‘Stop the bleeding, stop hiring’

House minority leader Arnold I. Palacios believes that the government could survive the current fiscal crisis without passing wage reduction bills.

To begin with, Palacios said it is unfair to pass the burden of bailing out the financially bankrupt Commonwealth Utilities Corp. only to the government employees.

Palacios said that the CUC crisis was the original reason cited by the Fitial administration on the need to reduce wages.

“I’m reviewing the governor’s communications to us. The original reason that the administration was citing for cost-cutting is to save money to subsidize CUC at the tune of $24.4 million. Now my question is why the cost of CUC be borne by the government personnel only? This is the cost that should be borne by the whole Commonwealth,” said Palacios.

Palacios said that the government better face the problem head on, that is, to adjust CUC prices based on actual costs.

Adjustment of prices would mean that people have to pay a higher rate for electricity.

“If it’s fuel cost that’s the culprit, we can’t sweep it under the rag. Everybody has to pay the price. Basically, you pay what you consume,” said the lawmaker.

Bills have created panic

Palacios said the administration-supported wage reduction bills—Senate Bill 15-40 and House Bill 15-115—have created “a panic in the community.”

“It’s going to impact the economy. These two bills are doing more harm than good,” said Palacios, citing that less money for the people would also mean less economic activity and less revenues for the government.

Palacios said that the governor should have long exercised his authority to cut wages of “ungraded wages and salaries” to save funds.

“The governor can cut wages and salaries of employees without the need to pass wage reduction bills. He has that authority under the law,” said Palacios.

He said that Title 1 subsection 8101 and subsection 8241 and 8252 part 2 of the Compensation Adjustment Act give the governor discretion in making reduction in wages and salaries.

It covers government appointees, special assistants, consultants, and other employees with ungraded positions.

Gov. Benigno R. Fitial, in a news briefing in late April, said that he has ordered the Office of Personnel Management to begin implementing a 10-percent wage reduction for exempted employees or non-civil service government workers.

The wage reduction is done upon renewal or contract negotiation and following a required 30-day or 60-day notice.

“It should have been done earlier,” said Palacios.

Meantime, Rep. Stanley Torres, in a separate statement, called on Rep. Crispin Ogo, chairman of the House Ways and Means Committee, to bring H.B. 15-115 to the floor “for final discussion and a formal disapproval.

“This action will answer the calls of our many constituents who have overwhelmingly voiced their displeasure to this Executive Branch’s piece of legislation,” said Torres.

Ogo earlier said that he favors shelving the bill citing opposition from the public.

House Speaker Oscar M. Babauta, however, instructed the committee chair to tackle the measure within the committee and report it to the entire body.

Babauta said that he is aware that some members are opposed to the measure, but it has “to be vigorously debated within the committee and be reported to the whole House for floor deliberation.”

“That’s the process that should be taken,” Babauta said.

Senate president Joseph Mendiola has likewise called on the Senate Fiscal Affairs Committee to do the same.

Mendiola said that the Senate bill is not shelved at all.

Both bills propose a 10-percent salary cut among civil service personnel.

The proposals said such an approach is necessary “to prevent further deterioration in the Commonwealth’s financial situation, and hopefully prevent a reduction in the government workforce.”

Meantime, Palacios said other than CUC rate adjustments, the administration can cut expenses by “stopping its hiring.”

Palacios said that in about three months, the administration has certified some 300 positions.

“It means that the administration is certifying that there’s money to pay them. Stop the bleeding. Stop hiring,” said Palacios.