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Unpaid retro pay reaches $9.4-M
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Posted on Jun 16 2000
The government has owed over $9.4 million in unpaid pay raise to nearly 2,000 employees, according to the Office of Management and Budget.
In a report to Sen. Edward U. Maratita who has asked for the information in preparation for a plan to pay these overdue wages, OMB chief Edward S. Tenorio said the administration will need more time to compile and update on the financial obligation.
The Rota senator, who chairs the Senate Fiscal Affairs Committee, is looking at appropriating some funds from FY 2001 budget for its settlement, saying that the mandatory pay increase for government employees has been neglected long enough.
About 1,915 government employees on Saipan, Rota and Tinian have been waiting for their money since 1991 when Public Law 7-31 was enacted.
Under that law, all employees who had reached the maximum salary level would have received a 14 percent across-the-board hike — benefits that were granted due to budget surplus experienced by the government at that time.
While the Legislature had inserted provisions in the fiscal budget each year to ensure payment, the administration failed to implement such increase over the last few years.
Some select employees managed to collect the money due them during former Gov. Froilan C. Tenorio, but many have yet to receive the payment until now due to the financial difficulties confronting the CNMI.
Among departments and agencies with payment oversight, the largest is from the Department of Public Safety with $1.4 million in unpaid wages to 217, of whom 183 are still active.
The Commonwealth Health Center also has pending settlement of $1.2 million for 283 employees, including 189 who are still in its payroll.
Rota has 228 employees who have not received their pay raise, amounting to a little over $1 million, while Tinian has 181 employees with $907,000 in back wages.
Lawmakers are expected to begin deliberation soon on the projected $220 million budget for the next fiscal year and this early, they want to find out financial impact if they decide to include payment of the retroactive hike under the spending package. (BS)
