Guam Waterworks Authority Seeks $8.85 Million Annually for Employee Pay Raises

The Guam Waterworks Authority (GWA) is seeking to gradually increase employee pay by approximately $8.85 million per year over the next five years in an effort to compete with other employers that are attracting GWA staff. The proposed pay increases are deemed necessary to bring GWA employee salaries up to the 50th market percentile, as a recent study revealed that they are currently paid at the 5th market percentile.

GWA has been facing high employee turnover, with 163 employees leaving since fiscal year 2021. The main reasons cited for this attrition are the economic growth and military expansion on Guam, as well as the higher cost of living. The proposed pay increases are factored into GWA's pending five-year financial plan, which includes $900 million worth of water and wastewater system upgrades.

Why this matters: The proposed pay increases for GWA employees highlight the challenges faced by public utilities in retaining skilled workers in a competitive job market. Addressing these issues is vital for ensuring the reliable operation and maintenance of critical infrastructure, such as water and wastewater systems, which have a direct impact on public health and quality of life.

The Consolidated Commission on Utilities will need to approve the pay increases before they can be implemented. In addition to the proposed salary adjustments, GWA is also working to expand its recruitment efforts. This includes the development of an apprenticeship program and partnerships with local colleges to attract and train new talent.

Miguel Bordallo, GWA general manager, emphasized the importance of the proposed pay increases, stating, "We need to be able to compete with other employers on Guam, especially with the military buildup and the growth in the private sector. Our employees are critical to ensuring that we can provide safe, reliable water and wastewater services to our customers."

Key Takeaways

• GWA seeks $8.85M annual pay hike to compete with other Guam employers.
• GWA employee salaries currently at 5th market percentile, aiming for 50th.
• High turnover due to Guam's economic growth and military expansion, cost of living.
• Pay hike part of $900M water/wastewater upgrade plan, needs utility commission approval.
• GWA also expanding recruitment efforts, including apprenticeships and college partnerships.