Circular 2019/09 - Settlement of the Teacher and Principal Collective Agreements and New Related Individual Employment Agreements

This circular is about the recent settlements of collective agreements for principals and teachers, and newly promulgated individual employment agreements.

Date 16 October 2019 | Circular 2019/09 | Category Employment Relations

This circular is about the details of the recent settlements of the Primary Teachers’ Collective Agreement, Secondary Teachers’ Collective Agreement, Area School Teachers’ Collective Agreement; and the Primary Principals’ Collective Agreement, Secondary Principals’ Collective Agreement and the Area School Principals’ Collective Agreement and information on applicable Individual Employment Agreements.

This circular does not replace any other.

The action needed is to note the contents of this circular and complete the requirements concerning Individual Employment Agreements, if applicable.

It is intended for Chairpersons of Boards of Trustees and Principals of all state and state-integrated schools.

For more information contact the New Zealand School Trustees Association about human resource issues generally on 0800 782 435. Email the Ministry of Education's Employment Relations Unit: employment.relations@education.govt.nz. All collective agreements for school staff can be found on the Ministry's website: www.education.govt.nz/collective-agreements/

Introduction

In June 2019, three collective agreements covering teachers employed in state and state-integrated primary, secondary and area schools were settled and subsequently ratified by members of the unions’ party to these agreements – the New Zealand Education Institute Te Riu Roa (NZEI Te Riu Roa) and the NZ Post Primary Teachers’ Association Te Wehengarua (PPTA).

All three agreements are effective from 1 July 2019 to 30 June 2022.

Following the teacher settlements, in August and September 2019, three collective agreements covering principals in state and state-integrated primary, secondary and area schools were settled and ratified by members of the unions’ party to these agreements, NZEI Te Riu Roa, PPTA and the Secondary Principals Association of New Zealand (SPANZ) Union.

The effective dates of the new principals’ collective agreements are:

  • Primary Principals’ Collective Agreement – 26 August 2019 to 25 August 2022
  • Secondary Principals’ Collective Agreement – 2 September 2019 to 1 September 2022
  • Area School Principals’ Collective Agreement – 6 September 2019 to 5 September 2022.

This circular provides a summary of the changes and new provisions agreed in these settlements. The full collective agreements can be downloaded from the Ministry of Education’s website, and printed copies will be available from the New Zealand Schools Trustees Association (NZSTA).

All collective agreements for teachers and principals

Accord between the Ministry of Education, PPTA and NZEI Te Riu Roa

The parties (Ministry, PPTA and NZEI Te Riu Roa) agreed to enter into an Accord, alongside the collective agreements to address a range of issues raised by the parties and to give effect to building a high trust environment where the teaching profession is highly regarded, sustainable, and is fit for now and the future of learning. SPANZ Union will be involved in the Accord on matters that relate to their members. You can read more about what was agreed in the Accord here [PDF, 1 MB].

Key Features of the Settlements for Primary, Secondary and Area School Teachers

Base salary rates for all trained teachers reflect the movement to a unified base salary scale across the teacher collective agreements, and provide an increase from 1 July 2019, with further increases on 1 July 2020 and 1 July 2021:

Step Qualification Group Notations Rates effective
1 July 2019
Step Qualification Group Notations Rates effective
1 July 2020
Rates effective
1 July 2021
1 Q1E, Q2E, Q3E $48,410 1 Q1E, Q2E, Q3E $49,862 $51,358
1 Q1E, Q2E, Q3E  $48,410  1 Q1E, Q2E, Q3E  $49,862  $51,358 
Q1E, Q2E, Q3E  $48,410  Q1E, Q2E, Q3E  $49,862  $51,358 
2   $50,470 2   $51,984 $53,544
3 Q3+E $52,736 3 Q3+E $54,318 $55,948
4 Q4E $54,796 4 Q4E $56,440 $58,133
5 Q5E $58,247 5 Q5E $59,994 $61,794
6 Q1M $62,000 6   $63,860 $65,776
7 Q2M $66,100 7   $68,000 $70,040
8   $71,000 8   $73,000 $75,190
9 Q3M $75,200 9   $77,100 $79,413
10 Q3+M, Q4M, Q5M $80,500 10 Q1M, Q2M, Q3M $83,000 $85,490
      11 Q3+M, Q4M, Q5M $87,000 $90,000

Untrained teachers also receive increases to base salary rates.

Lump Sum Payment

Subject to the Terms of Settlement of the applicable collective agreement, teachers who are union members receive a one-off payment of $1,500, pro-rated for part-time teachers.

Parental Provisions

It was agreed that changes to the collective agreements be made to amend the Parental Provisions to make language gender neutral from 1 July 2019.

Surplus Staffing Provisions

The parties have agreed to review the area school teachers’ and primary teachers’ surplus staffing provisions to improve the flow and language, during the term of the agreements.

Summary of Other Changes

Primary Teachers’ Collective Agreement:

  • Mentor Teacher Allowance – the tutor teacher allowance has been renamed from 1 July 2019, and circumstances when a teacher can be designated as a mentor teacher have been extended, to better align with the resourcing time allowances allocated to schools currently.
  • Kāhui Ako Leadership Role – teachers appointed to the Kāhui Ako Leadership role, by agreement from the Secretary for Education, can now access the relevant provisions of the Primary Principals’ Collective Agreement, aligning provisions across the sector.
  • Isolation Allowance – allowances have been rationalized to two depending on criteria.
  • Unified Base Salary Scale – a new clause, Unified Base Salary Scale, has replaced the previous clause, Approaches to Remuneration Comparability, reflecting the movement to a unified base salary scale for trained teachers.
  • Resource Teachers – changes have been made to the wording which clarifies the additional unit on appointment is limited to one per person, paid at the substantive rate for new appointments from 1 July 2019.

Area School Teachers’ Collective Agreement:

  • Units – the value of units will increase from $4,000 to $5,000 per annum from 28 January 2020.
  • Middle Management Allowance – the MMA value will increase from $1,000 to $2,000 per annum from 28 January 2020.
  • Specialist Teacher Allowance – the SCT allowance will increase either $1,000 or $2,000 per annum from 28 January 2020 depending on the size of the school.
  • Area School Priority Teacher Supply Allowance – the criteria has been amended to ensure the rate of the allowance is $2,500 for all teachers who hold a current practicing certificate in those schools identified by the Ministry as requiring additional support for recruitment and retention from 1 July 2019.
  • Isolation Allowance – allowances have been rationalized to two depending on criteria.
  • Careers Adviser Allowance – increases to $2,250 from 1 July 2019.

Secondary Teachers’ Collective Agreement:

  • Units – the value of units will increase from $4,000 to $5,000 per annum from 2020 and an additional 1000 units will be provided from the commencement of the 2020 school year.
  • Middle Management Allowances and Senior Management Allowances – the MMA and SMA values will increase to $2,000 per annum from 28 January 2020.
  • High Priority Teacher Supply Allowance – the criteria has been amended to ensure the rate of the allowance is $2,500 for all teachers who hold a current practicing certificate in those schools identified by the Ministry as requiring additional support for recruitment and retention from 1 July 2019.
  • Māori Immersion Teacher Allowance – a new allowance of $2,000 per annum has been introduced for teachers with three continuous years’ teaching service at level 1 immersion; and teachers with six continuous years’ teaching experience will receive an increased allowance of $4,000 per annum from 1 July 2019.
  • Careers Adviser Allowance – increases to $2,250 from 1 July 2019.
  • Professional Development Fund – in addition, a Memorandum of Understanding will be developed and agreed between the parties on the use of $5 million per annum from 2020 for the purposes of professional development for secondary teachers.

Individual Employment Agreements for Teachers

Teachers who are not members of NZEI Te Riu Roa or PPTA but whose work could fall within the respective coverage clause of the relevant collective agreement may be offered the newly promulgated IEA to access the applicable terms and conditions of the renegotiated collective agreement.

On 1 October 2019, the Secretary for Education promulgated new IEAs so teachers who are not union members will need to sign a new IEA to access the new terms and conditions (including the increased pay rates). The IEA is only valid if both the employer and the employee sign it, and cannot be before 1 October 2019.

The Secretary has also promulgated a new IEA for teachers in relieving and/or fixed term positions. To access the increased pay rates and the improved terms and conditions of the IEA, all teachers in relieving and/or fixed-term positions will need to sign a new IEA, and this IEA also is only valid if both the employer and the employee sign it, and cannot be dated before 1 October 2019.

Employers are required to inform new employees that a collective agreement exists and provide them with a copy of the agreement, as well as information regarding how to contact and join the relevant union. New employees who are not members of the union must be employed on an IEA based on the applicable collective agreement for the first 30 days of employment, after which they can choose to remain on the IEA or join the applicable union and become bound by the collective agreement.

Individual Employment Agreements for all teachers

Please note that if the Board and the employee do not sign the new IEA then the new provisions will not apply. Pay rates and other provisions will remain the same as provided for in the now expired collective agreement.

In the event a Board has concerns and/or questions regarding its employment arrangements with individual employees, the Board should contact its NZSTA adviser or its own employment adviser.

Key Features of the Settlements for Primary, Secondary and Area School Principals

Salary rates for all principals reflect the movement to a unified base salary scale, across core components of remuneration including roll, staffing and decile, and provide an increase to roll based salary from 20 August 2019, with further increases on 20 August 2020 and 20 August 2021:

U-Grade Roll Size Rates effective
20 August 2019
Rates effective
20 August 2020
Rates effective
20 August 2021
U1 1-100 $92,403 $95,175 $98,031
U2 1-100 $92,403 $95,175 $98,031
U3 101-150 $100,076 $103,078 $106,170
U4 151-300 $107,917 $111,155 $114,489
U5 301-500 $115,759 $119,231 $122,808
U6 501-675 $120,241 $123,848 $127,564
U7 676-850 $124,908 $128,655 $132,515
U8 851-1025 $129,577 $133,464 $137,468
U9 1026-1200 $132,751 $136,733 $140,835
U10 1201-1400 $135,923 $140,001 $144,201
U11 1401-1600 $140,554 $144,770 $149,114
U12 1601-1800 $145,186 $149,541 $154,028
U13 1801-2000 $149,516 $154,001 $158,621
U14 2001-2200 $153,847 $158,462 $163,216
U15 2201-2400 $157,637 $162,367 $167,237
U16 2401+ $161,429 $166,272 $171,260

Staffing Based Component

Three increases of 3% per annum for all principals following unification of rates, effective 20 August 2019, 20 August 2020 and 20 August 2021.

Decile Funding

The new decile funding rates for all principals will be paid as follows:

Grade Decile 1 or 2 school
Rates effective 20 August 2019
Decile 3 or 4 school
Rates effective 20 August 2019
1 $4,375 $2,187
2 $4,375  $2,187 
3 $4,746  $2,372 
4 $5,116  $2,559 
5 $5,488  $2,743 
6 $5,709  $2,855 
7 $5,709  $2,855 
8 $6,155  $3,078 
9 $6,155  $3,078 
10 $6,451  $3,225 
11 $6,451  $3,225 
12 $6,674  $3,336 
13 $6,674  $3,336 
14 $6,674  $3,336 
15 (secondary only) $6,674  $3,336 
16 (secondary only) $6,674 $3,336 

Lump Sum Payment

Subject to the Terms of Settlement of the relevant collective agreement, principals who are members of the applicable union, receive a one-off payment of $1,500 if they are covered by the Primary Principals Collective Agreement, or $500 if they are covered by the Secondary and Area School Principals’ Collective Agreements.

Parental Provisions

The parties have agreed to include gender neutral provisions across the principals’ collective agreements.

Summary of Other Changes

Primary Principals’ Collective Agreement:

  • Support for smaller schools – schools with less than 2 FTE curriculum staffing, will receive additional operational funding enabling them to engage support staff for the following year, to make up to two full time equivalent employees during the school day including the principal, i.e. six hours per day on days that the school is open for instruction.
  • Surplus Staffing – the parties have agreed to review the surplus staffing provisions to improve the flow and language during the term of the agreement.
  • Unified Pay System – a new clause, Unified Pay System, has replaced the previous clause, Approaches to Remuneration Comparability, reflecting the movement to unified base remuneration for principals.
  • Professional Development Fund – a fund of $300,000 per annum will also be established, for the purposes of primary school principals’ professional development from the beginning of the 2020 school year.

Secondary Principals’ Collective Agreement:

  • Annual Leave – secondary principals’ entitlement to annual leave increases from 4 to 5 weeks from 2 September 2019.
  • Removal Expenses – removal expenses provisions have been amended to provide additional clarity of a principal’s entitlement.
  • Leadership in Realising Youth Potential Payment – the parties have agreed differentiated increases to the payment, effective 28 January 2020, 28 January 2021 and 28 January 2022.

Area School Principals’ Collective Agreement:

  • Te Rau Titoki Leave – from the beginning of the 2021 school year a new category of sabbatical leave will be introduced. The purpose of Te Rau Titoki leave, is to enable area school principals to take time to focus on undertaking the community responsibilities, outside of leading their school which are integral to their principal role. The parties have also agreed to increase the number of sabbaticals from 10 to 13 from the start of the 2022 school year.
  • Community of Learning | Kāhui Ako leadership flexibility – the parties have committed to discuss greater flexibility of leadership arrangements during the term of the collective.
  • Area School Principals’ Payment – the parties have agreed differentiated increases to the payment, effective 28 January 2020, 28 January 2021 and 28 January 2022.

Individual Employment Agreements for Principals

Principals who are not members of NZEI Te Riu Roa, PPTA or SPANZ but whose work could fall within the respective coverage clause of the relevant collective agreement may be offered the newly promulgated IEA to access the applicable terms and conditions of the renegotiated collective agreement.

On 2 September 2019, the Secretary for Education promulgated new IEAs for primary and secondary principals, and on 6 September 2019 the Secretary promulgated a new IEA for area school principals. Those principals who are not union members will need to sign a new IEA to access the new terms and conditions (including the increased pay rates). The IEA is only valid from the date that both the employer and the employee sign it, and this date cannot be before the date of promulgation.

Employers are required to inform new employees that a collective agreement exists and provide them with a copy of the agreement, as well as information regarding how to contact and join the relevant union. New employees who are not members of the union must be employed on an IEA based on the applicable collective agreement for the first 30 days of employment, after which they can choose to remain on the IEA or join the applicable union and become bound by the collective agreement.

Individual Employment Agreements for all principals

Please note that if the Board and the employee do not sign the new IEA then the new pay rates and other provisions will remain the same as provided in the now expired collective agreement.

In the event a Board has concerns and/or questions regarding its employment arrangements with individual employees, the Board should contact its NZSTA adviser or its own employment adviser.

Issued by

Mark Williamson, Senior Manager Employment Relations and Pay Equity, Education Workforce, Early Learning and Student Achievement
Ministry of Education, National Office, Mātauranga House, 33 Bowen Street, Wellington 6011
PO Box 1666, Wellington 6140, New Zealand, Phone 04-463 8000, Email employment.relations@education.govt.nz

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