A strike was averted at the California Youth Authority institution in Whittier when teachers agreed to a tentative two-year contract. Teachers at Fred C. Nelles School will receive a 6.5% salary increase for fiscal 1985-86 and a 5% increase July 1, 1986, said Wayne Shada, vice chairman of the bargaining unit that represents the institution's 35 teachers.

Teachers at the youth authority's 19 state facilities had wanted a one-year contract with a 15% pay raise. The Sacramento-based California State Employees Assn. represents about 240 youth authority teachers statewide.

Under the agreement, the teachers will make $28,000 to $37,000 a year.

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