August 4, 2000

This is to alert you that on August 7^th, we will be mailing the enclosed copy of a postcard to the PEF membership announcing our intention to propose a modest dues increase to the Delegates at the PEF Convention in September. We will recommend that the dues structure be changed from 0.8% to 0.9%. This would result in an average increase of 93-cent per week for PEF members. PEF currently has the lowest dues structure of all public employee unions in New York State and all similar professional unions in the country. While we have had our share of recent successes, we cannot point to other unions’ accomplishments and compare ourselves to them, until we have the same level of resources.

This increase will allow us to prepare for our next contract negotiations by building a Members’ War Chest, expanding Membership Mobilization recruitment and training, and strengthen our membership political action program. In addition, our International Unions, AFT and SEIU are leading the fight to protect employees from the constant assault of well funded anti-government groups driven to privatize our jobs, and our per capita dues to them have increased and are scheduled to increase again.

During the next month we will provide extensive documentation demonstrating the need and rationale for this proposal. We have enclosed five year income and expense projections, prepared by PEF’s accounting staff and our Budget Advisory Committee that demonstrate just maintaining the status quo dues structure will generate deficits of $875,000 next year, which will grow to $2.6 million by 2005.

By increasing PEF dues by 0.1% to 0.9 %, we will be able to generate a $2.9 million Members’ War Chest by 2003 that will be available for an even stronger response to the State in contract negotiations. Our recently completed contract struggle confirmed that we can progressively improve management offers by using public pressure and what governors fear most is major market advertising campaigns.

The other parts of this plan will also expand our critical Mobilization and Political programs. The funding amounts for the Members’ War Chest, Mobilization/Training and Political Action are identified on the financial projections sheet, which also shows the average PEF dues amounts at our current dues level of 0.8% and the proposed level, 0.9%.

Over the next month we will be distributing more information on this proposal in an additional mailing to Delegates. We will also be traveling to each Regional Delegates’ meeting to answer their specific questions about this plan to expand the strength of our membership. We have enclosed the beginning of what will be a number of FAQ’s about this proposal.

The strength of PEF is derived from the collective resources of our membership and we understand the use of our dues revenues requires our fiscal prudence and your trust. We also understand that without sufficient resources, we cannot successfully lead the future struggles necessary to achieve what our members rightfully expect and deserve. We view this as an investment by members in our ability to secure stronger contracts. With your help, we will raise the bar even further in the 2003 negotiations and this proposal will permit that to happen. Simply stated, strength has its price.

Sincerely yours,