Deeper wage cuts for Iberia staff are planned after management failed to reach agreement with unions on productivity improvements at the loss-making Spanish airline.

Iberia said pilots and cabin crew would face pay cuts of 18%, rather than a 14% reduction. Ground staff face cuts of 11% rather than 7%.

The deeper cuts are consistent with recommendations by a government-appointed mediator asked to bring an end to strikes at the International Airlines Group carrier.

IAG originally proposed cutting 4,500 jobs at Iberia – 22% of the workforce – but last month it accepted the mediator’s proposal that the number should be reduced to 3,141.

Unions representing ground staff and cabin crew have accepted the mediator’s recommendations.

But pilots’ union Sepla rejected the plan, the Financial Times reported.