Circular 2004/14: Update on Recent Settlements of Collective Agreements

Date: 11 November 2004
Circular Number: 2004/14
Category: Industrial Relations

Update on Recent Settlements of Collective Agreements

This circular is about: The recent settlements of the Primary and Area Teachers' Collective Agreements and the Primary, Area, and Secondary Principals' Collective Agreements.

The action required is: To note the contents of this circular and complete the requirements, where applicable, concerning individual employment agreements. The concurrence process and policy is outlined in Appendix A of this circular.

It is intended for: Chairpersons of boards of trustees and principals of all state and integrated primary, area and secondary schools.

For further Information: Contact the Industrial Relations Unit by email: industrial.relations@minedu.govt.nz. All agreements are available on this website at www.minedu.govt.nz/goto/employmentagreements.

Introduction

Subsequent to Circular 2004/16, the primary and area teachers' collective agreements and the primary, area and secondary principals' collective agreements have been settled and ratified. This circular outlines the key elements of the respective settlements (view the collective agreements for full details of the settlements). It also contains promulgated Individual Employment Agreements and provides information on the concurrence process.

The settlements address the key claims raised by teachers and principals, including salary, workload and qualifications. They also put in place a number of longer term work programmes to support and promote effective teaching practice.

The ratification by a significant majority of teachers and principals sets the scene for a settled industrial environment and a positive start to the 2005 school year.

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Key Elements of the Primary and Area Teachers' Settlements

Term

The term of the collective agreements is for approximately 3 years, expiring on 30 June 2007.

Salary Increases

The salary increases agreed in the settlement are as follows: 

• a 2.5% increase to base scale salary rates with effect from 21 July 2004; 
• a further 3% increase to base scale salary rates with effect from 20 July 2005; and 
• a further 3% increase to base scale salary rates with effect from 19 July 2006.

The 3% increases agreed for 2005 and 2006 represent a 2.5% adjustment plus a 0.5% premium in recognition of the benefits of entering into the Longer Term Work Programme around supporting and promoting effective teaching.

The new base scale salary rates for primary and area teachers are set out in the table below.

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Table of Base Scale Salary Rates

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Unit increases

The value of a unit was increased from $3000 to $3,300 from 21 July 2004, to $3,400 on 20 July 2005 and to $3,500 on 19 July 2006.

Lump sum payment

Those bound by the collective agreements at the respective dates of settlement (17 September 2004 for primary teachers, 20 October 2004 for area teachers) will receive a lump sum payment of $500 (gross), pro rated for part time teachers, in recognition of the benefits arising from entering into a longer-term approach to enhancing teaching effectiveness.

Qualification Groups

The definitions of the Q3+/H3+ qualification groups were changed to include those teachers who hold a three-year teaching degree or a Diploma in Teaching plus an Advanced Diploma of Teaching, together with a relevant specialist one-year (120 credit) level 7 or higher graduate or post-graduate qualification. The qualifications must be completed separately and without cross credits or recognition for prior learning.

As a result of this change, more primary and area teachers will be eligible to access salary groups Q3+ and H3+. Principals will shortly receive a letter from the Ministry advising of the process to be followed for those teachers who meet the new criteria. Teachers are requested not to submit their information to the Ministry individually at this time.

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Recognition of Improved Qualifications

Where a teacher who has been on their qualification maximum for 12 months or more improves their qualifications, the date of formal confirmation of having attained an improved qualification becomes their new anniversary date for salary increments.

Tutor Teacher Allowance

The tutor teacher allowance paid to teachers who provide support and guidance to first and second year provisionally registered teachers will be increased from $500 to $1,500 p.a. from the beginning of the 2005 school year and to $2,000 p.a. from the beginning of the 2006 school year. From the beginning of the 2005 school year the restriction on teachers in senior management positions (assistant and deputy principals) receiving the allowance will be lifted.

Resource Teacher Units

In recognition of the findings of the job evaluation of itinerant resource teachers commissioned by the Ministry of Education in 2001 certain resource teachers currently not holding units will now receive units.

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Elements specific to the Primary Teachers' Collective Agreement

The settlement of the PTCA puts in place a Longer Term Work Programme that allows long term planning and improvements in the primary sector. There will be a number of concurrent work streams in which the Ministry of Education, the NZEI Te Riu Roa and the NZSTA will explore issues related to the longer term development of the primary teaching workforce.

This Work Programme will examine and report on ways to support and promote effective teaching practice. The key work streams will explore: 

• The work of a teacher; 
• Development of career pathways; 
• Professional development; and 
• Development of a new advanced qualification structure.

The work programme work will be undertaken during 2005-06. Information on the work programme, including timelines and processes for consultation with key stakeholders, will be sent to schools early in the new year.

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Classroom Release Time

From term 4, 2005, full time permanent and full time long term relieving teachers employed for a term or more will receive 10 hours Classroom Release Time (CRT) per term to release them from their classroom duties.

The NZEI, the Ministry and the NZSTA will, as part of the Longer Term Work Programme, draft a template policy and guidelines for use in schools. The CRT will be put in place in accordance with the policy developed in each school though a consultative process between the principal and teaching staff.

CRT will be extended to part time teachers employed for at least 0.8 FTTE and above from 2007. Primary schools will be provided with additional FTTEs to support the CRT.

He Tohu Matauranga

The recognition of He Tohu Matauranga for salary purposes will be explored as part of the longer term work programme.

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Study leave

From July 2005, the Ministry will provide 105 FTTE study leave positions over three years specifically for Assistant and Deputy Principals to enable these teachers to improve their qualifications. Any study leave positions not allocated in any year may be held over until the following year but all positions must be allocated by 30 June 2007. Further advice regarding the process for allocation of the study leave will be in schools in Term 1, 2005.

Time Allowance for Provisionally Registered Teachers

From the beginning of 2005, additional staffing will be provided to schools of 0.1 for full time provisionally registered teachers who are within their first 12-24 months of teaching.

Normal school allowance

The Normal School Allowance will be increased to $2000 from the beginning of 2005.

Maternity grant

Amendments were made to extend coverage for the maternity grant to those who give birth during term breaks and are not on maternity leave, provided they meet the criteria for the grant.

Surplus staffing

The length of redeployment and retraining periods will be increased from 26 to 30 school weeks. The provisions for school network reviews are unchanged.

Where a teacher has received a severance or long service payment and gains permanent employment in the Education Service within the period the payment is made, repayment is required of that portion of the payment.

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Elements specific to the Area School Teachers' Collective Agreement

Longer Term Work Programme

The Longer Term Work Programmes established in the primary and secondary teachers' settlements will consider area school teachers as appropriate. In addition, a specific work stream to examine the future direction of area schooling and resourcing requirements will be established to consider: 

• Curriculum delivery; 
• Staffing issues (including recruitment and retention, management and pastoral care); and 
• General resourcing, especially as it relates to remoteness.

Units

From the beginning of the 2005 school year area schools will receive a number of additional units generated by amendments to the unit formula in the Area School Staffing Orders in Council and advised to schools through the staffing notice.

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Maximum Timetabled Classroom Teaching Time

The settlement put into place provisions aimed at addressing teacher workload in the form of Maximum Classroom Contact Time (MCCT). The provisions are a hybrid of the existing secondary teacher Non-Contact Time provisions and the Classroom Release Time agreed in the primary teachers' settlement.

Teachers who predominantly teach years 7-13

From 20 October 2004 until the end of term four 2005, teachers who are timetabled to teach 80% or more of their teaching time in year 7 - 13 classes, will have a maximum of 21 hours of timetabled classroom teaching time per week. From the beginning of 2006 the maximum teaching time will be reduced to 20 hours per week.

From the beginning of 2005, the maximum timetabled teaching time of teachers who hold permanent units will be further reduced by the following: 

• one hour per week for holders of one permanent unit; 
• two hours per week for holders of two permanent units; and 
• three hours per week for holders of three or more permanent units.

From the beginning of 2007, maximum timetabled teaching time will also apply to part-time teachers, as set out in the ASTCA.

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Teachers who do not predominantly teach years 7-13

From the beginning of term 4, 2005, teachers who do not predominantly teach years 7-13 will have an average of 24 hours maximum classroom teaching time per week.

Where possible, schools should endeavour to reduce the maximum timetabled classroom teaching time of unit holders or their equivalents where they are required to carry out specific management and/or additional responsibilities.

Middle Management Allowances

From the beginning of the 2005 school year area schools will nationally receive around 420 Middle Management Allowances (MMAs) of $1,000 p.a. that will be generated by a formula in the Area School Staffing Orders based on the secondary curriculum and guidance staffing component of the school's staffing entitlement.

MMAs are to be allocated to teachers who hold 1-4 units. Schools with a total of seven (7) or more MMAs may allocate up to 15% of these allowances to teachers without units who have designated curriculum or pastoral management responsibilities. Schools with fewer than seven (7) middle management allowances will be able to allocate one (1) of these to such teachers.

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Time Allowance for Provisionally Registered Teachers

A 0.1 FTTE time allowance was introduced for beginning teachers in their second year of teaching to provide additional time for advice and guidance purposes.

Diploma in Specialist Subjects (secondary teacher)

Area school teachers who are H3 and are eligible to access the NZ Diploma in Specialist Subjects (Secondary Teacher) can access the supporting provisions offered outside of negotiations, as recorded in the Heads of Agreement of the Secondary Teachers' Collective Agreement, including contribution to course fees and study leave.

Medical Retirement

A new provision was included to provide for medical retirement where a teacher is unable to continue or to return to work as a result of a terminal illness.

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Leave provisions

The sick leave and parental leave provisions in Part 5 of the collective agreement were amended to include: 

• provision for sick leave for care of dependents; 
• provision for extended maternity leave; 
• Holiday Act 2003 sick leave provisions when entitlement is exhausted; 
• clarification of requirements for medical certificates and the ability for the employer to request a second opinion; and 
• service for the compassionate grant not to be broken by leave for care of preschool children.

Surplus staffing

The surplus staffing provisions were amended to provide: 

• an increase in retraining options from 30 to 40 paid school weeks; 
• 40 weeks supernumerary in closures and mergers; and 
• partial redundancy provision for part-time teachers in mergers.

Entitlement to severance and long service payments and the right to salary increases during periods of salary protection have been clarified.

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Area School Priority Teacher Supply Allowance

The current restriction on eligibility for the Area Schools Priority Teacher Supply Allowance by the number of permanent units held by a teacher will be lifted with effect from 21 July 2004.

Special Duties Incremental Allowance

The Special Duties Incremental Allowance will be extended to teachers in approved special classes in area schools as well as RTLBs.

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Key elements of the Primary, Area and Secondary Principals' Collective Agreements

The common elements of the three settlements are outlined below.

Term

The term of the collective agreements is for approximately 3 years, expiring on 30 June 2007.

U grade changes

The U Grade increases agreed in the settlements are as follows: 

• a 2.5% increase with effect from 21 July 2004; 
• a further 3% increase with effect from 20 July 2005; and 
• a further 3% increase with effect from 19 July 2006.

The new scale is set out below.

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New U Grade Rates

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Supplementary salary changes

The supplementary formula was increased by 5% from 21 July 2004; 7% from 20 July 2005 and 9% from 19 July 2006. The new formulas are given below.

Former rates:

Total Teacher Staff = 13 = ($500 x Total Teacher Staff) + $1,950
Total Teacher Staff > 13 = ($ 99 x Total Teacher Staff) + $7,450

With effect from 21 July 2004:

Total Teacher Staff = 13 = ($525 x Total Teacher Staff) + $2,048
Total Teacher Staff > 13 = ($104 x Total Teacher Staff) + $7,823

With effect from 20 July 2005:

Total Teacher Staff = 13 = ($562 x Total Teacher Staff) + $2,191
Total Teacher Staff > 13 = ($111 x Total Teacher Staff) + $8,371

With effect from 19 July 2006:

Total Teacher Staff = 13 = ($613 x Total Teacher Staff) + $2,388
Total Teacher Staff > 13 = ($121 x Total Teacher Staff) + $9,124

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Paid sabbatical leave

From term two, 2005, a number of paid sabbatical leave positions will be available nationally to principals (as set out in the respective collective agreements) subject to the following criteria: 

• The principal must have completed a minimum of five (5) years' service as a principal in a state or state integrated school; 
• Application by the principal supported by their board; and 
• The submission of a proposal of work to be undertaken during the sabbatical leave

Professional Standards

The Professional Standards for principals will be reviewed during 2005/06 and will link with other work on Principals' Professional Standards as appropriate.

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Holidays Act Amendment

Technical changes were made to reflect the Holidays Act as follows:

• A Principal required by their employer to work on a Public Holiday (as listed in s44 Holidays Act 2003) will be paid in accordance with the Act; and 
• Principals will take their annual leave outside the gazetted term dates, as provided by their collective agreement.

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Elements Specific to Primary Principals

Additional salary

From 19 July 2006, primary principals who have three (3) years' service at their current "U" grade or higher and who have been attested and have met the professional standards shall be entitled to receive additional remuneration of $2000 per annum. This is in recognition of experience and sound performance as attested to against the professional standards.

Where a principal moves up a "U" grade or more, they must meet the time and attestation criteria to access the payment from the time they receive the higher "U" grade salary. Where a principal moves down a "U" grade or more, they will retain the payment.

Teaching principals are included in the Longer Term Work Programme for primary teachers.

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Elements Specific to Area Principals

Additional salary

From 19 July 2006, area school principals who have three (3) years service at their current "U" grade or higher and who have been attested and have met the professional standards will be entitled to receive additional remuneration of $2000 per annum. This is in recognition of experience and sound performance as attested to against the professional standards.

Where a principal moves up a "U" grade or more, they must meet the time and attestation criteria to access the payment from the time they receive the higher "U" grade salary. Where a principal moves down a "U" grade or more, they will retain the payment.

Medical Retirement

A new provision was introduced for medical retirement at the initiation of the board or the principal where the principal is rendered incapable of proper performance of their duties and responsibilities as a result of mental or physical illness.

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Elements Specific to Secondary Principals

Surplus Staffing

Improvements were made to the surplus staffing provisions including an increase from 30 to 40 weeks retraining with course approval by the Secretary for Education and 40 weeks redeployment as a teacher with salary protection for the duration.

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Termination of Employment for Medical Reasons

An amendment was made to the collective agreement to provide that a principal may apply for medical retirement as per current provisions in Part 7 of the collective agreement. The employer may require a second medical opinion.

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Individual Employment Agreements

Teachers and principals not bound by a collective agreement will need to sign the new promulgated IEA (as provided at the end of this circular) to access the new terms and conditions of the applicable collective agreement. The board may offer the backdated increases as provided in the collective agreements. However, teacher IEA schedules already sent to schools will need to be correctly completed and returned to the Ministry of Education by 22 November 2004 in order to be processed in pay period 1319 (22 December 2004). Completed copies of principals IEAs will need to be received by Payroll Service Centres by 22 November 2004 in order to be processed in pay period 1319. Where notification is received after 22 November 2004, increases will be processed in the next available pay period.

At the time of signing the new IEA, all previous agreements to provide additional remuneration or benefits will be terminated. A new application for concurrence is required should the board wish to provide to the principal additional remuneration or benefits for additional responsibility.

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RRR Payments

Please note that at this time no adjustments have been made to the value of the RRR payments.

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G3 Specialist Diploma

Expressions of interest are being sought from those teachers who qualify for entry to the Diploma in Specialist Subjects (Secondary Teacher) and intend to enrol in the Diploma.

Visit www.minedu.govt.nz/goto/specialistdiploma to complete and submit a form if you are interested in enrolling in this Diploma. This information will be forwarded to the provider of the qualification to assist in their planning and preparation. Please note that this is not an enrolment, the provider will call for enrolments at a later date.

Further information regarding the package which supports the diploma, and details on the provider, will be made available as soon as details are confirmed.

Issued by

Chris Collins
Senior Manager, Industrial Relations
National Office
45 - 47 Pipitea Street, Thorndon
P O Box 1666, Wellington, New Zealand
Phone: 0-4-463 8000
Fax: 0-4-463 8001
www.minedu.govt.nz

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Appendix A

Concurrence

Following the settlement (and ratification) of a collective agreement, all remuneration or benefits which are additional to those provided in the collective agreement are terminated at the time the new rates in the collective agreement are paid for the first time. New concurrence is required should a board wish to continue to provide additional remuneration or benefit for additional responsibility.

Outlined below is the procedure relating to the application of concurrence for principals covered by the Secondary, Primary and Area School Principals' Collective Agreements and the respective promulgated individual employment agreements. The Secretary for Education (Industrial Relations Unit) has the delegated authority from the State Services Commissioner to agree to a board paying a principal remuneration and other benefits that are in addition to the remuneration and benefits specified in the applicable collective agreement (CA) or promulgated individual employment agreements (IEA) based on the CA.

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Purpose of payment

The additional remuneration or benefit should be for the limited purpose of recognising and compensating the principal for the performance of additional duties or responsibilities that are for the benefit of their school and that are outside the scope of the normal duties and responsibilities of a principal.

An additional remuneration or benefit would not be necessary or appropriate in respect of duties and responsibilities that form the basis for determining the principal's basic salary. Furthermore, any additional remuneration or benefit would not be valid if the purpose is to reimburse the principal for a private expense, such as health insurance.

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Application of policy

An agreement between a board of trustees (the employer) and principal (the employee) to provide additional remuneration or benefits is not legal or binding without concurrence from the Industrial Relations Unit (on behalf of the Secretary for Education).

Where a board has determined that the principal is required to undertake responsibilities which are additional to those normally required of a principal, and has agreed and recorded in the board minutes that it wishes to pay additional remuneration, concurrence must be sought before any formal offer is made to the principal.

The board, should record the additional duties and remuneration (and other relevant terms) in a variation of the principal's employment agreement, to reflect that it is a legally enforceable term of employment in addition to those terms and conditions provided in the CA or the promulgated IEA. The Ministry can provide on request a template for a draft variation.

The additional remuneration which has received concurrence will be paid on a fortnightly basis with the principal's normal salary.

Concurrence is currently granted for one school year only. If a board wishes to continue making the payment it must seek concurrence from the Ministry for a further defined period.

For those principals not bound by the collective agreement and who are on an IEA, new concurrence is required at the time the offer of the new promulgated IEA occurs.

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Reasons for additional remuneration or benefits for which concurrence may be given

Some of the reasons that the Ministry would usually consider an acceptable basis for granting concurrence include (but are not restricted to): 

• Management of, and responsibility for, a residential/boarding hostel; 
• Recruitment and management of large intakes of foreign fee paying students; 
• Management of, and responsibility for, a significant initiative that earns extra revenue for the school and is in addition to the principal's normal role; 
• Management of a school that is considered an exemplar of practice which results in other schools seeking information and advice on the processes undertaken to achieve and maintain the high levels of practice; 
• Management of, and responsibility for, implementing a significant change process.

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Reasons for additional remuneration or benefits that would not be considered appropriate for concurrence

• Performance payments in the role of principal; 
• Recruitment and retention of the principal; 
• The decile level of the school (this is already part of the remuneration formula); 
• Personal benefits including; provision of car or private use of board owned car, motor vehicle allowances for transport to and from work, insurances, subsidised housing rental, Koru Club membership where travel is not for school business only, grooming expenses.

The Ministry will consider each application on its individual merits within the policy parameters described in this circular.

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Additional remuneration or benefits for which concurrence not required

Additional leave

The board is able to provide an increased amount of leave (under clause 5.7.8 (f) SPCA or clause 5.1.5 ASPCA or Clause 7.4 of the PPCA) without obtaining the concurrence of the Ministry. In such circumstances the board does not receive any additional funding to cover the extra leave.

Reimbursement of Expenses

It not necessary to obtain the concurrence of the Ministry for the board to provide for reimbursement of legitimate work-related expenses of the principal (for example, phone bills) under clause 3.3.1 of the SPCA, clause of the 3.3.1 ASPCA or clause 1.8 of the PPCA:

Funding for additional payment

These additional payments are funded by the school from the operations grant and the liability associated with the payment rests with the board. The board must be satisfied and confirm to the Ministry that the additional payment can be paid from its operations grant without adverse effect on the financial position of the school.

Procedure for obtaining concurrence

A letter of application for concurrence must be sent to the Ministry of Education Industrial Relations Unit by the board. All applications must include: 

• Detailed information and/or supporting documents that explain the principal's additional responsibilities; 
• The specific amount of the additional remuneration or benefit the board is seeking to make; and 
• Acknowledgement that the board accepts the liability for the remuneration or benefit and has the financial capacity to make the payment without detriment to its other activities.

Where concurrence is sought to provide additional remuneration or benefit to a principal employed on an IEA that provides for different terms and conditions than the promulgated IEA the Ministry must also sight the full draft IEA with the amendments and/or additions.

In some cases, the Ministry will request further information from the board before making a decision on whether to grant concurrence.

Retrospective concurrence is not granted for past payments for which concurrence has neither been sought nor granted. Only in exceptional cases will concurrence be backdated, however, it will not be backdated to a previous year.

A letter will be sent from the Ministry confirming that concurrence has either been granted or declined. Where an application is declined, then the Ministry may set out the reasons in the letter. In appropriate cases, depending on the reasons for the decision, the Ministry may invite the board to re-apply at a later date.

Where concurrence is granted, then the board will need to provide a copy of the letter granting concurrence to their payroll service centre when advising that the payments are to be made.