PEF and the State met yesterday, June 25, and opened negotiations for employees at the Roswell Park Cancer Institute (RPCI). A special contract addendum is required for PEF members who work for Institute because they do not have coverage of either the NYS Attendance Rules or Civil Service Law. The State and the Union had previously agreed that negotiations for RPCI must be complete prior to completion of the main contract.

The Lead Union Negotiator for the PEF RPCI effort is Elizabeth Hough. On her bargaining team are Roswell employees and PEF elected leaders Joyce Degenhardt, Jim Pazik and Adam Sumlin. The PEF RPCI Team will be meeting with Local Leaders and Members later this week to advise them of the status of negotiations.

Negotiators reconvene on Wednesday, July 2 and Thursday, July 3. On tap is a more in-depth discussion of Article 9 - Health Insurance, Dental and Prescription benefits. In addition, the Union will respond to the State's first 3 written proposals, received last week, in Articles 30, 32 and 41. Other topics that may be discussed include State and Union demands in Articles 20 and 36, a Union proposed new article entitled "Employee Privacy" and the Union's demand in Article 34.

UUP negotiators have decided to join CSEA in taking a hiatus from bargaining. As you may recall from an earlier update, CSEA's position on the negotiations was summed up in their quote " State Negotiators are about as talkative as Harpo Marx".

The following was sent to the State's Chief Negotiator, Rebecca Caudle, on June 24, 2003

Becky

The Conference Board is projecting a little more than a 2.5% inflation rate as well as 3.5% raises for both 2003 and 2004. The salary data we have been collecting and reporting on is consistent with these projections. Perhaps more importantly for our purposes the Conference Board information on wages is not inconsistent with DOB's own projections for 2003 and 2004. FYI, the most recent wage report follows the BLOOMBERG News article.

See you Wednesday at 1:00 P.M.

Roger (Scales)

By JOE RICHTER, Bloomberg News

First published: Tuesday, June 24, 2003

NEW YORK -- Salaries of U.S. workers will probably rise this year at the slowest pace in at least 10 years as companies try to control costs amid weak economic growth, a private survey showed.

Companies surveyed by the Conference Board, a New York-based research group, said they expect to boost salaries by 3.5 percent this year, down from a previously projected 4 percent. That would be first time in a decade for median increases to move "significantly" below 4 percent, the group said. Companies also projected a 3.5 percent increase for 2004.

"U.S. business continues to struggle back from the recent economic downturn," said Charles Peck, the Conference Board's compensation specialist. "Caution is the prevailing mood, with companies paying careful attention to controlling costs."

The forecast average pay raise would be about a percentage point higher than inflation. The research group projected a 2.6 percent increase in the consumer price index for this year and 2.7 percent for 2004.

Salary budgets may be even lower than projected because companies are taking other measures to cut wage and salary costs. Those include layoffs, hiring freezes, furloughs and delayed merit increases, the Conference Board said.

Recent reports suggest that joblessness is dragging down consumer confidence and spending, which economists said could weigh on growth in the second half of the year. Consumer spending accounts for at least two-thirds of the economy.

The University of Michigan's preliminary consumer confidence index fell this month as rising unemployment undermined optimism. Personal spending fell in April for the second time in four months as higher unemployment limited purchases and fewer hours worked restrained incomes.

The Conference Board may say this week that its consumer confidence index retreated to 82 this month from 83.8 in May, based on the median of 62 estimates in a Bloomberg News survey of economists. After plummeting to an almost nine-year low of 61.4 in March, the index rose for two straight months.

The Conference Board's salary forecast was similar across industries and among employee groups, which include hourly and salaried workers, the group said. The one industry exception was insurance, where salary increases are expected to be about 4 percent this year and next.

ALBANY TIMES UNION, June 14, 2003- Julie Blair Nursing Home and SEIU 1199 agreed to a contract which provides nursing assistants, food workers and housekeepers 4% raises in both 2003 and 2004, reductions in employee out of pocket health insurance expenses and bonus payments.

ALBANY TIMES UNION, June 6, 2003- The City of Albany and its teachers union, APSTA (AFT) reached a new 3 year contract. Under the agreement teachers will get pay increases of 2.5 percent in each of the first two years and 3 percent in the third year. In the second year teachers will begin paying 3 percent of their health insurance premiums. “In future years” Elementary school teacher will be adding 30 minutes a week to allow for team and individual planning periods while “some high school and middle school teachers will teach an extra period.”

Associated Press, June 3, 2003 – The contract covers 34,000 New Jersey employees represented by CWA. It includes a pay freeze for 2003, 2.9 percent pay raise on July 1, 2004, and a 2 percent increase on July 1, 2005. There would be two pay hikes in 2006 — a 2 percent raise on Jan. 1 and another of 2.25 percent on July 1. The final pay raise of 2.35 percent would be given on July 1, 2007.

The Union and the State agreed to increase the amount workers contribute to the state pension system from 3 percent to 5 percent.

In the health insurance area, the contract calls for increases in the amounts of medical co-pays for state workers. The yearly deductible would rise from $100 to $250; office visits would go from $5 to $10; generic drug prescriptions would increase from $1 to $3; and brand name drugs would cost $10, up from $5. The agreement increases the number of workers who receive health benefits by newly covering intermittent employees who accumulate more than 750 hours of work.

- DAILY GAZETTE: CSEA MEMBERS OK 1 YEAR CONTRACT – 5.23.03 – Montgomery County union members represented by CSEA Local 829 will receive a 2.5 percent salary increase for 2003

- NY TIMES, Michael Cooper reports: MANHATTAN CITY AND DETECTIVES REACH AGREEMENT – 5.23.03 - The city reached a tentative contract agreement yesterday with the union representing New York City's detectives that raises their pay and benefits by 11.5 percent over two and a half years. The deal, which is retroactive to 2001 and expires next February, would raise the salaries of third-grade detectives to $61,670 from $55,936 and first-grade detectives to $79,547 from $72,151, officials said. Thomas J. Scotto, the president of the union, the Detectives' Endowment Association, said he expected the union's membership to ratify the contract. Michael Cooper (NYT) 5/23/03

- THE JOURNAL NEWS reports “Mayor Joseph Delfino and the White Plains Common Council plan to give themselves a 3.75 percent raise in fiscal 2003-04.” May 16, 2003

- SEIU NEWS, April 30, 2003, reports that 28,000 NYC apartment workers settle their contact with wage gains in each year of the multi year agreement. The contract was reached 70 minutes after the strike deadline following a marathon bargaining session. Under terms of the new three-year pact, union members will receive salary increases of about 2.8 percent per year above the cost of living as well as increased employer contributions to their health and pension funds. In the first year, residential building workers will see wage increases of $18 to $21 per week, depending on job classification.

- The U.S. Labor Department reported Tuesday, April 29, that U.S. workers' wages and benefits rose by a surprising 1.3 percent in the first three months of 2003, the biggest increase in nearly 13 years. The increase in the employment cost index for the January to March quarter was nearly twice as big as the 0.7 rise posted in the fourth quarter of 2002. USDOL reported that wages and benefits in the first quarter were growing more quickly than the 0.8 percent advance that economists expected.

The 1.3 percent rise registered in the first quarter was the largest increase since the second quarter of 1990, when compensation went up by the same amount. The costs of benefits, such as health insurance and vacations, continued to outpace wage gains. Benefit costs rose by 2.2 percent in the first quarter of 2003, following a 1.3 percent advance in the prior quarter. The increase in benefit costs in the first quarter was the largest in 15 years.

- Firefighters Reach Agreement: The Albany TIMES UNION reports that City officials and Firefighters Association Leaders in the city of Cohoes reached a new contract which includes across the board raises as follows

- 3%, 2001

- 3%, 2002

- 4%, 2003

- 3 1/2%, 2004

- CONNECTICUT STATE EMPLOYEES - NEWSDAY, April 22, 2003, reports that the 6,000-member clerical union reached a labor deal with the State of Connecticut. The agreement includes a 3-percent pay raise in the first year, effective June 23; a wage freeze in the second year; a 2.75-percent increase in the third year that would be delayed three months; a 2.5-percent increase in the fourth year; and an agreement to re-negotiate wages in the fifth year.

- "Principals Get 8% Hike, No Givebacks", CHIEF LEADER April 11, 2003

The NYC Council of School Supervisors and Administrators reached a contract with the Bloomberg administration that hews to the city wage pattern. The contract runs from April 1, 2001 to June 30, 2003 and contains raises starting at 8%. For some the ATB’s will reach 11%.

- Source: TIMES UNION, March 25, 2003 “Schenectady, police union approve new contract

Schenectady-- Deal provides 12.5% pay raise over 4 years, drug tests, other management gains.” “The Police Benevolent Association made the concessions in return for a 12.5 percent pay increase over the course of the four-year pact, which will expire on Dec. 31, 2005. The pay increase includes approximately $200,000 in retroactive pay for last year, the first year of the contract.”

- Source: NEWSDAY, March 19, 2003, BUFFALO, N.Y. -- The police union and Buffalo officials signed a five-year contract Wednesday that implements one-officer patrol cars and raises officers' top base salary to $64,095 within four years. The contract also gives officers an across-the-board increase of $5,000, a 3.4 percent annual increase, guarantees no one will be laid off or reduced in rank through 2007, revamps schedules and creates nonunion "commanders" who would manage each of the city's five police districts.

- From the February, 2003 NYS- NEA “ADVOCATE”

A) - Adirondack Community College ESP Association’s 3-year contract includes salary increases of 3% + $260 for 2002-2003 and 3% + $205 for each of the remaining years. Other gains: life insurance at twice the employees’ salary, and a 1-year freeze on health insurance premium increases.

B) - Gloversville Office Personnel Association’s 3-year contract includes salary increases of 4.5% + $400 for typists for the year 2001-2002. Second and 3rd year increases: 3.25% + $200 and 3.25%, respectively. Other gains: New longevity step at 10 years plus increases to all longevity steps.

C) - Peru Association of Teachers’ 3-year contract includes salary increases of 4% for 2001-2002, and 4.5% and 4.25% for the remaining years,. Other gains: Teaching Assistants add new step in years 2 and 3; payment of unused sick leave at retirement increases; retirement benefit increases.

D) - Bethlehem Central Teachers 3 year contract providing salary increases of 5.6 percent, 5.2 percent and 5 percent, respectively.

- Source: BNA's "Government Employee Relations" Report dated February 25, 2003. Federal employees will receive a 4.1 percent average pay increase in 2003 retroactive to the beginning of January under a bill signed by President Bush on February 20. The bill was overwhelmingly approved by both houses of Congress on February 13.

In December, 2002 Bush signed an executive order granting 3.1 percent raises to federal civilian employees and 4.1 percent raises for military personnel. This recently signed bill corrects the disparity.

The Bush administration's recent 2004 budget proposal calls for a 2% across the board pay raise for federal employees plus $500 million for performance bonuses.

-January 9, 2002 State workers in Nebraska reach a tentative agreement. 1.5% 2003, 2% 2004, and freeze contractual step pay plan that would have provided 2.5% in each year. Reduce cost to employees of prescription drug co-payments.

-Source: NY TIMES January 5, 2002 – Metropolitan Transportation Authority (NYS Governor appointees) and the Transport Workers Union Local 100 (representing 34,000 subway and bus workers in NYC) - $1000 one time payment 2003, 3% 2004, 3% 2005; plus “nearly $400 million more over three years to safeguard health coverage”.

-TIMES UNION December 6, 2002 – “All Albany County employees should see raises next year, after all – unless they were elected to their jobs”…. “4% cost of living raises for workers whose jobs are not covered by union contract and who make $50,000 or more a year”

-The BUFFALO NEWS 12.3.02- Niagara County Community College faculty pay “will rise 2 percent in the current academic year, 3 percent in the 2003-04 and 2004-05 and 4 percent in 2005-06”

-NY TIMES 6.11.02 - “District Council 37 and most other city unions received raises of 9% over 27 months in contracts that averaged a 4% raise each year”.

-NY TIMES August 7, 2002 - “The union, the bus companies and the city (NY) reached a tentative deal on Saturday” 27 month agreement is retro to 1/1/01 and provides for 4% in 2001, 4% in 2002 and another 1% on March 31, 2003.

-THE CHIEF LEADER - UFT and NYC reach settlement for 80,000 Teachers

ATB 16% (compounded) 4% 11/16/00, 5% 11/16/01, 6% 9/1/02

Raise starting salaries by 22.3% “State lawmakers have included $400 million in the new state budget to pay for and sustain the 6% pay hike”

-NY TIMES September 19, 2002 – 3000 health care employees in NY area receive a 20% increase over 15 month agreement.

-WALL STREET JOURNAL September 15, 2002 - “Salary freezes will be rare next year, and raises are likely to be slightly higher overall.” “On average, salary increases are expected to be 3.9% for salaried overtime-exempt employees, 3.8% for salaried union workers and non-union hourly workers, and 4.1% for executives, according to a survey of 1,045 companies by consultant Hewitt Associates.”

-TIMES UNION – City of Albany and Albany Blue Collar Workers Local 1961 receive back to back 3% raises on December 31, 2002 and January 1, 2003, 4% in 2004 and 5% in 2005

-TIMES UNION – City of Albany and Albany Permanent Professional Firefighters Association receives 0% for 2002, 1% January 2003, 1% July 2003, 2% for 2004 and 3% 2005 and “heftier retirement and insurance benefits”.

-NYS DOL Collective Bargaining Settlement Report, August 2002 – City of Troy and CSEA 3% 1/1/02, 3% 1/1/03, 3% 1/1/04, 3% 1/1/05, 3% 1/1/06, 3% 1/1/07

-NYS DOL Collective Bargaining Settlement Report, August 2002 –Columbia County and UPSEU 3% 1/1/01, 3.25% 1/1/02 and 3.5% 1/1/03

-NYS DOL Collective Bargaining Settlement Report, August 2002 – Rockland County and CSEA 4% 1/1/02, 3.75% 1/1/03

-NYS DOL Collective Bargaining Settlement Report, August 2002 – Ulster County and CSEA 3% 1/1/03, 3% 1/1/04 and 3% 1/1/05

-NYS DOL Collective Bargaining Settlement Report, August 2002 – Sulfolk County Community College and AFT Local 3038 2% 9/1/02, 3% 9/1/02, 3% 9/1/03 and 3% 9/1/04