SUBJECT:  Status of UC-CUE Bargaining as of October 10, 2000

In the most recent negotiations between the University of California and the Coalition of University Employees (CUE), the differences between the parties were narrowed to Wages and some issues pertaining to Background Checks. The parties were unable to reach agreement on these two remaining issues. The University and CUE have agreed to enlist the services of a mediator and return to the bargaining table tentatively set for October 24 and 25.

The following is a summary of the University's most recent wage offer:

--3.5% across the board range adjustment, retroactive to 10/1/99.

--.8% across the board range adjustment (formerly the Incentive Award Program funding), retroactive to 6/1/00.

--1% across the board range adjustment, retroactive to 7/1/00.

--3% across the board range adjustment, effective 10/1/00.

--One step added to the top of the range (approximately 4.5%) affecting those employees who have reached the maximum of the range, effective 10/1/2000.

Pursuant to this proposal, career employees with a satisfactory performance rating or better could expect to receive an 8.5% to 13.4% compounded wage increase. The full step added to the top of the range would make all career employees eligible for a merit increase, effective 10/1/00. As such, all clerical employees including casual employees, would receive a minimum 8.5% compounded wage increase.

VETERAN'S DAY

CUE has agreed to the University's proposal that all campus locations provide November 10, 2000 (Veteran's Day) as a new UC holiday.

Should you have any questions regarding the above, please contact Belinda M. Hein at 858-534-2953, or at bhein@ucsd.edu.

                                                Rogers Davis
                                                Assistant Vice Chancellor -
                                                Human Resources