Victorian Teachers Discussion

Translation of salary rises in the proposed new agreement taking account of movements in the CPI.

Old agreement	New-agreement	May 11 2208 rise	Jan 2009	Jan 2010	Jan 2011	Net % movement by 2011 #
E3a 66,267	E4 75,500	13.6	2.9%	2.9%	2.9%	rise of 5.3
E3 65,414	E3 68,619	4.9	2.9%	2.9%	2.9%	fall of 3.4
E2 63,447	E2 66,556	4.9	2.9%	2.9%	2.9%	fall of 3.4
E1 61,539	E1 64,554	4.9	2.9%	2.9%	2.9%	fall of 3.4
A5 59,401	A5 62,312	4.9	2.9%	2.9%	2.9%	fall of 3.4
A4 57,755	A4 60,585	4.9	2.9%	2.9%	2.9%	fall of 3.4
A3 56,154	A3 58,906	4.9	2.9%	2.9%	2.9%	fall of 3.4
A2 54,598	A2 57,273	4.9	2.9%	2.9%	2.9%	fall of 3.4
A1 53,084	A1 55,686	4.9	2.9%	2.9%	2.9%	fall of 3.4
G4 50,184	G2 52,643	4.9	2.9%	2.9%	2.9%	fall of 3.4
G3 48,793	G1 51,184	4.5	2.9%	2.9%	2.9%	fall of 3.8
G2 47,441
G1 46,127		11.0 *1	2.9%	2.9%	2.9%	rise of 2.7

# This estimate aims to differentiate between ‘money’ and ‘real’ wages. That is, the changes in salaries after movements in the CPI have been taken account of.

In this case they are the following: (1) Our last pay rise was in October 2006 and the CPI has risen by about 5% since. Therefore we needed to gain 5% to put us back in the position we were 18 months ago. (2) Currently inflation is running at slightly over 4% p.a. While it if difficult to estimate future CPI rises, it is likely that the combined rises over the three years duration of this agreement will be about 12%. Further increases in salaries of this magnitude will be necessary to maintain real wages.

Hence calculation for the top of the scale is: rises 13.6 + 2.9 +2.9 + 2.9 = 22.3% inflationary effects 5 + 12 = 17%. Net rise in real wages 5.3%

It is important to note that teachers can make no further pay claims for the duration of this proposed agreement.

BK May 19 2008

1 This classification will no longer exist and teachers will begin on the new G1 which equates with an 11% pay rise.