New Zealand teachers have one of the lowest starting salaries in the developed world

The OECD's Education at a Glance report 2009 shows that New Zealand teachers have one of the lowest starting salaries in the developed world but work some of the longest hours.

• Of 29 countries in the survey New Zealand had the fourth worst starting salary.
• After 15 years' experience New Zealand secondary teachers have a cost of living/exchange rate-adjusted (PPP) salary which is 17% lower than the OECD average.

Future proofing the secondary teaching profession

What we as a profession have to consider is what happens to teacher supply in the very near future when the economy recovers and new jobs and higher wages are again easily available outside teaching. A short term advantage gained by the recession can quickly revert to a major teacher shortage.

We are asking 4% to ensure that we have prepared for the inevitable counter-supply pressure which will (if not adequately anticipated) lead to another sudden and severe secondary teacher shortage as soon as next year.
 
In a competitive international market for secondary teachers we are also at risk of losing more teachers overseas if we do not maintain the relativity of our salaries internationally. We are already significantly behind other similar countries:

Distorted and politically motivated picture of teacher salaries

"The Government has carefully chosen its time period for commenting on teacher salaries to support what is a traditional policy of National governments to neglect secondary teacher salaries in the state sector until driven by a publicly unmanageable teacher supply crisis to a minimal response.

By using a low point as a starting reference (2000) and looking only at the 'recovery' period underpinned by the recommendations of the Bazely report and the (often reluctant) adherence to them by successive Labour governments the current Minister of Finance is presenting a distorted and politically motivated picture of teacher salaries. And he's not even correct in the critical figure he uses. At this stage in 2000 the top of scale rate was $50,300. This means that the increase over the last 10 years has been 38%, not the 50% he claims. We hope the Finance Minister is getting at least some other numbers right!"
 
Some context might help to present a more accurate picture than the Minster's carefully selected sound bite.

The attractiveness of secondary school teacher salaries depends on how the $'s compare to what could be earned outside teaching

Most teachers are paid at the top of the scale rate. This is the 'standard' rate for salary comparison and is the rate for the basic teaching job. It is what most graduates could expect to be paid if they come into teaching and what most teachers thinking of leaving for other better paying jobs are assessing their options against.  The relative attractiveness of teaching salaries dependent largely upon how it compares with other wage and salary that could be earned in other jobs outside teaching.

The top salary for a secondary teacher was 1.73 times the average wage in 1980

In 1980, under the Muldoon Government, the top of scale salary for a secondary teacher was 1.73 times higher than the average wage. In 1985 this rose to 1.93 times the average wage under the Lange Government.

The fall of the teacher salary rate to 1.32 times the average wage created a damaging teacher shortage in the mid-90s

During the 1990s, a succession of national governments (in which English was a member) cut secondary teacher numbers (1991/2 and 1994/5) and allowed the secondary teacher salary rate to fall to a low of 1.32 times the average wage, creating the damaging teacher shortage in the mid-90's. They were forced into a temporary salary boost in 1996, lifting the TBS to 1.43 times the average wage, still significantly below the comparative rate in the Muldoon years. From then they allowed the relative rate to steadily fall again.  

When Labour took control of the front benches in 1999 it was faced with ongoing and systemic teacher supply problems. A pitiful pay offer in 2001 completely misread the teacher supply situation and led to widespread industrial action when schools found themselves unable to attract or retain staff at that pay rate.  An independent panel chaired by Dame Margaret Bazely was convened to look at the evidence provided by both sides in the dispute and recommended a staged 13% increase in the rate.

The Ministerial Taskforce on Secondary Teacher Pay and Remuneration recommended an objective salary mechanism

The subsequent Ministerial Taskforce on Secondary Teacher Pay and Remuneration (2003) - also chaired by Dame Margaret - recognised the teacher supply problems continued and recommended (amongst other things in a 10 year plan to improve the attractiveness of teaching as a profession) that an objective salary mechanism should be applied to prevent teacher salaries from again falling behind and limiting the need to take industrial action to keep salaries current. A steady increase in rates to maintain relativity with other wage and salaries was seen as preferable to the boom-bust sequence of low or no increases leading to critical teacher shortages, responded to too late by a one-off boost to salaries and then back to a phase of negligence.  
By 2004 stage salaries were only 1.47 times the average wage, significantly below the relative wage rate that the Bolger government inherited.

8.8% increase required in the current top pay rate to restore its value relative to the pay teachers were receiving in 1985. 

Since 2003 salaries have been edging back towards levels needed to recruit and retain adequate numbers of qualified secondary teachers. The TBS is about 1.57 times the average wage with the 2009 increase. It would require an increase of 10% immediately to bring the normal teacher salary back to the relative level Muldoon left it at.    
If we put relative wage rates to one side and look at the value of the top of the normal teacher salary over time, the inflation rate from December 1985 to December 2009 is 121%, while the normal pay rate increased by 102%. It would have required an 8.8% increase in the current top of scale rate in December 2009 just to restore its value relative to the pay teachers were receiving in 1985.

 Table: Year to year changes to standard secondary teaching salary (TBS) 1980 to 2009