CPA employees back to 72 hours but…

Commonwealth Ports Authority board vice chair Roman T. Tudela gestures as he explains his position on restoring CPA employees’ work hours from the current 64 hours to 72 during a board meeting yesterday in the Aircraft Rescue and Fire Fighting classroom at the Airport Fire Station at the Francisco C. Ada/Saipan International Airport. (FERDIE DE LA TORRE)

Commonwealth Ports Authority employees, who are all currently on a 64-hour work schedule, had eight hours restored yesterday to bring them to 72 hours. But this is conditioned on CPA receiving the federal funds that have been allocated to it.

CPA’s board of directors conditionally approved yesterday the restoration of eight hours to the work schedule of CPA employees, with all five directors present at the meeting agreeing to the move.

As to the full restoration of 80 hours, that’s not possible yet, according to CPA board chair Kimberlyn King-Hinds said in a later interview. “I don’t think that we’d be able to go back to 80 hours unless the tourism industry gets back online,” she said.

King-Hinds, vice chair Roman T. Tudela, and directors Barrie C. Toves, Pete P. Reyes, and Joseph M. Diaz were present at the meeting held at the Aircraft Rescue and Fire Fighting classroom at the Airport Fire Station of the Francisco C. Ada/Saipan International Airport. Thomas P. Villagomez and Ramon A. Tebuteb were absent.

In an interview during a break in the board’s committee meeting, King-Hinds said she asked CPA management to look at their financial situation and consider restoring some of the employees’ work hours, in light of the central government going back to 80-hour work schedule.

She said she basically asked CPA management to compile all their different funding sources and their projected revenues to see if it would be possible to restore the eight work hours.

She said this is assuming that they can still continue the rent abatement and airline incentives as it relates to payment in landing fees and be able to operate using federal funds to pay their debt or operations, or utilities and the personnel.

King-Hinds said that based on their comptroller’s analysis, they are able to do the 72 hours assuming that they get all these funds that have been allocated to CPA under the Coronavirus Aid, Relief, and Economic Security Act, the Coronavirus Response and Relief Supplemental Appropriations Act, and the American Rescue Plan.

CPA received $22 million from the CARES Act and the agency has been drawing down from that fund, King-Hinds said. She said they’re also getting $5.6 million from CRRSA and $90 million from the American Rescue Plan.

“So my goal…from a fiscal perspective is to restore at a minimal an additional eight hours without compromising our ability to operate under current collections using those funds and current discounts that we’re giving for the next two years,” King-Hinds said.

Based on the analysis, King-Hinds said, they can go two more fiscal years using those funds to be able to service their debt, pay their personnel, and operate.

Before the voting to restore the conditional 72 hours during CPA’s Committee on Financial Affairs meeting yesterday, King-Hinds said she is not recommending that they go back to the full 80 hours because the revenue does not support it.

King-Hinds said but if they can afford to at least increase hours by an additional eight, that would not economically jeopardize their ability to maintain and operate for the next two fiscal years.

“I would like the board to consider the increase and add that additional eight hours to provide some sort of relief,” she said.

Tudela said he fully agrees with King-Hinds. “While we give discount to our tenants, which is fine because there is a good reason for that, but at the same time, if we have the money, I would support the lifting of the 16 hours. And for now, at least to go on 72 hours,” Tudela said.

Toves said he supports the intention of King-Hinds and Tudela, but he has a concern that majority of CPA employees on Rota would not agree. This is because majority of Rota CPA employees are entitled to Pandemic Unemployment Assistance and they get more from funding assistance from PUA when they are on austerity.

“I think the action by the board to restore back at least eight hours is going to benefit those that are not eligible or qualified to receive unemployment assistance,” Toves said.

Toves said that, while he wants to restore some normalcy to employees’ work hours, doing so is going to punish people who are receiving more PUA funds while they are on austerity than what they are going to be earning when they return back.

As to the option of allowing employees who are getting PUA to remain on 64 hours, while those not eligible for PUA will get 72 hours, CPA legal counsel Robert T. Torres said the policy should be applied across the board.

Tudela agreed with Torres.

“We have to be uniform. Whether we do it or not, we cannot distinguish who gets what, who gets more, who gets less,” Tudela said.

After explaining the federal funding sources, CPA comptroller Skye L. Aldan recommended that the restoration of eight hours be approved only when CPA already receives its American Rescue Plan allocation.

King-Hinds said she wants to follow Aldan’s recommendation. “I don’t like to count my chickens before they hatch. I want the money in the bank before I start cashing checks,” King-Hinds added.

Tudela suggested having a conditional approval of the 72 hours.

Torres suggested that the motion can be to approve the return of eight hours within the next pay period after certification of the receipt of funds for the allotment.

Reyes then made a motion as Torres suggested. The directors then voted to approve the motion.

Starting March 29, 2020, all CPA employees have a 64-hour work schedule after the board approved a 16-hour reduction as CPA estimated revenue loss due to COVID-19 pandemic climbed from $3.9 million to $6.5 million.