CPA revives 80-hour work schedule

Due to the improvement in its financial situation, the Commonwealth Ports Authority board reinstated Friday the 80-hour bi-weekly work schedule of its employees beginning Nov. 7, 1999 after a thorough review of its finances and revenue projection.

The ports authority cut down the working hours of its employees to 72 per pay period six months ago as part of the austerity measure put in place to deal with declining revenues.

“This means so much to employees who have sacrificed a lot. They have been pleading for the return to the regular work hour because they have loans to pay,” said Carlos H. Salas, CPA executive director.

However, the board has imposed restrictions on overtime work to emergency cases only. At the same time, management will continue to encourage CPA personnel who are already eligible to retire to do so.

“Any vacant position shall not be filled unless the board determines in consultation with the executive director that the position is critical and must be filled,” the board said in a resolution. CPA employs 222 workers.

CPA Board Chairman Roman S. Palacios said the ports authority had been wanting to return to normal working hour schedule earlier but they had to exercise extreme caution because of financial uncertainties.

“We know we have a responsibility to the employees, but we also have to consider our obligation to pay our debts. Since Christmas is just around the corner, we hope this would give them enough time to save a little money for the holiday season,” said Palacios.

As a result of the continuous decline in visitor arrivals and reduction in number of flights to the Commonwealth, the ports authority was forced to carry out deep cost-cutting measures early this year to survive the effects of Asia’s financial crisis.

CPA board director Roman S. Tudela said the reduction in working hours was meant to save jobs since the ports authority would be forced to let go of some employees during the height of the crisis.

He said CPA’s contribution to the employees’ health insurance benefit will still remain at 25 percent. “We will go back to our 50 percent contribution when we have a much improved financial situation. In fact, we are still giving a higher rate because employees in other agencies are receiving only 20 percent share,” he said.

The CPA management will also undertake measures to invest CPA’s non-bond funds in financial institutions that can provide a maximum rate of return on such investment.

According to Salas, the board has authorized management to invest its money currently deposited in the Bank of Guam to other institutions that offer high yield type of investments. “We have been evaluating the different portfolios and we are looking at various options,” he added.

The board’s resolution added that CPA management will continue to closely monitor its revenue generation and minimize operational as well as maintenance costs and expenditures.

The ports authority also increased the wharfage fees, dockage fees, port entry fee, bunker fee and home port fee in July 1999. The board decided to delay the increase in airport passenger fees and even implemented an airline incentive program to entice more carriers to service the .CNMI