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UC DAVIS: VICE CHANCELLOR-ADMINISTRATION

STAFF EMPLOYEE COMMUNICATION
(Please Post/Circulate)

October 5, 2000

DEANS, DIRECTORS, DEPARTMENT CHAIRS AND 
CAMPUS/UCDMC ADMINISTRATIVE OFFICERS

RE:  Incentive Award (Performance Bonus) Program Elimination

In addition to UC's regular annual salary increase plan and the special
state augmentation for additional salary increases previously announced,
this year UC is taking a further step to improve the basic staff salary
program by eliminating the Incentive Award (Performance Bonus) Program.
Performance Bonus Awards for this past year's (99-00) program will be
distributed in the near future.

The Incentive Award Program has provided annual funding for departments to
pay non-base building cash awards to deserving staff employees.  UC
believes that, given current market conditions and ongoing compensation
concerns, these funds will have more value to employees if they are used to
increase base salaries.

Therefore, beginning this year (00-01) all non-represented, non-senior
management staff employees will receive a 0.8% increase in addition to
their regular annual salary increases.  The staff salary program for
employees represented by unions, including distribution of Incentive Award
Program funds, is subject to the collective bargaining process.
This additional 0.8% increase will be effective October 1, 2000.  The
timing of the actual receipt of the increase is dependent on the need to
modify payroll and personnel systems to accommodate the change.  

Dennis Shimek
Associate Vice Chancellor -
Human Resources

00-118



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