The Victorian Government has resolved its long running pay dispute with teachers.
Enterprise bargaining negotiations between the Government and the teachers union has dragged on for 14 months.
But a deal has finally been reached the day before the Budget is released.
The Premier John Brumby says the salary of a graduate teacher will rise by about $5,000 and senior teachers will get a $10,000 pay rise.
"We'll make the classroom teachers the highest paid anywhere in Australia," he said.
The Education Union's Mary Bluett says all teachers will get a pay rise of at least five or six per cent.
"That would do a lot to retain the teachers that we have here in the state," she said.
Under the deal, three of the four pupil-free days will be moved to before the start of the school year and teachers will spend an extra ten minutes in the class room every day.
Next Article: Smith denies Japan visit designed to ease tensions
Previous article: Resources sector pushes up market trade