Qantas Reaches Landmark Agreement with AMWU and AWU

SYDNEY, 10 January 2002

Qantas Airways said today it had reached a landmark agreement with the AMWU and AWU providing a 12 month wage pause until 30 June 2002 and future wage increases dependent on demonstrated productivity improvements.

The increases which will be paid if productivity targets are met are:

* 2 per cent from 1 July 2002 until 31 December 2002;* 2 per cent from 1 January 2003 until 30 June 2003; and* 2 per cent from 1 July 2003 until 31 December 2003.

Qantas Executive General Manager Aircraft Operations David Forsyth said 12 Qantas Unions, including the AMWU and AWU, had now agreed to a wage pause of at least 12 months.

"Qantas has asked its workforce to accept the wage pause because of the extraordinary state of the global and domestic aviation industries.

"All staff, including members of the AMWU and AWU, have also been guaranteed a 3 per cent incentive bonus for the 2002 financial year if the company matches last year's profit result."

Issued by Qantas Corporate Communication (2585)