Despite offering an last-ditch improvement to its cost-cutting proposals to unions, Iberia had still not reached an agreement with its workers by the expiry of its 31 January deadline.
The Oneworld carrier has reduced the number of job losses it requires by 30% to 3,147, down from the 4,500 redundancies it proposed in November.
Pay cuts are also less steep. Ground staff now face an 11% decrease in wages and crew see theirs reduce by 23%, compared with the initial plan showing falls of between 25-35%.
Spain's UGT union, which represents a number of Iberia's ground staff and cabin crew, tells Flightglobal Pro it is continuing to engage in dialogue with the airline over the restructuring.
Parent company International Airlines Group had warned that unless a compromise agreement can be reached with staff representatives then it will be forced to push through deeper cuts.