4.75 percent pay increase this year and a 4.77 percent increase next year.

"That's the best we could do, considering the downturn in the economy,'' Amalgamated Bermuda Union of Teachers organiser Mr. Milton Scott said yesterday.

"During these times, you are really looking to maintain the collective agreement and make sure you don't get behind.'' The ABUT represents about 700 teachers at Government schools, who have been working without a contract for the last 10 months. The contract problem was referred to Government's Labour Relations Officer after talks broke down last month.

Negotiators reached a settlement last Tuesday, and it was ratified at the end of the week.