Senate committee concerned over effect of pay raises on local business

Pago Pago, AMERICAN SAMOA — The government’s salary increases have created new problems for the private sector, now faced with workers leaving to work for ASG and this is the same dilemma encountered by two semi authorities agencies, which are losing workers, said Sen. Magalei Logovi’i during a Senate committee hearing on Monday.

“You open one can of worms and you’re going to create a lot of problems,” Magalei told ASG witnesses at the hearing that included Human Resources director, Lynn Pulou-Alaimalo, ASG Budget Office director, Catherine A. Saelua and Attorney General, Fainu’ulelei Falefatu Alailima-Utu.

The Tualauta senator also told the witnesses — particularly Pulou-Alaimalo, whose department had conducted the assessment and evaluation of the government’s new pay scale, along with recommended increases — that many in the private sector are complaining to senators of losing workers to ASG over the government’s new salary increases.

“So what you’re doing is, more or less, you’re killing the private sector,” Magalei told the ASG witnesses, who were summoned along with acting Treasurer Levi Reese, to answer senators’ questions on the funding source for the new ASG pay increase. (See yesterday’s Samoa News online for story on pay increase funding.)

The committee also wanted to get more information and a report requested by Sen. Togiola T.A. Tulafono during a separate hearing early this month, on the members of the ASG task force or group that was tasked with the assessment, evaluation and recommendation of the new pay scale for ASG that went into effect on July 1st.

In particular the committee requested a full-detailed report of the results of the assessment and study, who was involved, and the process involved in reaching the government’s new pay scale. These details were requested because it involved the entire ASG workforce.

The study came under the purview of the governor’s Compliance Review Committee (CRC), established earlier this year, which was tasked to review all expenses related to COVID-19 as well as all government and employment actions from January 1, 2019. They were also tasked with the review of the general pay scale for the workforce.

During Monday’s Senate hearing, Pulou-Alaimalo explained that the task force, which conducted the first review and assessment, were DHR employees, such as analysts. And there was also the CRC panel.

Magalei queried if the ASG Commerce Department was involved, to which Pulou-Alaimalo said “yes”.  Magalei explained that the reason for the question is due to the fact there are many complaints from the private sector, seriously impacted with the ASG new pay scale, which results in their workers leaving to work in government.

He told the ASG witnesses that the private sector should also be protected at the same time from this type of situation. And many in the private sector have voiced their disappointment with senators over the ASG’s salary increases — taking away workers needed by businesses.

He recalled testimony during the Fono Joint Budget Committee hearings last week, where even the American Samoa Community College is losing instructors who have resigned to work at the local Education Department where the pay scale — under the new reclassification — offers higher salaries.

“So you see the problems created,” he said, noting that even LBJ Medical Center is losing its workers, who want to work in ASG’s Executive Branch. He said even nurses have also left for higher pay at the executive branch since LBJ can’t afford the new government pay hikes.

As previously reported by Samoa News from last week’s budget hearings, ASCC is proposing higher salaries for instructors and others in FY 2022 while LBJ is awaiting discussions with the governor on financial assistance to meet the new government pay-scale.

During Monday’s committee hearing, Magalei pointed to another issue facing the private sector and that is the federally mandated minimum wage increase of 30 cents per hour effective Sept. 30th this year.

(Samoa News should point out that the federally mandated minimum wage increases are until American Samoa (as a whole) hits the current “federally mandated” one — which is $7.25. The current ASG executive branch minimum wage hike, effective July 1, 2021 —  has jumped to $7.25, meeting the federally mandated level.)

He called on the witnesses to take into consideration concerns and complaints from senators during the hearing, as this is “our whole government” not just one-branch of government involved.

Additionally, the Fono has sought a clear and thorough briefing on the new pay scales but didn’t get one. He said if the issues are clearly explained to the Fono, then lawmakers will have a better understanding and respond accordingly to complaints and concerns from their constituents and others in the community.

As the nearly one-hour hearing headed towards its conclusion, Magalei reminded Pulou-Alaimalo the report originally was requested for details of the task force involved in reviewing and assessment as well as recommendations for the new salary increases. He said the Senate needs the report to show the basis used by ASG to raise salaries.

For his parting statement, Magalei told the DHR director that many lawmakers — including himself — don’t agree with the logic behind the new set salaries for directors and deputy directors, per a mandate by the governor.

For example, an Executive Branch office with only 4 employees has the same salary as a director overseeing large departments. “To me it’s not fair,” he said, and cited another example — the new salary reclassification for the White Collar pay scale, for a teacher who holds a doctorate degree is $70,000 compared to a director whose office only has 4 employees.

He recommended for the DHR director to revisit this matter and make recommendations to the governor. These could include taking into consideration different responsibilities and duties for directors with large departments compared to smaller ones. And the same recommendation should be made for deputy directors — for smaller offices compared to larger departments.

Pulou-Alaimalo told lawmakers last week that it is a mandate by Gov. Lemanu Peleti Palepoi Sialega Mauga that set the salaries of Executive Branch directors at $70,000 annually and deputy directors at $65,0000. (See Samoa News online edition Aug. 3rd for details.