SUBJECT:

New Minimum Wage Proposal

As a result of the passage of Proposition 210, the Living Wage Act, the
minimum wage in the State of California will be increased to $5.75/hour
effective March 1, 1998. Although the University of California is not
required to comply with this new wage order, in the interest of keeping
University wages competitive with the market, it is proposed that the
minimum wage at UCSD also be increased to $5.75/hour on March 1, 1998.

The only payroll title in use which is affected by this increase is the
Assistant II (TC 4921) which has an existing salary range minimum of
$5.15/hour. Therefore, under this proposal, the minimum of the Assistant II
salary range would increase to $5.75/hour effective March 1, 1998 for
employees paid monthly and February 22, 1998 for employees paid biweekly.
Any students who are currently employed at a rate lower than $5.75/hour
would be centrally adjusted to the new minimum.

Additionally, there may be by-agreement rates which have been negotiated
reflecting an equivalent hourly rate that is less than the new minimum. Key
Administrators are advised to review any by-agreement rates which have been
negotiated and consider the effect of adjusting the by-agreement rate to
reflect a minimum compensation level of $5.75/hour.

Please share this information with supervisors and affected employees in
your area. Those wishing to comment on this proposal are advised to do so
by Monday, February 16, 1998. Written comments regarding this proposal
should be addressed to Judy Johnson, Compensation Manager at mail code 0922
or via electronic mail at jjohnson@ucsd.edu. All comments will be carefully
considered before a decision on this matter is reached.

Rogers Davis Assistant Vice Chancellor - Human Resources