Nena sends a restructuring bill cutting the national workforce 20%, using $3 million of an $18 million ADB loan.
What happened
Workers 57 or older could take a lump sum of six pay periods, and younger workers a larger lump sum, if they gave up future national government jobs. The first phase aimed to cut 50 positions by October 1997, saving about $800,000.
Why it matters
The ADB later rated the reform “successful,” though two states and the national government missed their staffing targets.
Who’s who
- Jacob NenaFourth President of the FSM, 1996–1999 (acting until May 1997); from Kosrae
