IAG accepts mediators plan to end Iberia labour dispute "The board has decided to accept the proposal," the company said in a statement. International Airlines Group, or IAG, is the holding company for Iberia and British Airways. The mediator proposed Iberia lay off 3,141 workers, instead of the 3,807 the airline had planned to let go, with severance pay of 35 days per year worked, rather than 20. Struggling to compete with low-cost competitors, loss-making Iberia also had also announced plans for 20pc salary cuts for its remaining 16,000 workers. The mediator has proposed 15pc reductions in salaries. During the two week-long strikes by pilots, air stewards and ground staff, Iberia canceled about 10 percent of flights to the United States and Latin America and 50pc of flights within Spain. The company has said it was losing €3m a day during the strikes. Earlier this month, IAG warned of further job cuts at Iberia after the aviation giant crashed almost €1bn (£865m) into the red. Spain's national airline has suffered during the country's deep recession, as well as having to face rising fuel bills and fierce competition from low-cost carriers such as Ryanair.