Rotorua principals are calling the latest Government offer a "complete lack of respect", following the nationwide NZEI primary principals' choice to reject it.
Primary principals who belong to the union voted to decline the offer, worth more than $64 million, following a ballot last week.
The increase was a poke in the eye for Rotorua Westbrook School principal Colin Watkins.
He said the lack of movement for principals could cause significant implications on the quality and future of education in New Zealand.
"It has the potential to be the death of rural education in New Zealand.