Previous Story
Layoffs possible by July 1
|
Posted on Jun 05 2006
The CNMI government is now looking at a closer deadline for the possible furlough of certain employees within the Executive Branch.
Press secretary Charles P. Reyes Jr. said yesterday that layoffs may take place by July 1, a month earlier than the target date initially announced by the administration.
“Because of the severity of our financial situation, drastic actions are imminent. Such actions will be taken by July 1, 2006. The fourth quarter allotment will be drastically curtailed and furloughs are in order,” Reyes said.
“We don’t have the specific number [of personnel to be terminated or furloughed] yet, but each department in the red will be given direction soon. By July 1, layoffs may take place,” he added.
The workforce reduction plan is intended to prevent the government from suffering a $32-million deficit when the fiscal year ends on Sept. 30, 2006.
According to Reyes, the layoffs are necessary because the government failed to realize the anticipated cost reductions because of delays in wage cuts and Retirement Fund reforms.
The government continues to spend $16 million per month when it should be spending $14 million or less, he said.
“We cannot continue to operate in a state of denial,” Reyes quoted the governor as saying.
The issue was discussed during yesterday’s Cabinet meeting.
The press secretary said that Gov. Benigno R. Fitial, in the Cabinet meeting, strongly emphasized the critical need to implement the administration’s Retirement Fund bills, which he said are a crucial part of the overall plan to save the government from financial collapse.
Antonio Muña, the governor’s special assistant for management and budget, said earlier that drastic power rate increases and layoff of government workers would happen no later than Aug. 1, if the bailout bills pending in the Legislature were not passed.
Muna was referring to bills that would cut government wages, force the NMI Retirement Fund to forgive the government’s $123 million debt and issue a new $40 million loan to the Commonwealth Utilities Corp., and allow government personnel to convert from the current Defined Benefit Plan to the Defined Contribution Plan.
