Qantas, engineering union reach agreement

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Qantas Airways and the Australian Licensed Aircraft Engineers Association (ALAEA) have reached a proposed agreement involving 1,600 licensed aircraft engineers.

The proposal, which both Qantas and ALAEA have submitted, was intended to "form part of a workplace determination that the parties will ask Fair Work Australia (FWA) to make and would remain in force until 31 December 2014", said Qantas in a statement.

The proposed agreement includes an annual 3% pay increase, "new licensing arrangements", ease of restriction on extended hour rosters and "arrangements for the transition to retirement". "Restrictive demands" made by ALAEA are not part of the agreement.

The arbitration process with the Australian and International Pilots Association (AIPA) and Transport Workers Union (TWU) is ongoing before Fair Work Australia (FWA).

"After such a damaging industrial campaign, this is a positive outcome that will allow Qantas to move forward with certainty," said Qantas CEO, Alan Joyce.