From the Desk of Roger E. Benson, President

TO: Members and Staff

DATE: October 29, 2003

Since we announced our “Cut State Waste” Rally on November 19, contract negotiations have moved to a significant new level that could result in a tentative agreement that will meet our core needs. As a demonstration of our good faith in the negotiations process, we are postponing the November 19 rally.

We apologize for any inconvenience this may cause. If these negotiation efforts are unsuccessful, please be prepared to support our Contract Team by whatever means they ask.

Thank you for your patience and support. We will keep you posted.

Negotiators met this week to continue their discussion of health benefits proposals. Both PEF and the State are advancing very serious proposals in this area, and it is clear that finding a mutually acceptable resolution will be one of the more difficult challenges in this round of bargaining.

The PEF Team is scheduled to meet internally next week. We will resume full table negotiations the week of November 10^th.