Banco Sabadell: According to press reports, Vueling, which represents ~7.5% of IAG’s employee cost, has reached a wage agreement with its cabin and office crew, who in turn make up 69% of the company’s total employees, establishing a +4.5% increase for 2022 and an annual non-consolidated payment of 0.8%. In addition, for 2023, an increase of +3%, which could rise to +4% under certain unpublished conditions, and an annual non-consolidated payment of 1.5% is agreed. For 2024 and 2025, a scheme linked to the company’s results and the evolution of the CPI is established.
Negotiations are now pending with the pilots to review the agreement signed in 2019, which expires in 2024.
Assessment: Positive news insofar as the risk of new strikes is eliminated given that Vueling had already suffered a strike at the end of 2022 due to this issue. Little impact is expected given that the agreement would be in line with expectations and that, in addition, the impact of Vueling on IAG is not relevant due to its smaller size.