The Ministry of Education and the primary teachers and principals' union have reached an agreement on collective contracts, meaning industrial action planned for next year will not go ahead.
The settlement was agreed on Friday after months of talks between the ministry and the New Zealand Education Institute (NZEI).
If teachers and principals vote to accept the agreement, they will receive a 2.75 per cent pay increase - backdated to yesterday - plus a $300 payment.
The collective agreements for teachers and principals will expire in August 2012.
Secretary for Education Karen Sewell congratulated NZEI and ministry advocates for reaching settlement of the Primary Teachers' Collective Agreement and the Primary Principals' Collective Agreement.
"I'm delighted that settlement has been reached for each collective, and that the NZEI will recommend ratification to its members," Ms Sewell said.
Teachers and principals will vote on whether to accept the settlement over the next few weeks.
NZEI President Frances Nelson said the negotiations had been "extremely difficult" due to a number a number of sticking points.
Teachers and principals around the country expressed their frustration over the lack of progress in the negotiations by filling in timesheets and sending invoices to the Government to show how many extra hours they put into their jobs, Ms Nelsen said.
"In the end it was pleasing to finally see an offer from the ministry which better recognises the value of the work teachers and principals do," she said.
The union was pleased the ministry agreed to remove a number of counter claims in both agreements which would have undermined career development and recognition for teachers who take on extra responsibilities in schools.
For principals the settlement also goes some way towards addressing recruitment and retention problems in small rural schools by providing better practical assistance and incentives to those principals who staff them.
"Proper investment in the education workforce is the only way to support and retain quality teachers and school leaders at a time when so many go searching for better pay and conditions overseas. The government needs to make that a priority now and into the future."
Primary teachers and Govt reach settlement
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