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CUC: We’re cutting personnel spending
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Posted on May 30 2006
The Commonwealth Utilities Corp. is taking steps to reduce personnel spending, according to acting CUC executive director Tony Guerrero.
Guerrero told reporters that the utility had been revamping its personnel policy and part of it involves reviewing the salaries offered to employees from entry-level to high-ranking positions.
“CUC has been generous [in paying employees]. No doubt about that. That’s why we’re looking at ways we can cut our personnel spending,” he said.
However, he was quick to add that CUC provides services that require a lot of professional support. Lowering compensation levels may make it difficult to attract experts to work for CUC, he said.
The cash-strapped utility is currently seeking a $40 million loan from the NMI Retirement Fund. The CNMI government pledges repay the loan over a period of 20 years, with 7.5 percent interest.
Documents show that some CUC officials are paid salaries amounting to over $80,000.
Almost a quarter of CUC’s $70-million budget in fiscal year 2005 was allocated for the payment of utility personnel. CUC had about 350 full time employees as of last year.
Aside from salaries and wages, CUC employees receive overtime compensation, on-call compensation, typhoon differential, retirement contributions, housing allowance, health insurance, Medicare, and other benefits.
