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According to a release from the Governor's office, holiday pay will be reduced from double time, to time and a half.
The Governor says the move will save GovGuam more than $4 million dollars a year.
The order took effect immediately upon its signing Friday.
EXECUTIVE ORDER NO. 2012-014
RELATIVE TO REDUCING HOLIDAY PAY TO INDUSTRY STANDARD.
WHEREAS, my administration came to office with the heavy burden of making needed changes that oftentimes called for sacrifice. We demanded accountability and excellence in public service. We curbed millions of dollars in spending by suspending pay raises and increments, and by making other changes to the way government operates; and
WHEREAS, I Liheslatura still fails to recognize the absolute need to cut spending and refuses to take action where they have a fiduciary responsibility to taxpayers to take action; and
WHEREAS, failure to act will again result in taxpayers waiting for their tax refunds as the inaction of I Liheslatura will again shortchange the Provision for Tax Refunds; and
WHEREAS, there are options available to I Maga Lahi to cut spending using the executive authority of the Governor; however, these options represent only a fraction of spending cuts necessary unless I Liheslatura leaves I Maga Lahi with no other option but to separate government employees from service involuntarily; and
WHEREAS, industry standard for the calculation of holiday pay is equivalent to one and one-half times the hourly rate of the employee, however the government of Guam calculates the compensation at double the hourly rate; and
WHEREAS, the taxpayers can no longer afford to pay holiday pay at this rate and must adjust the rate down to industry standard, effectively saving more than $4 million annually;
NOW, THEREFORE, I, EDWARD J.B. CALVO, I Maga Lahen Guahan,Governor of Guam, by virtue of the power vested in me by the Organic Act of Guam, as amended, and all other applicable laws, do hereby promulgate the following Executive Order, to take immediate effect:
- The Director of Administration is directed to amend Section 7.700B of the Department of Administration’s Personnel Rules and Regulations to reduce the compensation for holiday pay from double the employee’s hourly rate to one and ½ times the employee’s hourly rate, to read as follows: “Employees who are required, because of an emergency or other reasons, to work on holidays (or their equivalent day) shall be paid at a rate equivalent to double one and ½ timestheir hourly rate of pay exclusive of any additional pay, except as otherwise provided by statute.”
- The Director of Administration is directed to effectuate the change immediately, subject to the notice and applicable requirements under the Rule-making provisions of the Administrative Adjudication Law.
- All prior rules, regulations, policies, memoranda, or Executive Orders in conflict with this Executive Order are hereby rescinded to the extent of any conflict, upon enactment of this change in rule in accordance with the Administrative Adjudication Law.
SIGNED AND PROMULGATED at Hagatna, Guam this Twenty-first day of September, 2012.
READ the release from the Governor's Office in FULL below:
FOR IMMEDIATE RELEASE
September 21, 2012
Frustrated with the inaction and political games from the Democrat leadership of the Legislature, Governor Calvo today signed Executive Order No. 2012-014, which cuts holiday pay to industry standard. Currently, employees are given double time for work done on government holidays. The order cuts this entitlement to time and a half, saving the government more than $4 million every year.
“It’s clear from the rhetoric and inaction from the Speaker, Vice Speaker, Majority Leader, and Budget Chairman that this legislative leadership is focused on keeping their paychecks rather than paying the people their tax refunds,” Governor Calvo said. “I will exercise whatever options I have available to me that will cut spending and pay refunds without the need of the lawmaking body. I won’t jeopardize Guamanian’s rightful money just because Democrats want to play political games.”
The executive order changes the Department of Administration’s Personnel Rules and Regulations dealing with holiday pay. The amendment will go into effect after all notices and hearings have been effectuated through the Administrative Adjudication Law.
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