PLEASE POST                                                                                             May 1, 2003

CLERICAL BARGAINING UPDATE

 PARTIES REACH TENTATIVE CONTRACT AGREEMENT

The University of California announced today, May 1, that it has reached a tentative agreement with the Coalition of University Employees on a new labor contract for clerical employees.

The Coalition of University Employees (CUE) notified University officials late last night that its members voted to accept a settlement agreement proposed by State mediator Micki Callahan.

"Our clerical employees work very hard to help UC remain the premier public research university in the world, and we believe this agreement is a fair and balanced compromise considering the significant state funding constraints we're experiencing," said Judith Boyette, Associate Vice President for Human Resources and Benefits. "We're very pleased that the union and its members have chosen to accept this agreement."

Both UC and CUE are expected to formally approve the agreement with their respective executive bodies within the week. As soon as the agreement is finalized, the University  will be able to implement past raises for clerical employees.

By accepting the mediator's proposal, clerical workers will receive a total overall      wage increase of 2% for 2001-02 (1% of which was implemented September 1, 2001), and 1.5% for 2002-03, for a two-year total of 3.5%.

UC is very grateful to state mediator Callahan for her services in connection with these discussions.

Only dues-paying union members are allowed to vote on contract proposals. Of UC's 18,000 clerical workers represented by CUE, approximately one-third are dues-paying members.

UC had been negotiating with the Coalition of University Employees for a new contract since May 2001.  UC employs clerical workers throughout its 10 campuses and five medical centers and the three national laboratories it manages for the federal government and continues to offer its 150,000 employees systemwide compensation and benefits virtually unmatched by any of its competitors.

 Additional information about these negotiations is available at:

 http://hr.healthcare.edu

If you have any questions, please contact Healthcare Labor Relations at 40500.