Vanuatu: Teacher payment highly likely to avert renewed industrial action

Around 29 July, the Vanuatu Government paid AUD$6 million to settle outstanding teacher entitlements under the Collective Bargaining Agreement (CBA), including back-pay, allowances, arrears, claims, and severance payments. The payments follow a 30-day strike notice issued by the Vanuatu Teachers Union (VTU) around 20 June over unpaid entitlements and the failure to establish the CBA Joint Monitoring Committee. Under a subsequent Memorandum of Conciliation, the Teaching Service Commission (TSC) and VTU committed to resolve outstanding allowance issues by 11 September 2026, while continuing to review payment discrepancies and provide teachers and the VTU with payment information.

Assessment: The payment indicates an effort to prevent further teacher strikes despite fiscal constraints, resulting primarily from the global fuel disruption. The CBA was signed in 2025 to end and resolve an 18-month strike. Teacher strikes in Vanuatu are generally peaceful and contained, but prolonged disputes have previously increased youth crime risks. Resolving outstanding claims by 11 September is likely to reduce the immediate risk of renewed industrial action.

Sources: “VT502M paid for teachers' outstanding entitlements,” Daily Post, 29 July 2026.