Unions reject Iberia's plan as deadline goes

Representatives of Iberia have failed to reach an agreement with the Spanish airline's workers over a restructuring plan, leading to threats of industrial action.

Yesterday was the deadline for Iberia, which along with British Airways forms International Airlines Group, to reach a consensus on the plan with unions. Iberia says a strategy that included layoffs, cutting routes and salary reductions will boost its competitiveness and eventually see the airline make profits again.

However, unions representing ground staff, cabin crews and pilots yesterday rejected Iberia's new offer, which included dismissing 3,100 workers, instead of 4,500 as originally planned.