By Catherine MacDonald
MADRID (Reuters) - Striking union workers clashed with police at Madrid's Barajas airport on Monday on the first day of a week-long strike over more than 3,800 pending job cuts at Spain's flagship airline Iberia.
Hundreds of workers demonstrated outside Barajas, Iberia's hub, and inside the airport's Terminal 4 where they carried out a sit-in and chanted and whistled.
Outside the terminal police beat some strikers with truncheons. At least two protesters were arrested.
More than 80 Iberia flights were canceled on Monday as workers at the carrier began the series of strikes that is expected to cost the airline and struggling national economy millions of euros in lost business.
Staff, including baggage handlers and air stewards, are holding three five-day strikes in February and March to protest management plans to axe jobs and cut salaries at the loss-making airline. Some 10 percent of long-haul flights and half of domestic flights will be grounded this week.
The labor unions kicked off the demonstrations in the morning with an 8 km-march (5 miles) around Barajas, telling reporters the airline was under threat, as was the future of the airport.
"Nobody is safe from being sacked," said Elias Gonzalez, a maintenance supervisor at the protest who has worked for Iberia for 27 years.
"There was an initial deal with the company when the merger with the British was agreed, but now there is disagreement."
Although skeleton staff were on duty and the airline had rescheduled most passengers or returned them their money, some people were left stranded.
"When we come for tourism, we don't want to be bothered by strikes," said Robert, a French tourist who did not want to give his last name.
"Everyone has their problems but they shouldn't bother people who bring in money. That's also business."
Queues formed as some staff abandoned check-in desks while unionists shouted in the airport.
The February 18-22 strike coincides with school holidays in Britain, Spain's biggest source of tourists.
Tourism accounts for around 11 percent of Spanish economic output and is one of the country's few growth sectors in a prolonged recession that has pushed the unemployment rate above 26 percent.
LOSS AFTER MERGER
Iberia, which merged with profitable British Airways in 2011 to form the International Airlines Group, reported a loss of 262 million euros ($349.78 million) in the first nine months of 2012.
In anticipation of the strike, Iberia has canceled 415 flights between Monday and Friday, and as many as 1,200 flights operated by various airlines will be disrupted because some Iberia workers handle baggage for other airlines, at airports around Spain.
Some 70,000 passengers will be affected. About 86 percent have been given a different flights, including those operated by other airlines, while 14 percent had asked for refunds.
The airline says restructuring is vital to return the Spanish unit to profitability while unions say the IAG management is degrading pay and benefits in Spain through its new low-cost airline Iberia Express.
Iberia is just one of several companies in Spain, including Vodafone and bailed-out lender Bankia, to lay off workers.
It is fighting an uphill battle against low-cost operators, a depressed domestic economy and competitors that are in better shape after having already gone through restructuring processes.
Sabadell Bolsa analysts said the total 15 days of strikes could cost Iberia between 50 million euros and 100 million euros of losses. ($1 = 0.7490 euros)
(Additional reporting by Robert Hetz and Silvio Castellanos, writing by Clare Kane and Sarah Morris, Editing by Angus MacSwan)