Marshall Islands Government dismayed by abrupt USAKA Reduction in Force

Barely 50 days have passed since the new government settled into its first term of office when it was given notice by the United States of a USAKA (United States Army at Kwajalein Atoll) Transformation scheme which will have direct and immediate adverse impact on Marshallese employees in Kwajalein Atoll. In his briefing of the President and Cabinet last Thursday, the USAKA/RTS Commander, Col. Stevenson Reed, accompanied by U.S. Ambassador to Republic of the Marshall Islands (RMI), Clyde Bishop, laid out the details of the scheme and the impact of what he called ‘transformation activities” of USAKA.

The current RMI workforce of 1001 will be reduced to 912 by the end of this financial year when 89 workers will be laid off, and 650 will work on a reduced hour basis to match actual work requirement.

Those who will be affected the most are employees working in areas such as public works, custodial, shipping and receiving. The end of FY08 will similarly affect the US Workforce on island when 64 positions of the present 946 will be eliminated, and 350 with reduced hours. The cumulative net loss to the RMI Govt in tax revenue resulting from the planned lay off in FY 08 is estimated to be $ 400,000. The reduction in workforce is expected to continue over four years, beginning from FY 08 through FY2011.

Col. Stevenson Reed stated in his briefing that the transformation scheme which will result in workforce reduction was approved at the highest level and that there was ‘little room to wiggle.’ He said it is part of a Department of Defense strategy to ensure USAKA’s relevancy and viability, and to increase its efficiency and capability through technological improvements; a clear reference to the use of fiber optic cable technology which will make it possible to distribute certain operations from Kwajalein to Huntsville, Alabama.

The Minister in Assistance to the President, Christopher Loeak, said the subject was first intimated to him by US Ambassador Bishop a few days before the briefing. He said that while the RMI government appreciated the briefing from Col. Reed, the whole thing was a surprise. Mr. Loeak said the Government has just come to learn that the transformation scheme process has been under discussion by the various agencies of the US Government since 2004.

The government, Minister Loeak said has no idea either whether the last government was aware of the scheme and its implications. Or, if it was aware, why it did not bring the matter to the attention of the Nitijela and the public. He said it is a remarkable coincidence that the length of the period at which the lay-offs begins and estimated to end is exactly the length of the period of the first term of office of this government, that is from FY2008 to FY2011. He said the elements of our special and strategic relationship embodied in the Compact agreement should have been enough to trigger an earlier consultation between the US and the RMI government.

However, Minister Christopher Loeak, said he appreciated the frank statement from the USAKA Commander and particularly the actions that are being considered by USAKA to mitigate the impact of the reduction in Marshallese workforce. These include providing incentives to the contractors to keep RMI workforce, initiating formalized training programs to improve skill levels, and seeking other opportunities for future mitigation.

He said the government wanted to assure those whose livelihood would be affected that it will do everything possible to help cushion the effect of the lay-offs. Government officials met shortly after the briefing by the USAKA Commander to assess the impact of the anticipated transformation activities, and to explore the various options to offset the adverse consequences.

Minister of Foreign Affairs, Tony deBrum, said there is no doubt that the reduction in the RMI workforce at USAKA over the next four years will have immediate impact on families of the employees who will be laid off. He said the problem is a national issue and not a matter strictly for the Kwajalein population. Many of the workers are originally from other islands of the country, and what is going to happen to them will obviously affect the support they have been giving their families members living outside of Kwajalein.

Minister de Brum said he was particularly dismayed by the fact that when he inquired from the US military representative last year at the JCM meeting in Ebeye to confirm whether or not there was going to be any reduction in the RMI workforce, the answer was in the negative. He said the government is looking closely at a range of options to determine the extent of their effective contribution towards providing viable solutions to the problem.

- RMI President's Office, Majuro, Marshall Islands, March 3, 2008