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2000-2003 Second Contract Negotiations

Bargaining Report No. 19

April 25-26, 2002

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Bargaining Update #19: April 25-26, 2002

  1. New wage offer from UC
  2. "CAP" retirement contributions -- is it wages?
  3. Temporary employees being released
  4. Other issues on the bargaining table

NEW WAGE OFFER FROM UC

CUE and UC bargained on April 25 & 26 at the Riverside campus. On the second day of bargaining UC made the following wage "offer":

For 2001-2002 UC's offer remains the same: 1% cost of living increase effective 10/1/01 and NO merits.

For 2002-2003 UC offered the following: NO cost of living increase, but merits for all those who are eligible (career employees) would be distributed only on the condition CUE would agree that a satisfactory evaluation would only earn a half step merit and that UC could delay the implementation of the merits in order to meet their "budgetary goals."

This offer is based on UC's assumption that it will receive 1.5% for staff increases from the state of California. CUE reminded UC bargainers that only 36% of clerical salaries are paid from state funds. CUE estimates that of 18,000 UC clericals perhaps 7,500 would actually receive an increase under this proposal.

(NOTE: 17% of the unit is limited appointments or temps: 18,000 minus 3,100 = 14,900. 20% of those who are merit eligible are topped out: 14,900 minus 3,000 = 11,900. We estimate that at least 1,500 clericals will not be recommended for merits by their supervisors and that at least 2,000 clericals will be on probation on 10/1/02, leaving approximately 8,400 clericals -- less than half the bargaining unit -- in place to receive merits under UC's proposal.)

CUE has not made a formal response to the offer, but the CUE bargaining team feels that it is unacceptable, an insult to 18,000 hardworking employees, and in NO way reflects what UC is capable of spending on clerical salary increases.

"CAP" RETIREMENT FUND

The CUE team raised with UC our concern about the content of their latest report on bargaining, called UC-CUE Bargaining Update #16. In it, UC refers to the special retirement account (Capital Accumulation Provision, or CAP) that they are setting up for all employees, separate from the regular pension fund.

WHAT IS A "CAP" FUND?

UC states that "Both the University and CUE acknowledge that the special CAP account equal to 3% of 2001-2002 wages adds to the clerical employees' total compensation." This is simply not the case. CUE's chief negotiator restated for the record that the 3% CAP was never 'offered' to CUE, we were simply informed that UC was going to set aside the money for all employees and that clericals were included. We did not object to the CAP, but we never agreed that it added to overall compensation. CUE asked to see UC's bargaining notes, which would confirm that CUE had in fact made any such acknowledgment. UC's chief negotiator claimed that she relied on her memory, not her bargaining notes.

WHY IS THE "CAP" NOT PART OF A WAGE OFFER -- AND WHO IS ELIGIBLE TO RECEIVE IT?

The 3% of one year's salary that UC is putting into this fund is money that career clericals will get only when they retire or leave UC. The approximately 20% of our bargaining unit who are limited appointment or temporary employees are not eligible for the CAP because they do not contribute to the retirement system.

For the record, CUE disagrees strongly that the CAP should be considered part of clericals' overall compensation. The CAP is like a bonus -- it's a one-time payment that is not base-building (that is, it does not increase our base salaries).

TEMPORARY EMPLOYEES BEING LET GO IN VIOLATION OF THE CONTRACT

CUE also raised strong objections to the fact that some UC temporary pool employees who have worked in temporary positions for 18 months are now receiving letters that tell them they are being released because they are about to convert to career status. The contract language says:

Individuals in floater (temporary) appointments for a period of more than eighteen (18) months without a break in service of one hundred twenty (120) consecutive calendar days, shall be converted to a career appointment on the first day of the month following completion of the 18-month floater appointment.

CUE is considering how to respond to UC's contract violation in this matter.

OTHER ISSUES ON THE TABLE

Contract articles discussed at this session included Layoff, Subcontracting, Grievance and Arbitration, No Strikes, Positions and Personnel Files.

CUE and UC will meet in Oakland May 2 and 3 to continue discussions.

CUE's Bargaining Team:

Margy Wilkinson, Chief Negotiator
Chris Benoit, Lead Negotiator
Mark Covington, Lawrence Berkeley National Laboratory
Becky Croll, Davis
Hilary FitzGerald-Nicholson, Berkeley / UCOP
Deborah Freeman, San Francisco
Jody Galluzzi, San Diego
Elaine Hernandez, Irvine
Connie McGrath, Riverside
Joanne Murray, Santa Barbara
Zoe Sodja, Santa Cruz
Anita Windom-Jones, Los Angeles

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