Air Niugini pilots have been ordered to meet with airline officials this week after refusing to take a 10 per cent wage cut to help the ailing national carrier.
The airline is trying to solve some of its financial woes by cutting the wages of all employees that are paid more than 11 thousand US dollars a year.
The airline's human resources manager, Rei Logona, says Government officials have stepped in to try and resolve the matter
"The Department of Labour and Employment have requested that both parties meet in-house, with a view to resolving the matter. And within 14 days if that doesn't eventuate then we will be...the Department of Labour and Employment will be intervening, with a mediator."
Mr Logona says the National Air Pilots Union had agreed to a wage cut if the company provided it with its financial accounts.
He says the airline was willing to do on the basis that the union signed a confidentiality agreement, but it had not done so.