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The University and CUE met for three days of bargaining August 26th through August 28th. The University has asked CUE in bargaining repeatedly to agree to the Furlough/Salary Reduction Program as a means of mitigating the impact of the temporary layoffs that are necessary to address the state funded budgetary shortfall. The University has spent at least 6 full days of bargaining discussing the furlough program and responding to CUE's questions. Discussions regarding the furlough program dominated this latest three day session. Despite these efforts, CUE refuses to either endorse the program or come up with a viable alternative. CUE's Proposed Alternative to the Furlough/Salary Reduction Program are Not Viable.

The University recognizes that it has a bargaining obligation with respect to the Salary Reduction Furlough Plan and, as part of that obligation, must consider alternatives presented by CUE. Unfortunately CUE has not provided any viable alternatives that would actually save the University any money within the CX bargaining unit. At a meeting at the UC Office of the President, Executive Director Lynn Boland explained to CUE's Chief Negotiator any alternative plan submitted by CUE must achieve the same amount of savings (as the Furlough/Salary Reduction Plan) within the CX bargaining unit. Those targeted savings are approximately $13 million. Unfortunately, CUE submitted a proposal that would require UC to provide a 4% deferred salary increase payable in 2011-12. Rather than address the problem of drastically reduced state funding, CUE's proposal saves no money in the CX bargaining unit and would cost the University a minimum of approximately $5 million when the bill for the future wage increases came due. CUE has apparently taken exception to the START program which allows interested employees to reduce the time they work (with a corresponding decrease in pay) but maintains their vacation and retirement accruals at the pre-START percentage. CUE objects to START as unfair insofar as employees on START would be required to use paid time off such as vacation leave or CTO on days that the University has scheduled closure days. On such days, employees participating in the furlough program are expected to use their paid furlough days while employees on START may use paid time off to ensure that they continue to be paid for such days. CUE has referred to this as an unfair double hit for employees on START. The START program was implemented long before the University conceived the Furlough/Salary Reduction Program. Moreover, the START program provides a participating employee with flexibility regarding the hours/days s/he wishes to be off work. Finally, a START employee who is concerned about having to use paid time off on the closure days can always cease participation in START. Such an employee would then be expected to participate in the Furlough/Salary Reduction Program which is currently being negotiated with CUE. CUE and the University will bargain again on September 10th and 11th in Oakland.