Air France strikes pay deal with unions, ending labour dispute

PARIS (Reuters) - Air France signed a new pay deal with unions, the French airline's parent company, Air France KLM <AIRF.PA>, said on Friday, drawing a line under a labour dispute that led to weeks of strikes and flight cancellations earlier this year.

Under the agreement, Air France agreed to grant workers a 2 percent pay rise backdated to the start of this year, followed by a further 2 percent raise on January 1, 2019.

The pay deal will take effect after it was signed by five of the airline's seven representative unions, on behalf of 76.4 percent of employees, Air France-KLM said.

(Reporting by Laurence Frost, editing by Louise Heavens)