International Airlines Group yesterday accepted a Spanish government-appointed mediator’s compromise proposal to end a labour dispute over mass layoffs at Iberia.

The holding company for British Airways and Iberia said: “The board of International Airlines Group has met in an extraordinary session to analyse and assess the proposal issued by a mediator regarding Iberia. As a result, the board has decided to accept the proposal.”

The mediator proposed Iberia lay off 3,141 workers, instead of the 3,807 the airline had planned to drop, with severance pay of 35 days per year worked, rather than 20.

Union workers had previously rejected a company offer to soften its initial plan for cutting staff as part of a survival plan for Iberia.

The mediator is due to meet worker representatives today (Monday). Iberia staff have staged two week-long strikes in protest against the proposed cuts and plan a third walk-out for March 18-22.