SUBJECT:  Update on Clerical (CUE) Unit Bargaining

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 issues pertaining to Background Checks. The parties were unable to reach an agreement on these two remaining Articles. The University and CUE have agreed to use the services of a mediator when the parties return to the bargaining table on 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.

The University has offered all clerical employees merit increases and expanded range steps. Under UC's proposal, the average career clerical employee with a satisfactory performance rating could expect an 11 to 13.4% compounded salary increase; while a career clerical employee with an outstanding performance rating could expect up to a 15% compounded salary increase over two years. Casual employees would receive a minimum 8.5% compounded salary increase over two years.

VETERAN'S DAY

Agreement has been reached to provide clerical employees with November 10, 2000 (Veteran's Day) as a new UC holiday.

OTHER FACTS RELATED TO CLERICAL BARGAINING

As a sign of good faith, UC took the unusual step of providing 1998-99 salary increases to clerical employees in the summer of 1999 without the completion of a full contract. With CUE's agreement, UC provided a 2% range adjustment, plus merit increases for eligible career employees, for the 1998-99 year.

UC has offered to work with the union to develop a long-term means of identifying and addressing market-based salary lags.

The University has offered to develop -- as soon as possible following ratification of a contract -- a salary survey methodology that is acceptable to both parties. Following the survey, the University would negotiate with the union over the way in which each campus could address market lags identified by the survey.

UC has made a number of other significant moves toward compromise in these negotiations, including its offer (rejected by the union leadership) to continue the previous contract while a new contract is negotiated, its withdrawal of a proposal to move to a full merit system, and its withdrawal of its initial proposal on work rules.

Achieving a contract is the mutual responsibility of both parties. UC presented its comprehensive contract proposal to CUE at the beginning of bargaining in August 1998. CUE provided its comprehensive contract proposal in June 1999.

UC negotiates with 13 unions over the terms and conditions of employment for more than 60,000 UC employees around the state. During 1999, the University and its unions reached several important labor agreements, including first-time contracts for research support professionals and health care professionals; a successor contract for nurses at UC medical centers and student health facilities; and agreements on wages and other reopened contract articles for technical employees, librarians and lecturers. UC hopes to reach agreement with CUE on a contract for clerical employees soon.

For additional information you may access the UCOP Office of Labor Relations website at:

http://www.ucop.edu/humres/labor/

                                                Rogers Davis
                                                Assistant Vice Chancellor -
                                                Human Resources