On February 5, Qantas said that it had reached an "in principle" Enterprise Bargaining Agreement (EBA) with the Australian Licensed Aircraft Engineers Association (ALAEA).

The new four-year agreement, which will be the subject of a formal vote, covers nearly 1,600 Qantas Engineering employees.

The Chief Executive Officer of Qantas, Mr Geoff Dixon, said the agreement was important for the Qantas Group and its employees.

"The agreement has been the subject of intense negotiations in recent weeks and will create a foundation for jobs growth in Qantas, as well as providing a solid base for aircraft maintenance in Australia," Mr Dixon said.

"It will also provide certainty regarding pay and conditions over a four-year period and will provide Qantas Engineering with the workplace cooperation, flexibility, and efficiencies it needs to meet cost and competitive pressures."

Key features of the agreement, which are consistent with those reached with other Qantas unions, include:

• an annual wage increase of three per cent, backdated to January 2007;
• an increase in company superannuation contributions in accumulation funds to no less than 10 per cent, with employees in defined benefit schemes also able to salary sacrifice their employee contributions; and
• changes to the number and spread of part-time and casual employees and the lifting of restrictions on the use of fixed term contract employment.

The agreement also covers a range of issues related to Qantas Engineering's heavy maintenance operations, including greater roster flexibility at key heavy maintenance bases.