Puerto Rico union sues government over $3M in federal funds

SAN JUAN, Puerto Rico – One of Puerto Rico’s largest labour unions has filed a lawsuit accusing the government of the U.S. territory of diverting more than $3 million in federal funds as it struggles to find revenue amid a deep economic crisis.

The Central Federation of Workers said Tuesday that the money was slated for a $135 monthly salary increase for employees at Puerto Rico’s Public Housing Administration. The union agreed to hold off on a wage increase last year because of the crisis, but said it never obtained the promised increase this year after the agency received a boost in federal funds for that purpose.

The government has not responded to the federal lawsuit filed Monday. It faces other similar lawsuits as it seeks to restructure $70 billion in public debt.

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