Bill 180 - Pay Adjustment for Guam's Public Servants
AN ACT TO REPEAL AND REENACT § 6201 OF 4 GCA CHAPTER 6 TO GRANT A UNIFORM PAY INCREASE OF TEN THOUSAND EIGHT HUNDRED EIGHTY DOLLARS ($10,880) TO ALL CLASSIFIED PUBLIC SERVANTS OF THE GOVERNMENT OF GUAM.
Bill 180 FAQ
Q: Who would get the $10,880
pay increase?
A: Every classified employee
of the Government of Guam that doesn’t work for an autonomous agency.
Q: Why $10,880?
A: The last pay scale
adjustment was in 1989, $10,880 reflects the amount that the lowest paid Public
Servant (Pay Grade A, Step 1) has lost to inflation. People in higher pay
grades like teachers, Accountants, Nurses, engineers etc have lost more.
Q: Will this be a final pay
scale for Public Servants?
A: No, this is a minimum stop
gap just to account for wages lost to inflation. There is currently a new Hay
study underway which will reset all of the wages much higher eventually.
Q: Why don’t we wait until the
next Hay study is done?
A: First we can’t wait.
Public Servants have been told to wait for so long they can’t make ends meet.
Second, This guarantees a minimum fair wage increase. Third, after the last
couple of wage studies done we have seen that the results of the study may not
reflect anything more than the marching orders given to the people doing the
survey.
Q: Will we need to raise taxes
to pay for this or is it an unfunded mandate?
A: No on both counts. The
additional revenue will be generated by increasing the wages of private sector
workers by a comparable amount via Bill 111. By forcing Large corporations to
pay their employees a Living Wage the Public Structure saves millions in
subsidies (EITC, GHURA housing, Food Stamps, MIP etc) and generates Millions of
more dollars in tax revenues.
Q: Will this cause inflation?
A: No! History proves that
the wages of workers on Guam has almost zero effect on our cost of living.
Q: Won’t businesses just use
this as an excuse to raise their prices any way?
A: No. Business is
competitive by nature, if a business can undercut another and still make a
profit it will.
Q: Will this “Anti-Business”?
A: No. In fact it’s just the
opposite. When workers earn an extra dollar they spend it in our economy where
it circulates ten times so our economy will grow and local businesses will
prosper. Any additional cost that they may incur as a result of pay raises will
be made up by the increased volume of business.
pay increase?
A: Every classified employee
of the Government of Guam that doesn’t work for an autonomous agency.
Q: Why $10,880?
A: The last pay scale
adjustment was in 1989, $10,880 reflects the amount that the lowest paid Public
Servant (Pay Grade A, Step 1) has lost to inflation. People in higher pay
grades like teachers, Accountants, Nurses, engineers etc have lost more.
Q: Will this be a final pay
scale for Public Servants?
A: No, this is a minimum stop
gap just to account for wages lost to inflation. There is currently a new Hay
study underway which will reset all of the wages much higher eventually.
Q: Why don’t we wait until the
next Hay study is done?
A: First we can’t wait.
Public Servants have been told to wait for so long they can’t make ends meet.
Second, This guarantees a minimum fair wage increase. Third, after the last
couple of wage studies done we have seen that the results of the study may not
reflect anything more than the marching orders given to the people doing the
survey.
Q: Will we need to raise taxes
to pay for this or is it an unfunded mandate?
A: No on both counts. The
additional revenue will be generated by increasing the wages of private sector
workers by a comparable amount via Bill 111. By forcing Large corporations to
pay their employees a Living Wage the Public Structure saves millions in
subsidies (EITC, GHURA housing, Food Stamps, MIP etc) and generates Millions of
more dollars in tax revenues.
Q: Will this cause inflation?
A: No! History proves that
the wages of workers on Guam has almost zero effect on our cost of living.
Q: Won’t businesses just use
this as an excuse to raise their prices any way?
A: No. Business is
competitive by nature, if a business can undercut another and still make a
profit it will.
Q: Will this “Anti-Business”?
A: No. In fact it’s just the
opposite. When workers earn an extra dollar they spend it in our economy where
it circulates ten times so our economy will grow and local businesses will
prosper. Any additional cost that they may incur as a result of pay raises will
be made up by the increased volume of business.
- Guam Legislature Public Hearing Room - Jul 30, 2009 / 18:00
- - Jul 30, 2009 / 18:00
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