Notice of Public Hearing on Monday, February 27, 2023 at 9:00 a.m. in I Liheslaturan Guåhan’s Public Hearing Room (Guam Congress Building,Hagåtña).

The Committee will hear and accept testimony on Bill No. 24-37 (COR)- Committee on Rules by request of I Magaʹhågan Guåhan, the Governor of Guam.

To submit written testimony, email senatorjoessanagustin@gmail.com, or hand deliver to the Office of Senator Joe S. San Agustin at the Ran Care Building, 2nd Floor Suite 3, 761 South Marine Corps Drive, Tamuning.

THINGS YOU SHOULD KNOW

• Bill 24-37 purports to increase wages by 22% for those on the General Pay plan. Similar pay increases have already been implemented for the other pay plans.
• The General Pay Plan (GPP) covers all positions not included in the Nurse Pay Plan (NPP), Educator Pay Plan (EDU), Attorney Pay Plan (ATTY) and Executive Pay Plan (EXEC). If you have not received an increase, then this purposed pay increase likely applies to you.
• Setting Public Employee salaries play a vital role in Guam’s economy. When public employee income does not keep up with inflation business suffers and it stifles economic growth.
• When wages are set too low, Guam suffers higher levels of poverty and crime.
• The unanticipated impact of military buildup on off base housing has left even moderate income earners priced out of the housing market.
• General pay plan includes most of the lowest paid government workers. Legislature should consider all economic segments of the community, especially the poor.
• Currently the existing General pay plan purports to pay less than minimum wages to employees assigned to pay grades A-1 (7.55/hour or $15,715/annum) also A-2, A-3, A-4, A-6, B-1, B-2, B-3, B-4, C-1, C-2, C-3 and D-1. In other words, Employees slotted at any of these thirteen pay grades would earn less than minimum wage in violation of law.  This is a clear indication that the entire pay plan is in desperate need of updating.
• This pay plan has not been updated for @10 years.
• Government must adjust the wages upward over time to ensure that employees are able to enjoy the same standard of living over time. Wages must keep up with rising prices and inflation.
• If Gov wages do not keep up with rising cost of living, government will lose skilled and educated workers to other jurisdictions where the standard of living is better.
• Except for the military construction, Guam businesses are experiencing a contraction, or decline, if wages are not increased for employees, inflationary results will begin to have a negative effect on the economy. Some businesses will start to decrease spending and cut costs. Workers in the private sector may face layoffs as demand for goods and services begins to decrease.  High levels of unemployment may follow. Many businesses did not come back after the pandemic due to poor outlook on the economic conditions.
• Under the new General Pay Plan, employees are entitled to have a one step increase in pay at the employee’s grade every year for the first 7 years. Every 18 months to step 10 and 24 months thereafter. This is a slight improvement over the old plan.
• Under the new plan, an agency head may also opt to use the superior qualifications and special needs pay-setting authority to set initial pay up to step 10. An agency head may use this authority based on the candidate’s superior qualifications or a special need of the agency for the candidate’s services.
• Even with the proposed 22% increase in pay, Guam workers will likely lag by 18% behind the nation in their respective job sector.

GFT Union officially supports the implementation of this new pay plan but remains ever mindful that wages on Guam will remain lower than our counterpart in the USA and that we must continue to fight to improve the quality of life for working families on Guam.

Please attend or send written testimony in support of Bill No. 24-37, an act to appropriate $16 million dollars for implementation of 22% higher wages for employees on the General Pay Plan.

Thank You,

Staff and Management of the GFT