ALTERNATIVE DISPUTES RESOLUTION PANEL
FINAL RECOMMENDATIONS FOR THE SETTLEMENT OF THE SECONDARY TEACHERS' COLLECTIVE AGREEMENT
19 August 2002
A. Background
The Dispute
This dispute over the re-negotiation of the secondary teachers collective agreement has been both protracted and unusual. It has spanned a period of 16 months, and on two occasions settlement was reached around the table but was subsequently not ratified by PPTA members. A third offer developed by the government in response to a PPTA claim was presented on 4 July but was rejected by the PPTA Executive and not submitted for ratification.
This dispute has undoubtedly been complicated by the implementation in the current school year of a revolutionary change in approach to the teaching and assessment of pupil's, the NCEA. Whilst there is a good deal of consensus over the philosophy under-pinning the NCEA, it is probably fair to conclude that the impact on the workload of teachers through the implementation phase was under-estimated by all concerned.
After the rejection of the last government offer, the parties acknowledged that an impasse had been reached in negotiations and that an alternative process was required if settlement was to be achieved. The parties developed a procedure involving an independent panel who would make recommendations on the terms of settlement. Terms of Reference for the panel were agreed, and the proposal for an 'alternative disputes resolution process' was put to PPTA members for ratification. The proposal was supported by members, leading to a withdrawal of most of the industrial action including a one-day strike planned for 26 July.
As far as the panel is aware, this form of dispute resolution is unprecedented in the state sector.
It should be stated that the negotiations had made some progress, as reflected in the fact that the parties had reached agreement in principle on a number of the issues that would be part of a settlement package. These are identified later in the panel's recommendations.
Terms of Reference
The full Terms of Reference are attached as Appendix 1. The Terms of Reference defined the principles on which the process was to be based, the key elements of the proposals made by the parties for settlement that the panel would examine, the process to be followed, the timeline, and the principles that would guide the panel in assessing the possible terms of settlement. Important points to note included:
- the non-binding nature of the recommendations. It was recognised that PPTA members would be required to ratify any potential agreement (refer section 51 of the Employment Relations Act 2000). Equally, it was recognised that the government would need to consider any budgetary or flow-on implications. Subsequently, the government publicly signified that it would be bound by the panel's recommendations.
- the establishment of the Ministerial Taskforce on Secondary Teacher Remuneration to consider longstanding issues;
- the fact that the panel's recommendations were not to be constrained by the positions taken by either parties;
- that the proposed term of settlement was to be to 30 April 2003;
- that both parties were to be present for any hearings or submissions and were able to be questioned by both the panel and the other party to the dispute;
- that recommendations were to be made within three weeks; and
- that the guiding principles for the panel were to be those of fairness and equity, as seen from the perspective of both the PPTA and the government.
The Process
The panel commenced its work on 29 July when the Ministry of Education presented its opening submission with supporting material. The PPTA presented its submission with supporting material on 31 July. Both parties requested an opportunity to respond formally to each other's submissions, and this took place on 7 August.
The panel carefully considered the submissions and responses of the parties, and proceeded to define different approaches to settlement. This proved a challenging task, particularly given that many of the avenues for settlement had been canvassed if not exhausted.
In considering the submissions, the panel came to the view that it would be in everyone's interests to have a period of stability in employment relationships in the secondary sector beyond 30 April 2003. The panel noted in particular the complexity of the issues to be addressed by the Ministerial Taskforce on Secondary Teachers' Remuneration, and doubted that they could be resolved satisfactorily in the short time available before the commencement of the next bargaining round. Indeed, the panel saw a very real risk that consideration of these important long-term issues could be overtaken by the immediacy of pay bargaining.
The panel accordingly presented its interim recommendations to the parties on 12 August, and sought concurrence from them to vary the terms of reference to allow for a settlement through to 30 June 2004. Both parties agreed to this.
The Ministry of Education and the PPTA responded formally to the panel's interim recommendations on 14 August. The panel took careful account of the responses in formulating its final recommendations.
B. The Guiding Principles
As indicated above, the Terms of Reference state that 'the guiding principles for the panel in coming to its recommendation are the principles of fairness and equity.' The principles of fairness and equity are defined from the perspective of both the PPTA and the government.
'For the PPTA, these involve fair recognition of teachers' work and workload and establishing stability and certainty for state secondary education.
For the government, these involve the need to meet a number of recruitment, retention and workload concerns within the secondary sector balanced against the importance of budgetary concerns and the impact of any flow-on to the rest of the education sector and the wider state sector'.
In keeping with the principles of fairness and equity and the parties' perspectives on these, the panel separately considered the following criteria in arriving at its recommendations:
- the need to recruit and retain quality teachers;
- teachers' work and workload;
- the need for stability and certainty for secondary education;
- cost; and
- potential flow-on to the rest of the education sector and the wider state sector.
These are commented on in turn.
Recruitment and Retention
Whilst there was some debate between the parties over the extent of the recruitment and retention difficulties currently and in the immediate past, there was agreement that through to 2007 the demographic bulge of children moving into secondary education would lead to a significant increase in demand for secondary teachers. On the supply side, the panel noted that the teacher workforce was rapidly aging and largely 'bunched' at the top of the scale. For these reasons, the panel concluded that the principle issue confronting secondary education was the recruitment and retention of quality teachers.
This conclusion significantly influenced the panel in arriving at its recommendations. In particular, the panel was concerned that its recommendations were coherent in terms of the longer-term needs of secondary education and this required the panel to depart from a short-term 'quick fix' approach.
The panel accordingly formed the view that the structure of the package that was developed by the parties in the course of their negotiations gave the wrong messages when considered against the recruitment and retention needs of the secondary sector. In particular, the panel saw the reliance on an NCEA allowance that terminated at the end of the 2004 school year as a mechanism for delivering increased pay as being at odds with the recruitment and retention needs of the sector. It could also develop into a point of contention in the future as the PPTA might well seek to incorporate the allowance into the base scale, and the NZEI might also seek an equivalent payment for its members (in all probability contemporaneously).
The panel acknowledges the steps already taken by the government to address the recruitment and retention issue, such as the scholarships for prospective teachers of specific subjects, together with various initiatives already agreed in principle by the parties.
Teachers' Work and Workload
There is general recognition that the workload of secondary teachers has increased over the past decade in common with other groups. However, the introduction of a radically different approach to teaching and particularly assessment as a result of preparation for and the implementation of NCEA has caused a significant increase in teacher workload. The suggestion by PPTA for a review of secondary teacher workload with a view to eliminating unnecessary effort has considerable merit. Equally, the panel acknowledges the progress made by the parties in negotiating non-contact time provisions, the time allowance for year two beginning teachers, and the initiatives recently announced by the government to ameliorate workload arising from NCEA.
The panel acknowledges in particular the increased workload of HOD's in planning for and overseeing the implementation of NCEA.
Whilst the panel has taken into account the increased workload of teachers in arriving at its recommendations, it has incorporated compensation for this in the salary scale rather than as a separate allowance.
The Need for Stability and Certainty in Secondary Education
The protracted nature of this dispute has inevitably led to considerable instability and uncertainty in secondary education for all concerned - teachers, pupils and their parents, and boards of trustees.
The panel is strongly of the view that the secondary sector needs an extended period of stability in employment relationships beyond that envisaged in the original Terms of Reference. This would allow time for the parties to address the longer-term issues to be considered by the Ministerial Taskforce on Secondary Teacher Remuneration.
In particular, an adequate time to further consider and resolve recruitment and retention issues in the longer-term will significantly contribute to stability and certainty.
As mentioned above, this was the major reasoning behind the panel seeking a modification of its Terms of Reference to allow for a settlement through to 30 June 2004.
Cost
The panel was very conscious of the cost of its recommendations and has been careful to phase the adjustments to salaries in a way that minimized the immediate impacts in the 2001/2002 and 2002/2003 financial years. The panel has also been concerned to align the bargaining round with the government's financial year to assist with planning in the future.
The panel acknowledges that the costs of its recommendations are significant from 2003/4 onwards. However, the panel believes that the benefits that will flow from its recommendations in terms of enhanced recruitment, retention, stability and certainty in the secondary sector make this additional expenditure well worthwhile for the government and the wider community.
Flow-on
The panel was also very conscious of the potential flow-on effects of its recommendations both to the rest of the school sector and to other groups in the wider state sector.
In regard to rest of the school sector, any changes to the salary scale in the secondary teachers' collective agreement or across-the-board allowances automatically flow to primary teachers. The panel has sought to contain the immediate effects of this through the quantum of the recommended base salary increases, the phasing of these increases, and specific targeting, on recruitment and retention grounds, of new entry and maximum steps.
In regard to the wider state sector, the panel is strongly of the view that its recommendations target issues that are specific to the secondary school sector, notably:
- the impact of the very significant and predictable growth in schools rolls as a result of the demographic 'bulge' of children moving through to secondary education. The demand for secondary school teachers' will increase significantly through to 2007, necessitating much higher recruitment and retention rates over this period than has applied in the immediate past; and
- the impact on workload of teachers of the radically different approach to teaching and assessment inherent in the NCEA.
For these reasons, the panel would reject any argument that its recommendations have established a precedent for forthcoming negotiations in the wider state sector.
C. The Recommended Settlement Package
a) Matters Agreed
The panel endorses the following elements that have been agreed in principle by the parties for inclusion in a settlement package, namely:
1. the non-contact time provisions;
2. the time allowance of 0.1 (2.5 hours per week) for Year 2 Beginning Teachers;
3. the High Priority Teacher Supply Allowance (HPTSA);
4. increases in Maori Immersion Teacher allowances;
5. the additional 5 study awards for teachers who are Maori;
6. the refresher leave provisions; and
7. improvements to the removal and transfer expense provisions.
b) In respect of the outstanding matters in dispute, the panel recommends:
1. base salary adjustments as follows: 2% with effect from 11 July 2001, an additional 1.5% adjustment from 10 July 2002, and an additional 3% from 9 July 2003;
2. an expiry date for the collective agreement of 30 June 2004;
3. a progressive increase in the value of management units to $2900 by 5 February 2003 (the first pay period of the school year) and to $3000 by 9 July 2003. The increase in the value of the management units is slightly higher than the base salary increases;
4. a new entry level for a person entering the service with a minimum qualification of a three year university Bachelor's degree together with a recognized teaching qualification (eg. Diploma of Teaching). The entry point will be step 7 of the scale rather than step 6 with effect from 5 February 2003;
5. as a consequence of the new entry level (4 above) and with effect from 5 February 2003, all fulltime and part-time permanent teachers, fulltime and part-time long-term relieving teachers, and teachers in fixed term positions appointed for two or more school terms, who are employed as at 5 February 2003 and who have a university Bachelor's degree together with a recognised teaching qualification will qualify for a salary increment of one step, subject to having met the appropriate level of professional standards at their last assessment; this increment is in addition to the increment they would normally receive, subject to having met the appropriate level of professional standard, on their anniversary date of service for pay progression purposes. (For many qualifying teachers both increments will in practice be received on the same date).
Teachers who do not qualify for the additional increment will receive their normal increment in the usual way; and
6. a new step 14 of $54,750 will be added to the scale with effect from 5 February 2003. This new step is available only to teachers with a university Bachelor's degree together with a recognised teaching qualification who met the appropriate professional standard at their last assessment. The 3% adjustment which applies from 9 July 2003 increases the value of the new step 14 to $56,392.
Salary Scale
The revised salary scale is as follows:
|
|
Current Salary
|
2.0% from 11/7/01
|
1.5% from 10/7/02
|
Double Increment 05/02/03
|
3.0% from 01/07/03
|
|
STEP
|
$
|
$
|
$
|
$
|
$
|
| 1 |
23,000 |
23,460 |
23,812 |
|
24,526 |
| 2 |
24,000 |
24,480 |
24,847 |
|
25,592 |
| 3 |
26,000 G1E |
26,520 |
26,918 |
|
27,726 G1E |
| 4 |
28,000 G2E |
28,560 |
28,988 |
|
29,858 G2E |
| 5 |
31,000 |
31,620 |
32,094 |
|
33,057 |
| 6 |
34,000 G3E |
34,680 |
35,200 |
|
36,256 G3E |
| 7 |
35,000 G4E |
35,700 |
36,236 |
|
37,323 G3+E |
| 8 |
36,500 G5E |
37,230 |
37,788 |
|
38,922 G4E |
| 9 |
38,500 |
39,270 |
39,859 |
|
41,055 G5E |
| 10 |
41,500 G1M |
42,330 |
42,965 |
|
44,254 G1M |
| 11 |
44,500 G2M |
45,390 |
46,071 |
|
47,453 G2M |
| 12 |
48,600 |
49,572 |
50,316 |
|
51,825 |
| 13 |
50,300 G3M |
51,306 |
52,076 |
|
53,638 G3M |
| 14 |
|
|
|
54,750 |
56,392 G3+M |
|
Management Units
|
2750 |
2805 |
2847 |
2900 |
3000 |
| G1 |
No degree or recognised equivalent |
| G2 |
Two-thirds of a degree or recognised equivalent |
| G3 |
3 year Bachelor's degree or recognised equivalent |
| G3+ |
3 year Bachelor's degree or recognised equivalent plus one year's teacher training or recognised equivalent |
| G4 |
4 year Honours degree or recognised equivalent |
| G5 |
5 year Master's degree or recognised equivalent |
| E |
Entry point salary |
| M |
Maximum salary |
G 3 Equivalent Teachers
The panel spent some time considering the position of a group of teachers who do not necessarily hold degree qualifications but who have at some point in the past been granted degree-equivalence on the basis of their qualifications, training and/or service.
In thinking about this matter, the panel acknowledges the equity of honouring arrangements that have been entered into in the past in good faith. On the other hand, the panel's recommendations are directed at increasing the qualification level of all teachers within the secondary service, and providing incentives for this to occur.
Because of uncertainties about the extent and nature of this group, the possible flow-on effects, and the need for further specific technical information, the panel was not in a position to make a definitive recommendation at this point. It should be noted in this respect that there is time to resolve this matter post-ratification. The new entry and maximum steps do not apply until 5 February 2003.
The panel therefore recommends, in the event that the recommended settlement package is ratified, that the parties meet in good faith to consider and resolve this issue. The panel would be prepared to reconvene if the parties are unable to find a resolution.
Conclusion
Returning to the guiding principles, the panel believes that the settlement package arising from its recommendations is fair and equitable to both teachers and the taxpayer:
- it creates strong incentives for the recruitment and retention of highly qualified staff;
- it fairly compensates for the additional workload that teachers are carrying;
- it will create an extended period of stability and certainty in employment relationships in the secondary sector, and will allow adequate time for the Ministerial Taskforce on Secondary Teachers Remuneration to consider important long-term issues;
- it phases in adjustments to salaries to minimize the immediate impact in the 2001/2002 and 2002/2003 financial years;
- it limits as far as possible the flow-on to the rest of the school sector, and cannot be seen as establishing a precedent for the wider state sector.
c) Some Further Observations
In the course of its deliberations, the panel has identified a number of important issues which, although outside the scope of its Terms of Reference, warrant in the panel's view further consideration by the parties. The Ministerial Taskforce on Secondary Teacher Remuneration could appropriately address these issues.
The Bargaining Process
Over the past decade, virtually every round of salary negotiations in the secondary sector has been protracted and difficult, and this has been most unsettling for teachers, boards, pupils and their parents. Disruption in secondary schools can significantly affect the education of pupils and possibly have long-term effects on a pupil's educational attainment.
The panel recommends that the Ministerial Taskforce on Secondary Teacher Remuneration review the experience of pay bargaining in the secondary sector over the past decade, and assess whether changes are necessary to the pay fixing process.
Student loan re-payment and retirement provisions
The panel is aware of the government's broader policies directed at reducing the level of student debt and encouraging a higher level of retirement savings. Indeed, the panel seriously considered whether incentives targeted at achieving these outcomes in the secondary sector should be part of this settlement package, but concluded that the Ministerial Taskforce on Secondary Teacher Remuneration should more appropriately address these.
The panel saw considerable advantages in providing such incentives in the secondary sector. Incentives to encourage an accelerated re-payment of student loans would have very positive effects on recruitment and retention. In similar vein, incentives to save for retirement have considerable attractions given the aging nature of the teacher workforce.
The panel recommends that the Ministerial Taskforce on Secondary Teacher Remuneration explore the possibility of creating incentives to encourage accelerated re-payment of student loans and higher levels of retirement savings.
Exit Arrangements
The panel was struck by the aging nature of the secondary teacher workforce (an average age of 49 years), with over 70% of teachers being bunched at the top of the scale. This clearly has implications for supply, and the overall imperative given the growth in demand for secondary teachers over the next few years is to retain experienced teachers.
Notwithstanding, there will inevitably be a number of teachers who have been in the profession a long time, feel burnt out, but are required to serve their time to access full superannuation entitlements. Retaining these teachers in the service serves no good purpose for the teachers, schools or pupils.
The panel recommends that the Ministerial Taskforce on Secondary Teacher Remuneration should re-visit the question of exit provisions for secondary teachers. This issue was canvassed and reported on by the Schools Consultative Committee in the mid 1990's, but there does not appear to have been any progress on this matter since.
Heads of Department
As indicated previously, Heads of Department, who are essentially each school's curriculum, teaching and assessment experts, are carrying a particularly heavy workload arising from the implementation of NCEA. There is anecdotal information that senior teacher's are becoming reluctant to take on the role of HOD's, and that a number of schools have recently lost experienced middle managers.
The panel has addressed this issue to a limited extent in its recommendations. However, it recommends that the Ministerial Taskforce on Secondary Teacher Remuneration review the workload of HOD's and consider strategies directed at ensuring that schools have adequate numbers of high quality HOD's in the foreseeable future.
D. Summary of Recommendations
a) The panel recommends to the parties the following package as a basis for settlement of the secondary teachers collective agreement:
Matters agreed in principle by the parties:
1. the non-contact time provisions;
2. the time allowance of 0.1 (2.5 hours per week) for Year 2 Beginning Teachers;
3. the High Priority Teacher Supply Allowance;
4. increases in Maori Immersion Teacher allowances;
5. the additional 5 study awards for teachers who are Maori;
6. the refresher leave provisions;
7. improvements to the removal and transfer expense provisions;
b) Outstanding matters
8. base salary adjustments of 2% from 11 July 2001, 1.5% from 10 July 2002, and 3% from 9 July 2003;
9. an expiry date for the collective agreement of 30 June 2004;
10. a progressive increase in the value of management units to $2900 by 5 February 2003 (the first pay period of the school year) and to $3000 by 9 July 2003;
11. a new entry level for a person entering the service with a minimum qualification of a three year University Degree and a recognized teaching qualification. From 5 February 2003, the entry point will be step 7 on the scale rather than step 6;
12. as a consequence of the new entry level (11 above)and with effect from 5 February 2003, all fulltime and part-time permanent teachers, fulltime and part-time long-term relieving teachers, and teachers in fixed term positions appointed for two or more school terms, who are employed as at 5 February 2003 and who have both a recognized teaching qualification and a University Bachelors Degree or better, will qualify for a salary increment of one step, subject to having met the appropriate level of professional standard at their last assessment; this increment is in addition to the increment they would normally receive, subject to having met the appropriate level of professional standard, on their anniversary date of service for pay progression purposes;
13. a new step 14 of $54,750 will be added to the scale with effect from 5 February 2003. This new step is available only to teachers with both a recognized teaching qualification and a University Bachelors Degree or better who met the appropriate level of professional standard at their last assessment. The 3% adjustment which applies from 9 July 2003 increases the value of new step 14 to $56,392; and
14. in the event the recommended settlement package is ratified, that the parties meet in good faith to consider and resolve the issue of whether 'G 3 equivalent teachers' should access the additional increment payable on 5 February 2003 or the new step 14. The panel is prepared to reconvene if the parties are unable to find a resolution.
c) The panel recommends that the following matters that are not part of the settlement package be referred for the attention of the Ministerial Taskforce on Secondary Teacher Remuneration:
1. a review of the experience of pay bargaining in the secondary sector over the past decade for the purpose of assessing whether changes are should be made to the pay fixing process to facilitate a speedy and non-disruptive resolution of disputes;
2. the possibility of creating incentives to encourage accelerated re-payment of student loans and higher levels of retirement savings;
3. the desirability of including exit provisions in the secondary teachers collective agreement to provide options for teachers who have become burnt out and who wish to leave the service; and
4. a review of the workload of HOD's for the purpose of developing strategies directed at ensuring that school's have adequate numbers of HOD's in the foreseeable future.
Signed:
Dame Margaret Bazley DNZM, Chair
Bruce Murray, Member
Doug Martin, Member
Dated: 19th August 2002
Acknowledgements
The panel was most impressed with the professional manner in which both parties approached the alternative disputes resolution process. Both obviously devoted a considerable amount of time and resource to the exercise and produced very high quality submissions.
The panel also acknowledges the invaluable technical advice provided by Aaron Crawford during the course of its deliberations. Aaron was asked to model a wide range of scenarios for the panel and demonstrated considerable patience and forbearance.
Appendix 1:
Alternative Dispute Resolution Terms of Reference
Introduction
This paper sets out a proposal for an alternative dispute resolution mechanism to facilitate settlement of the Secondary Teachers' Collective Agreement. The proposal has taken the following factors into account:
1. many longstanding issues and issues which have emerged will be part of the agenda for the Ministerial Taskforce on Secondary Teacher Remuneration;
2. the need for a mechanism that will consider the issues and report in the shortest possible time frame that will allow adequate consideration of the issues in dispute; and
3. recognition that any recommendation cannot be binding on either party as the PPTA members will need to ratify any potential agreement emerging from the recommendation in light of the adequacy of recognition of secondary teachers' work and Government will need to consider any budgetary or flow on implications.
Proposal
It is proposed that an independent panel examine the issues and make a recommendation to the parties. The panel would hear submissions from both parties before reaching its recommendation. The panel will consider the guiding principles as articulated by each party. The panel's recommendation is unconstrained and does not necessarily need to reflect the position taken by either party at the hearing. The panel will consider the respective claims, offers and settlements made or reached by the parties. The panel will examine key elements of the proposals by the parties to resolve the dispute. The panel will therefore examine the appropriate level of:
- the proposed increases in base salary and unit rates;
- the backdating of base salary and unit rates;
- the NCEA Implementation units/payments;
- the non-contact time provisions;
- the time allowance of 0.1 (2.5 hours per week) for year 2 beginning teachers;
- the High Priority Teacher Supply allowance;
- increases in Maori Immersion Teacher allowances;
- the additional 5 study awards for teachers who are Maori;
- the refresher leave provision; and
- improvements to the removal and transfer expenses provisions.
The following will be taken into consideration by the panel but will however, be outside the issues which form part of the recommendation by the panel:
- The proposed term which is from settlement to 30 April 2003; and
- The proposed improvements to staffing schedules.
Composition of Panel
It is proposed that the panel be comprised of:
Dame Margaret Bazley;
Doug Martin; and
Bruce Murray.
Process to be followed
The panel will conduct its examination along the following lines and reach its recommendation by consensus.
Step one: the hearing of opening submissions from the parties. Both parties will also be present for these hearings and submissions will be able to be questioned by both the panel and the other party to the dispute. In the event that the panel requires further information necessary to its deliberations, it will obtain this through the parties.
Step two: the panel will consider the issues placed before it and will make an interim recommendation. This recommendation will then be communicated to the parties via a one-day hearing at which the parties may raise any questions of interpretation with the panel.
Step three: the parties will make final submissions to the panel after receiving the interim recommendation. The same procedures will apply to these submissions as to the opening submissions.
Step four: the panel will make its final recommendation after receiving the final submissions from the parties.
Timeline
It is envisaged by the parties that the panel will complete its deliberations and make its final recommendation within three weeks.
The guiding principles for the panel for assessing the possible terms of settlement
The guiding principles for the panel in coming to its recommendation are the principles of fairness and equity.
For the PPTA, these involve fair recognition of teachers' work and workload and establishing stability and certainty for state secondary education.
For the Government, these involve, inter alia, the need to meet a number of recruitment, retention and workload concerns within the secondary sector balanced against the importance of budgetary concerns and the impact of any flow-on to the rest of the education sector and the wider state sector.