As a result of the deal struck on Sunday night, unions representing 1,300 cabin crew in Norway and Denmark have shelved a strike planned for the next few weeks.
Hans-Erik Skjæggerud, who leads the Parat Union, said that Norwegian had granted the unions "collective agreements" that were "approximately equal" to the existing framework, allowing the union to continue to bargain for both Danish and Norwegian staff.
As a result of the deal, Skjæggerud confirmed that Norwegian had would not act on threats made in a text message to employees last week to dissolve bases in Norway, transfer Danish staff to an agency and cancel free staff tickets.
"It is good we reached a deal and that we can look forward," the company's chief executive Bjørn Kjos said in a statement.
The company's shares jumped in early morning trading after the news was announced, finishing the day up 4.3 percent.