Icelandair braces for possible open-ended mechanics’ strike this month

Icelandair faces the prospect of an open-ended walkout by its aircraft mechanics later this month, with the carrier warning that its flight schedule could be disrupted unless a labour deal is reached in time.

The Icelandic Aircraft Mechanics Association (FVFI) has notified the airline that its members intend to strike from 00:01 local time on 23 September. In a stock-exchange notice dated 14 September, Icelandair said that if no agreement on a new collective bargaining agreement is reached before that deadline, the action is expected to disrupt flight operations and could affect the company’s timetable. The carrier said the potential financial impact cannot yet be quantified.

Long-running wage dispute

According to the union, the wage dispute with the airline’s flight engineers has been running since November of last year. The matter was referred to Iceland’s state mediator in mid-February, but the FVFI says little headway was made. Following a mediation session on 22 June, negotiations between the two sides broke down, prompting the union’s strike notice.

The industrial tension comes at a difficult financial moment for the carrier. Icelandair posted an operating loss of $29.6 million in the second quarter, a sharp reversal from the $800,000 operating profit recorded in the same period a year earlier, which the airline has attributed in part to elevated fuel costs.

What to watch

• Whether Icelandair and the FVFI reach a collective bargaining agreement before the 23 September strike deadline.
• Any updated stock-exchange notices from the carrier quantifying the financial effect of a strike or its resolution.
• Icelandair’s upcoming quarterly results, which will show any operational or financial impact from the labour dispute.

Source: original release