Wage relativity drops

by Kerri Carr

Public school teachers' wage relativity has been falling for decades, the Industrial Relations Commission heard on November 4.

Centre of Full Employment and Equity director and economics Professor at Newcastle University William Mitchell, who specialises in labour economics with expertise in the area of wages and employment research, told the Commission that the relevant wage structure in some way is a summary statement of status within society.

In his affidavit, Professor Mitchell said: "The decline in wage relativities for the publicly employed teaching profession helps to undermine the status of the teaching profession in the eyes of the community which given the public good aspect of education does not reflect the public interest."

The Department of Education and Training raised an objection to the statement.

His affidavit said: "Not only are teachers' wages falling in comparison to all full-time workers in NSW, they are falling in comparison to specific occupations (professional occupations) that are the peers [same skill group] of 'School Teachers'.

"There has been a significant loss in the relative wage position of classroom teacher top of scale salary (CRT top) in comparison to the average weekly total earnings (AWTE) of full-time male employees in NSW," the affidavit also said. He noted the decline in the relativity of over 35 percentage points from March 1981 to February 2003.

"The AWTE (male) of 'Professionals' has increased at a greater rate than the AWTE (male) of school teachers since 1986. 'School teacher' AWTE (male) was $23.53 (2002) less than the AWTE (male) 'Professionals' This gap has increased almost every year to eventually reach $158.91 (in 2000) and $154 (in 2002)."

Professor Mitchell's affidavit also said the remuneration of many other occupations was understated because "the teaching profession employed by government does not receive additional employment benefits such as motor vehicles, child care payments, health benefit payments, school fee payments, travel payments, low interest loans or share options".

"When these additional remuneration benefits are factored into assessing the position of public education teachers relative to other professions of equal skills level, the public school teaching profession receives even less remuneration than is reflected by the analysis of the AWTE figures," his affidavit added.

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Last Modified: 15 Nov 2005