Maintenance workers at Australian airline Qantas have agreed to a 12-month pay freeze, ending the threat of strike action.

Like other airlines around the world, Qantas is putting through a programme of job cuts and cost controls to cope with falling passenger numbers in the wake of the 11 September terrorist attacks.

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

Two maintenance workers' unions have agreed to accept a pay freeze till June 2002, ending a four month old dispute.

Delayed pay rise

The pact means "we've got a situation where we can continue to move forward," said David Forsyth, executive general manager of aircraft operations.

From June, the airline will pay the 2,500 maintenance staff rises of 6% over 18 months, and a 3% productivity bonus if they meet agreed targets to speed up aircraft turnaround times.

Doug Cameron, national secretary of the Australian Manufacturing Workers' Union, said the two sides will set up a committee to monitor productivity.

The agreement means 12 unions have now accepted the pay freeze.

Qantas is 25% owned by British Airways.

Qantas' restructuring will increase its reliance on the domestic market, where it got a boost last autumn from the bankruptcy of rival Ansett.

However, Qantas made the bulk of its profits - 78% - from international flights in the 12 months to June 2001.