Air New Zealand (ANZ) Airbus A320 cabin crew have agreed to a union deal over wages and conditions, putting an end to a protracted dispute.

The Star Alliance carrier says the employees of its Zeal 320 subsidiary have ratified a union deal covering wages and conditions.

Zeal 320 employees are cabin crew that work on ANZ's A320s and they have been in dispute for at least six months. The workers were unhappy they were paid less than A320 cabin crew employed directly by the airline.

The Engineering, Printing and Manufacturing Union (EPMU), which negotiated the new 15-month deal, says it gives the workers a one-off payment of NZ$1,000 ($682), a new guaranteed allowance ranging from NZ$149 and NZ$186 per fortnight, a 3.95% wage increase and after 12 months a 6.7% increase in tour of duty allowance.

"A working group will also be established to look at hours of work and rostering," it says.

"The deal goes a long way in closing the gap with ANZ short-haul crew in several key areas and provides greater security in income," it adds.

EPMU national secretary Andrew Little says: "This has been a long, difficult and - at times- bruising dispute. Now it is all over we will be looking forward to working with ANZ to achieve more mutually beneficial gains, especially over rostering issues."

"One of the key aspects of the deal" is the establishment of working groups that includes workers and management working together to address issues, he adds.

Source: Air Transport Intelligence news