Air New Zealand has issued lockout notices to over 100 staff aligned with the Service and Food Workers Union (SFWU).

The notice comes as the union members - a small proportion of the airline's 3300 ground staff - bargain for a new collective employment agreement.

Air New Zealand international operations general manager John Whittaker said management tried to avoid industrial action wherever possible but the situation had become untenable.

Mr Whittaker said the members were seeking terms and conditions that were superior to those of staff either on individual contracts or aligned with other unions.

The lockout means employees are not entitled to work and will not be paid for the period it is in place, which is initially between November 26 and December 6 and varies for different staff.

Mr Whittaker said he hoped the lockouts could be avoided by successful mediation within the next two weeks.

SFWU northern region secretary Jill Ovens said the airline had indicated the only way the lockouts could be avoided was to agree to the company's offer of a three-year deal with major clawbacks.

That included removal of extra shift allowances and overtime rates after eight hours work and double time for work after midnight and on weekends.

Meal allowance cuts and increased roster flexibility were also on the table, she said.

"This will cost our members up to NZ$20,000 a year and they are not well paid in the first place."

Ms Ovens said the airline was creating a part-time workforce of young people.

The Employment Relations Authority last week ruled Air New Zealand had breached good faith in earlier dealings with the SFWU and as a result the airline faces penalties of up to NZ$2.69 million.