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The University and CUE exchanged wage proposals in Irvine at their last bargaining session which took place April 22nd through 24th. Each of the proposals is for a multi-year package although the University's program runs for three years through 2010-11 while CUE has included an additional year through 2011-12. Details on each of the proposals are provided below.
UC's Proposal
The University's proposal on wages provides for three years of increases even though the University did not receive any salary allocation in the State Budget for FY 08-09 (and likely no money for salaries for FY 09-10) because it is committed to providing salary increases to its lowest paid employees. UC's proposal focuses on providing the largest increases to the lowest paid CX employees; in particular, those paid less than $40,000 on an annualized basis. For example, in the first year of the Agreement (08-9) the University would provide 3% to employees in classifications where the average salary for the location was less than $30,000; 1.5% to classifications where the average salary was between $30,000 and $40,000; and 1% to classifications where the average salary was more than $40,000.
In the proposed 2010-11 program, which is contingent upon receipt of a salary allocation from the State, the University would provide a merit program in addition to an across the board increase. Due to several factors including the uncertainty regarding UC's budget, the University's proposal is contingent on reaching agreement prior to June 30, 2009. The total value of UC's proposal is approximately 5.7% of CX payroll over three years.
| Fiscal Year | Range Increase | Salary Scale Adjustment to Raise Minimum Salaries | Merit Increase |
| 2008-2009 Effective month after ratification |
3% for classifications w/ average less than $30k; 1.5% for classifications w/ average between $30 and $40k; 1% for classifications w/ average more than $40k |
Eliminate steps below $12 | |
| 2009-2010 (effective 1/1/10) |
3% for classifications w/ average less than $30k; 1% for classifications w/ average at least $30k |
Eliminate steps below $12.50 | |
| 2010-2011 (contingent on State funding) |
Same as previous year (effective 10-1-10) |
Eliminate steps below $13.00 (effective 10-1-10) |
½ step merit increase for eligible employees (effective 4-1-11) |
CUE's Proposal
CUE's wage package provides for four years of increases (2008-9 through 2011-12) and includes range adjustments, equity step increases, seniority increases, and workload equity increases in each year of the contract. The chart below illustrates the specific increases sought by CUE. In the current fiscal year 2008-09 (a year in which UC received no state salary allocation) CUE's proposal would require the University to provide general increases of 7.9% or 8.8% depending upon location retroactive to October 1, 2008. Using an average per location increase of 8.3%, the first year cost to the University would be approximately $37 million. In the second through fourth year of the agreement (assuming all employees are below maximum step), the base general increases would equal 8.4% or 9.3% depending upon location. The cost of these base general increases do not reflect CUE's proposals for annual longevity and workload increases that significantly increase the total cost of CUE's proposal.
Under the longevity proposal, CX employees would transition to a step on the salary scale that corresponded to their years of UC service and then move annually based on service rather than merit. In addition, CUE proposes that employees in those UC departments or areas that have been reorganized receive a workload stipend of 2 steps (approx. 9.6% increase). CUE's rationale is that employees in these reorganized areas have experienced an increase in workload as a result of the reorganization. CUE's proposal does not include a method for determining which departments/areas have been reorganized.
| CUE Demand | ||
| 2008-2009 | Range Adjustment | 3.5% for all PLUS 2% additional for LA, SF, B, M, OP 0.5% additional for SC, D, I, R, SD, SB |
| Location Step Equities | ½ step (approx. 2.4%) equity increase for LA, SF, B, M ,OP 1 step equity increase(approx. 4.8%) for SC, D, I, R, SD, SB |
|
| Longevity Increase | Placement on steps based on UC service | |
| Workload Increase | 2 step increase for those affected by increased workload due to reorganization | |
| 2009-2012 (annually) |
Range Adjustment | 4% PLUS 2% additional for LA, SF, B, M, OP 0.5% additional for SC, D, I, R, SD, SB |
| Location Step Equities | 1⁄2 step (approx. 2.4%) equity increase for LA, SF, B, M ,OP 1 step equity increase(approx. 4.8%) for SC, D, I, R, SD, SB |
|
| Longevity Increase | Automatic movement up steps based on UC service | |
| Workload Increase | 2 step increase for those affected by increased workload due to reorganization | |