Premier offers olive branch to teachers

A STRATEGIC backflip by the government over teachers' performance pay.

A STRATEGIC backflip by the government over teachers' performance pay yesterday has pushed the 28-month dispute over remuneration and conditions close to resolution.

Victorian Premier Denis Napthine yesterday announced that the long-running government demand that performance pay would be part of the new enterprise bargaining agreement had been taken off the negotiating table.

Dr Napthine said the government's move to jettison the performance pay demand during this round of EBA negotiations was an act of goodwill designed to assist enterprise bargaining negotiations.

While the militant Australian Education Union said the olive branch symbolised only a "small" concession, the government was confident it would lead to a breakthrough within days or weeks.

If this occurs, this would become the latest political boil that helped kill Ted Baillieu's leadership to have been lanced.

"We now look to the AEU to embrace that same approach in order to reach a productive and responsible outcome that is good for students, teachers, parents and Victorian taxpayers," Dr Napthine said.

"The government has made a major move in the spirit of compromise and good faith to settle this longstanding matter."

The AEU is seeking a 4.2 per cent annual pay rise over three years, which is markedly lower than its original ambit claim.

The government has previously insisted that any pay increases above 2.5 per cent must be offset by productivity gains.

The dispute has led to strikes, widespread bans and effective go-slows at schools across Victoria.

Bans have included restrictions on report cards and school camps.

AEU Victorian branch president Meredith Peace described the government's backdown as positive but added there was a need for more negotiations and more money on the table.

This was after the former premier Mr Baillieu had promised to make Victorian teachers the best-paid in Australia.

"We now need to see them being prepared to discuss the salaries issue," Ms Peace said.