6/13/05 Peter Chester's Response to CUE's Counter

(PDF version of this letter)

June 13, 2005

Amatullah Alaji-Sabrie (Via E-mail, Fax and Regular Mail)
CUE Negotiator
2855 Telegraph Avenue, Suite 302
Berkeley, CA 94705

Re: CUE Wage Proposal Received June 10th by Fax (Corrected)

Dear Amatullah:

I am writing in response to your cover letter and the CUE Wage Proposal faxed to my office Friday afternoon June 10th. I am hopeful that the proposal, CUE's first counterproposal on wages since its opening proposal in May 2004, indicates a willingness on CUE's part to undertake a serious effort to resolve the Successor Negotiations as expeditiously as possible.

As you know, until this past Friday, the University had submitted three additional proposals on Wages following our initial wage proposal. The University took this action, despite CUE's unwillingness to provide a single counterproposal, to ensure that the University had done its utmost to reach agreement with CUE in a timely manner. Until Friday, however, CUE failed to make any changes from its original Wage Proposal consistent with its good faith bargaining obligation.

The University's June 3rd proposal was its fourth and best wage proposal. That wage proposal allocates a total of 12% in salary increases for CX unit members through 07-08 (mostly subject to the receipt of state funds). Specifically, the University would provide the following allocations for years 05-06 through 07-08:

05-06: total allocation of 4%
06-07: total allocation of 3.5%
07-08: total allocation of 4.5%

Unfortunately, the latest CUE proposal (that covers wages through 06-07) would require the University to spend an estimated 12-13% through fiscal year 06-07 when the anticipated allocation for such period is 7.5%. In addition, CUE's Wage Proposal does not include the contingencies that are necessary given the University's Compact with Governor Schwarzenegger. As a result, while CUE's latest Wage Proposal represents movement from its original proposal, it is clearly unacceptable to the University.

As you are well aware, the University recently reached a multi-year agreement with AFSCME that provides for the same base-building increases contained in the University's latest Wage Proposal. If the University and CUE are to reach a similar agreement, CUE will have to make significant further changes on the issue of Wages.

Although the University indicated last week that it would withdraw its latest Wage Proposal if not accepted by CUE by 5pm last Friday, the University is willing to extend the current package proposal on the table through the end of the bargaining session in San Francisco scheduled for June 21st-23rd. Please note that the University reserves the right to change the effective dates of any proposed salary increases in the University Wage Proposal for FY 05-06 to the extent that the University incurs any costs related to the CUE job action on June 13th -June 15th.

Please feel free to call me if you wish to discuss any aspect of the University's comprehensive proposal.

Sincerely,

Peter M. Chester
Assistant Director--Labor Relations

Cc: Assoc. Vice President Boyette
Executive Director Pripas
Assistant Director Glasscock
Labor Relations Managers
University Bargaining Team
Assistant Negotiator Donnelly
University Counsel Leone