After weeks of negotiations, the Government, SINTA and Public Sector Unions have finally signed a Memorandum of agreement (MOA) for a four percent Cost of Living Adjustment Allowance (COLA) increase.

The deal for the four percent COLA increase is two percent above the Government's initial counter offer of 2 percent, and a drop by 7.5 per cent from the initial demand.

SINTA's public relations officer Johnly Hatimoana says apart from the four percent increase, they have also established a mechanism between the parties to continue with negotiations for automatic increment for teachers salaries starting in January next year.

He says the Government has agreed to include it in the budget for 2012 and preparations will begin soon.

Mr Hatimoana says the agreement also briefly addresses a reform of taxation on teachers and public sector workers salaries.

The SINTA public relations officer says Government has withdrawn its referral of the strike action from the Trade Disputes Panel.

He says SINTA will now respond with a formal letter of notification that it has called of the strike action.

Mr Hatimoana says both parties were satisfied with the outcome of negotiations.