Previous Story
‘Wage cut should have been done 3 yrs ago’
|
Posted on Apr 12 2006
The Fitial administration remains determined about its wage reduction plan despite wide opposition and concerns over the proposal’s potential multiplier effect.
Press secretary Charles P. Reyes Jr. said yesterday that the wage cut should have been done three years ago, but the previous administration did not have the political will to do it.
In January 2003, then Gov. Juan N. Babauta had proposed a voluntary 30-minute reduction in government work hours to cut government spending. Then House Speaker Heinz Hofschneider had also proposed a mandatory one-hour reduction. Neither of the proposals was implemented.
Reyes maintained that 2003 would have been a more opportune time to do the wage cuts, as the economy was in a better shape that it is now. He added that there were more airlines flying to Saipan and more garment factories operating.
“We believe that pay cuts should have been done then. Because of lack of political will, those pay cuts were never implemented. That made matters worse,” he said.
The new administration, he said, had the political will to reduce government wages. He also said that the leadership was prepared to face the adverse effects of its proposal.
“There are going to be adverse short-term effects. The wage reduction may cause some businesses to lose money, but it’s also going to save the government a lot of money and keep it running. We’re ready to weather the storm to get this done. We’re prepared to accept short-term loss for long-term gains,” Reyes said.
Public hearings on the wage reduction bills pending in the Legislature were held on Rota, Tinian, and Saipan beginning Monday evening.
