USW Asserts Virgin Islands Economic Stability Act Violates Existing Law

Public Employees Asked to Take 18 Percent Wage Cut

Contact:
Jerry Jackson, USW, 340-778-5634 (St. Croix)
Randy Allen, USW, 340-774-8510 (St. Thomas)

St. Thomas—The United Steelworkers Union (USW) asserts the Senate’s passage of the Virgin Islands Economic Stability Act of 2011 (VIESA) is a potentially illegal action and that it opposes Governor John deJongh, Jr.’s signing of the legislation into law.

In a June 30 letter to Governor deJongh, USW District 9 Director Daniel Flippo wrote:  “It is our position the government’s action violates Chapter 25, Section 532 of the statute, which provides that employees with one or more years of service shall be dismissed without prejudice and given the right to re-employment. The Bill of Rights contained in Section 3 of the Revised Organic Act further provides that no law shall be enacted that deprives any person of life, liberty or property without due process. Further, no law shall be enacted that impairs the obligations of contract.”

USW represents more than 1,500 U.S. Virgin Islands government employees and has 16 collective bargaining agreements with the territorial government. These employees work in all areas of the government, such as the police department, Bureau of Motor Vehicles and the Departments of Finance, Agriculture and Tourism.

Besides being deprived of 8 percent of their salary under the Economic Stability Act, government workers have also foregone the 10 percent wage increases negotiated between their unions and government that have not been paid. This amounts to an 18 percent wage reduction from what the employees should be earning.

“Regardless of the legality of the 8 percent reduction contained within the VIESA of 2011, clearly a total of 18 percent would be not only illegal but immoral,” Flippo wrote. “It cannot be denied that this law directly impairs the legal obligations and rights afforded those public servants with regard to layoff and dismissals as contained in the collective bargaining agreements.”

Employees with over 30 years of service have to contribute 3 percent of their wages to their retirement plans under VIESA. When their contribution is added to the 8 percent wage cut they have to shoulder an 11 percent reduction in pay.

USW members have already made significant sacrifices to the government, having given up negotiated wage increases from 2005-2009, Flippo wrote. For a copy of Director Flippo’s letter, go to:  www.usw.org.

The USW is the largest industrial union in North America and has 850,000 members in the U.S., Canada, and the Caribbean. It represents workers employed in metals, rubber, chemicals, oil refining, atomic energy, government and the service sector.

Click Here for a copy of Director Flippo’s letter.

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