Tudela’s employees face wage cuts

Saipan Mayor Juan B. Tudela warned Friday that the severe drop in government revenue this fiscal year will leave him choice but to implement a wage cut on all personnel until the CNMI revenue status recovers.

Tudela’s office has a total of 64 full-time employees, most of whom he wants to keep, at least until Sept. 30, 2009, the end of the fiscal year.

“For me, it’s better to cut their salaries and reduce their working hours…than to see them unemployed because I laid them off,” he told Saipan Tribune.

From a previous annual appropriation of $2.5 million for the Saipan municipality, the amount plummeted this year, resulting in only $1.2 million for personnel costs. The amount reflects the across-the-board 5 percent cut in the allotments of all government instrumentalities.

“In a limited budget for personnel and operation, there’s always the chance for a shortfall. I don’t want to stop the delivery of services to our community…and this means that I need to look at the other areas where we can lower our expenses. One of them is personnel cost,” he said.

Tudela, who just arrived from a conference of mayors abroad, said that Saipan is not alone in the budget crisis, with other regions and states facing the same dire situation.

However, he said, “priority” sets the difference.

Under the approved budget of the Legislature, the austerity and non-paid holiday proposals of the Fitial administration were excluded.

In conceding that these measures will be introduced as a stand-alone legislation, Tudela said he might not wait for the Legislature’s formal action if the need arises for its implementation.

The budget legislation, which the Legislature is thinking of overriding after being twice vetoed by Gov. Benigno Fitial, contains a provision giving expenditure authorities and business units the authority to enforce internal austerity measures either in supplies, operation, or personnel.

“I have 64 employees…and only one of them is receiving $45,000 annually. The rest are receiving wages ranging from $12,000 to $18,000. I think it would be fair enough if adjustment will be implemented on all of them,” he said.

Tudela is mulling a 72-hour biweekly schedule or up to 64-hour service, if needed, just to keep everybody’s job.

Last fiscal year, a number of the municipality’s employees were issued termination notices and non-renewal of contracts but were later reconsidered until the end of the fiscal year.

“All personnel are vital in our operation. Their services are critical in the timely delivery of services to the people,” he said.

Tudela is serving his last term in office as Saipan mayor.

“In the remaining 10 months of my administration, I want to continue my mission for ‘the people,’” the mayor said.