Circular 2023/07 - Settlement of the Area School Principals' Collective Agreement

Date 2 August 2023 | Circular 2023/07 | Category Employment Relations

This circular is about the details of the recent settlement of the Area School Principals' Collective Agreement 2023-2025. 

This circular does not replace any other.

It is intended for Presiding Members of School Boards of all state and state-integrated primary schools.

For more information contact the New Zealand School Trustees Association about human resource issues generally on 0800 782 435 or email eradvice@nzsta.org.nz. You can also email the Ministry of Education's Employment Relations Unit: employment.relations@education.govt.nz if you have questions about the settlement or the new collective agreement. All collective agreements for school staff can be found on the Ministry's website: www.education.govt.nz/collective-agreements/.

The actions needed are to: 

• Note the details of this settlement, including the new rates of pay that are provided for principals working in positions covered by the new collective agreement.
• Note that Education Payroll will implement the settlement by 3 October 2023.
• Note that a one-off gross payment of $2,000 will be made to all NZEI Te Riu Roa and PPTA Te Wehengarua members employed as at 27 July 2023, pro-rated for part-time principals.
• Note that a further one-off gross payment of $1,500 will be made to all area school principals covered by this agreement employed as at 3 July 2023, pro-rated for part-time principals. Non-union member principals must have signed the updated individual employment agreement on or before 22 September 2023 in order to receive this payment.
• Note that a one-off gross payment of $1,000 will be made to all NZEI Te Riu Roa and PPTA Te Wehengarua members employed as at 1 December 2023, pro-rated for part time principals.
• Note that a one-off gross payment of $710 will be made to all NZEI Te Riu Roa and PPTA Te Wehengarua members as at 27 July 2023, calculated to provide a net amount broadly equivalent to the cost of renewing a teaching practicing certificate. This will be paid in full for eligible part-time principals. 
• Review and understand how sick leave entitlements for area school principals have changed.
• Note and enable principals covered by this agreement to have access to professional coaching and wellbeing support of up to $6,000 in each of 2023 and 2024. Guidance and policies for the use of this fund will be communicated to schools through NZSTA and published on the Ministry website.
• Review and understand where the increases to immersion levels 1 and 2 of the Māori Immersion Teaching Allowances (MITA), and introduction of immersion level 3, from 27 July 2023 apply to teaching principals.
• Review and understand the introduction of a Pacific Bilingual Immersion Teaching Allowance (PBITA) for teaching principals in immersion levels 1 and 2 from 28 January 2024.
• Review and understand the introduction of a Cultural Leadership allowance for principals who are leading kura and schools with at least Level 1 or Level 2 immersion programmes (te reo Māori and/or Pacific language immersion) from 28 January 2024.
• Review and understand the new sabbatical positions available from the start of the 2024 school year.
• Become acquainted with changes to the clause wording concerning secondments.

We will publish guidance about any significant changes including the application of new allowances prior to these being implemented in the 2024 school year.

Introduction

On 27 July 2023, the Area School Principals’ Collective Agreement 2023-2025 was settled and ratified by members of the NZEI Te Riu Roa and PPTA Te Wehengarua.

The term of the agreement is from 3 July 2023 – 2 July 2025.

This circular provides a summary of the changes and new provisions agreed in the settlement.

The full collective agreements can be downloaded from the Ministry of Education’s website: www.education.govt.nz/collective-agreements/(external link) and printed copies will be available from the New Zealand School Trustees Association (NZSTA).  

Key Features of the Settlement 

Remuneration

New rates for the roll-based component of principals’ remuneration have been agreed, effective from 3 July 2023.

These rates are outlined in the table below. They comprise a 6% increase from 3 July 2023, a second increase of 3% on 3 July 2024 and a further increase of 1.8% on 2 December 2024.

This translates to rates that include a 11.1% increase for all principals, with the improvements for principals employed in U1 and U2 grade equating to 20.4%.

As member-only benefits:

• $710 payable to each NZEI TRR and PPTA Te Wehengarua member principal who is bound by this Agreement as at 27 July 2023 (date of ratification). This has been calculated to provide a net amount broadly equivalent to the cost of renewing of a teaching practicing certificate. This will be paid in full for eligible part-time principals.  
• $2,000 payable to each NZEI TRR and PPTA Te Wehengarua member principal who is bound by this Agreement as at 27 July 2023 (date of ratification). This is pro-rated for eligible part-time principals.
• $1,000 payable to each NZEI TRR and PPTA Te Wehengarua member principal who is bound by this Agreement as at 1 December 2023. This is pro-rated for eligible part-time principals.

A further one-off gross payment of $1,500 payable to full-time principals employed as at 3 July 2023. This is pro-rated for part-time principals.

Replacement of Decile base payments with an Equity Index based payment

Principals in schools that fall within the top 40% of the Equity Index when it is calculated each year will receive a payment based on the Equity Index number of the school, multiplied by nine. This payment will replace the Decile based component of each principal’s remuneration.

Transitional arrangements for this change are set out in the collective agreement clause wording.

Professional coaching and wellbeing support

To support principal wellbeing, the agreement provides access to professional supervision, coaching and wellbeing support of up to $6,000 per annum in each of 2023 and 2024.

This fund will be held by the School Board and be accessed by the principal for the purposes of accessing professional coaching and support in their leadership role.

The funding will be a tagged component of the school’s operating grant from the start of October 2023. Principals will be required to submit an annual declaration to the Board no later than the last day of Term 4 regarding the use of the funds.

The Ministry has developed guidance and policies for the use of this fund, available here.(external link)

Sabbaticals

The number of paid sabbaticals awarded annually will increase from 13 to 18 from the start of the 2024 school year.  

Cultural Leadership Allowance

From 28 January 2024, a Cultural Leadership allowance of $5,000 per annum will be available to principals who are leading kura and schools with at least Level 1 or Level 2 immersion programmes (te reo Māori and/or Pacific language immersion).

Secondments

Clause wording has been amended to ensure the process for seconding principals into sector roles outside of their schools is easier, more accessible, and does not disadvantage those undertaking secondments. 

Sick Leave

Changes are being made to sick leave to ensure compliance with the Holidays Act. From 28 January 2024 a principal is entitled to sick leave based on aggregate employment as follows:

Conversion from the current entitlements is set out in Schedule E of the collective agreement.

Individual Employment Agreement (IEA)

Principals who are not members of NZEI Te Riu Roa or PPTA Te Wehengarua 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.

As at 28 July 2023, the Secretary for Education has promulgated a new IEA so 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 if both the employer and the employee sign it.

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.

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.

Issued by: 

Tim Tucker, Manager Employment Relations, Te Pou Ohumahi Mātauranga | Education Workforce
Ministry of Education, 1 The Terrace, Wellington 6011
PO Box 1666, Wellington 6140, New Zealand, Phone 04-463 8000,

Email employment.relations@education.govt.nz

Last reviewed: 22 August 2023 Has this been useful? Give us your feedback