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Wednesday, May 21, 2008

Spin v Reality

The new Teachers Agreement –


1. The Spin:


“I am delighted and relieved - we have gone from being the lowest paid teachers in the country to the highest" – Mary Bluett, Union President http://bendigo.yourguide.com.au/news/local/news/general/teachers-win-rise/374078.aspx


The Reality for teachers in 2008 (as best as can be ascertained):


To put this in perspective – pay for a 9th year teacher in Albury in 2008 is $75,352, in Wodonga it is $63,311.


Some Victorian teachers will be more than $12,000 or 16% worse off than their NSW counterparts in 2008.

2. The Spin:


"The focus of the AEU throughout this negotiation period has been to deliver an outcome that increased our ability to attract quality teachers to the profession and to retain teachers in Victorian public schools.” - http://www.aeuvic.asn.au/news/1209963907_18806.html


The Reality (as best as can be ascertained):


Consider a Victorian teacher that is in their eighth year of teaching in 2008. Over the four years that this agreement will operate, they will be $39,794 worse off than their NSW colleagues. This comparison assumes that NSW teachers will receive a 2.71% pay rise for the next 3 years. The Victorian teacher will be even worse off if, as expected, NSW teachers receive pay increases of greater than 2.71% in their new agreement.


All Victorian classroom teachers, except those already at the top of the scale, will be worse off over the life of this agreement, compared to their NSW colleagues.


3. The Spin:


"It's a complex arrangement, but the least any teacher is going to get out of this is somewhere between five and six per cent per annum,'' - Mary Bluett. http://www.theage.com.au/news/national/teachers-chalk-up-a-big-pay-win/2008/05/05/1209839508834.html?s_cid=rss_news


The Reality (as best as can be ascertained):


Consider the government’s initial offer of 3.25% per year. All teachers will do better than that under this agreement, surely?


Yes. Take a look at those teachers currently at the top of the Leading Teacher scale, at LT2-3. They are currently paid $78,675. What if the union had “caved in” to the government’s initial offer? Following four annual 3.25% rises, the pay of these teachers would have risen to $89,412 p.a.


In the final year of the proposed agreement, following their 4.9% + 2.71% + 2.71% + 2.71% rises, the pay of these teachers will be $89,423 p.a. - a whopping $11 p.a. difference.


In 2011, the most experienced Leading Teachers will be paid 21 cents a week more than the government had originally offered. That’s an improvement of half a cent per working hour!


4. The Spin:


“Victorian teachers will become the highest paid in the nation under a new pay deal reached today by the Australian Education Union and the State Government.” – AEU website http://www.aeuvic.asn.au/news/1209963907_18806.html


The Reality:


According to the Australian Bureau of Statistics, consumer prices are currently rising by 4.2% p.a., meaning that the 4.9% rise for most teachers is a real increase of 0.7%.


The agreement locks in wage increases of 2.71% for 2009, 2010 and 2011. The Reserve Bank of Australia has predicted the Consumer Price Index will be in the range of 3% to 3.5% until mid 2010:

If we compare the pay rises in the Teachers Agreement to the wage price index (that is, rises for people in all wage-paying jobs) the pay rises look even worse:


No other union would be likely to accept 2.71% increases – until 2011 – in the current inflationary climate. For the minority of teachers that will be paid on par with their NSW colleagues in 2008, it is clear that they will be well behind again in 2009, 2010 and 2011.


In 2009-11, pay rates for teachers will barely keep pace with expected inflation and Victorian teacher wages will fall relative to other workers.





And some more things:


(1) The union is about to sell to members how much they will be better off over the life of this agreement. E.g. “If you are an Xth year teacher, you will be Y% better off per year in this agreement. Remember the government was only offering 3.25% p.a.”


But teachers should not be hoodwinked by these % comparisons. The union is including the $1000/$1500 sweetener and your incremental moves up the salary scale in the annual % increases for the wonderful new agreement. But the union fails to mention your incremental moves up the salary scale in their statements regarding the government’s original 3.25% p.a. offer.


What’s that saying about apples and oranges?


It also doesn’t figure in the fact that the union have delivered 0.00% p.a. for the first five months of 2008, when the government’s position was to give us 3.25% p.a.


(2) This document has outlined the spin from the union. Consider what the union leadership could have said:


“This agreement is not perfect. It will deliver pay parity with NSW for some teachers in 2008, but not all. Unfortunately, we have had to trade off a bigger pay rise for 2008 with pay rises in future years that will be lucky to keep pace with inflation. The government wouldn’t budge on anything better.”


Such a statement would have been disappointing to union members and less likely to produce a headline. But it would have been better than what we got - the Union President singing from the Premier’s song sheet.


(3) At a recent meeting with members, the Union Secretary described the pay deal as a “huge victory” and said “the campaign was never about restorative salary justice”. This latter statement surprised the members that had attended the Vodafone Arena rallies and heard about the fight to overturn the massive differences in pay between NSW and Victorian teachers. The Union Secretary also indicated that he was “happy to sell the agreement to members.”


Members expect spin from used car salesmen and their government. Members don’t expect spin from the organisation that we pay our dues to, the one that is supposed to be looking after our interests.


(4) And finally, why are Victorian teachers currently “the lowest paid teachers in the country”, Mary Bluett?


Would it be because our union leadership “sold” teachers the last agreement?


Perhaps this time, teachers won’t be so easily sold…




Brent Houghton

houghton.brent.b@edumail.vic.gov.au





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