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CONGRESSMAN ROBERT A. UNDERWOOD Delegate from Guam U.S. House of Representatives Washington, D.C.

NEWS RELEASE April 28, 2000


Congressman Robert A. Underwood today announced that the U.S. Department of Labor has agreed to conduct a new wage survey for Guam, one based on more recent wage scales and not on the currently depressed scales.

"This new wage survey for Guam means that they will take another look at the wage list which was used for the determination of wages to be paid by Raytheon," the Congressman said. "The net effect of this over time is that we're likely to see an increase in the wages being offered to the people who are now working for Raytheon."

The Navy Department, he said, is required by the Service Contract Act to ask for wage survey data prior to letting out a service contract.

The U.S. Department of Labor is supposed to provide that data, which is then used as the basis for the wage offerings of successful contract bidders.

"When Raytheon won the Navy contract, they started first by cutting worker's time to a 32-hour work week, which is objectionable in itself, but on top of that, they then started to offer some very low wages," Underwood said. "We were very concerned as to how they arrived at those wages.

"After significant investigation on the part of my offices, we've discovered that the wage data used for this contract was dated by several years. The Department of Labor agreed that it was dated and so, after working with them for the past couple of weeks, we've come to an agreement. I have received a letter from Mr. William Gross, director of the Office of Wage Determinations, in Washington D.C., saying that there will be a new wage survey for Guam.

"We still have problems with the overall implementation of the contract, and we will continue to push for a congressional hearing, but this is good news in the sense that part of our concerns have been addressed," the Congressman said.

CONTACT: Cathy Gault at 671-477-4272

2418 Rayburn Office Building Washington, D.C. 20515 Tel: 202-225-1188 Fax: 202-226-0341 Email: guamtodc@mail.house.gov 

120 Fr. Duenas Ave., Ste 107 Hagatna, GU 96932 Tel: 671-477-4272 Fax: 671-477-2587

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