Cabin crew members at Icelandair Group have voted against a provisional collective bargaining agreement that was struck between the airline and flight attendant union FFI in June.
The carrier says it will “evaluate its options” after union members “declined” the pact, an important part of its restructuring plan.
Icelandair has already reached new deals with its pilots and aircraft mechanics, but it was struggling to secure an agreement with the cabin crew union.
Talks had stalled for a period but the company subsequently managed to achieve a tentative deal with FFI representatives, with terms set to run to September 2025.
The objectives of the cabin crew agreement were “to ensure the long-term competitiveness of the company and, at the same time, protect good compensation and working conditions for cabin crew”, says the airline.
It adds that securing long-term agreements with its unions is one of the prerequisites for the financial restructuring of Icelandair Group. This restructuring includes a new $200 million share offering.
Icelandair Group has postponed this share offering at least until August as it seeks to complete negotiations with various stakeholders.