Some CPA employees to get bonus, not salary hike

Commonwealth Ports Authority employees who have reached the highest salary level for their position will be getting a 5-percent salary bonus this December.

These employees are excluded from the 5-percent pay increase that CPA granted its personnel starting in October, following several years of salary freeze.

CPA executive director Carlos Salas said some employees have now reached the highest possible salary range for their position. While they could no longer receive further increases, the law entitles them to a 5-percent salary bonus every other year.

“It’s a bonus given every other year to people who are stuck at the last step of their pay level,” he said.

Salas, who was off-island when interviewed over the phone yesterday, said he did not have the exact number of employees who will be receiving the bonus.

In an earlier interview, Salas said over 200 workers, who have a performance rating of “satisfactory” or better, stood to receive the 5-percent salary increase implemented last October.

He noted that this was the first time in four years that airport and seaport employees will be getting a salary hike. During these years, he added, CPA employees over the past several years have accepted cross-utilization in duties, more responsibilities, and an 8-hour reduction in working hours per bi-weekly period.

Contract employees, including Salas and other top management officials, are not covered by the salary increase.

The across-the-board salary hike is reflected in CPA’s budget for fiscal year 2005 budget, which appropriates $7.7 million for personnel expenses. This amount is 7 percent greater than the $7.2 million that CPA set aside for personnel costs in FY 2004.

In the FY 2005 budget, CPA also bared plans to restore the original contribution rate of 50 percent—instead of the reduced CPA rate of 25 percent only—towards employees’ health insurance premium, “should revenue comfortably exceed forecast and achieve the required debt service coverage ratio.”

CPA noted that before the 9/11 tragedy, the authority paid 50 percent of the employees’ premium but later greatly reduced it to 25 percent to generate significant savings to CPA.

“CPA management aims at reviewing the entire revenue and expense situation at a six-month period interval for the possibility of restoring the original rate,” CPA said. “Other measures to be considered at a later time are as follows: night differential, overtime pay, and contract employee salaries.”

The ports authority forecasts a growth rate of not more than 2 percent for the airport division and zero for the seaport division.

“While we anticipate recovery in the travel market, our budget forecast is at minimal [level] in order for us to easily meet our financial target,” CPA said.