CUC vice chair: Best option is reduction in hours rather than reduction in force

Faced with a drop in revenue and trying to find ways to cut costs, the best option for the Commonwealth Utilities Corp. right now is to reduce the work hours of its the employees rather than a reduction in force.

Deleon Guerrero

At least that’s what CUC board vice chair Weston Deleon Guerrero believes. He said the matter was discussed during the CUC board meeting held via video conference last week and that it was the CUC management’s recommendation not to implement 72 hours work schedule, but only if CUC’s finances cannot permit the 80 hours, then they look at other options.

Deleon Guerrero did not specifically say whether the board approved the management’s recommendation or not. He, however, stated that the best option at this time would be a reduction in hours, rather than a reduction in force.

“But because of the complexity of each and everyone’s contract at CUC, we the board needed to give or allow an option to the executive director,” Deleon Guerrero said.

He said that, right now, without the board’s motion to approve allowing executive director Gary P. Camacho this authority to cut hours, then his option would only be a reduction in force.

He said that’s why Camacho and his team had asked for the board to approve this opportunity to do this reduction in hours because of the contracts.

“It’s an optional addendum that would go out to each and every one of the employees. They would have the option of signing or not signing if it came down to that,” Deleon Guerrero said.

In an interview last Friday when the CUC directors were still in an executive session to discuss the reduction of hours issue, Camacho said that, based on their current policy, reduction in force is the only option available to him. Camacho does not believe that’s this would be best for CUC right now because they are already short by over 100 full-time employees. Right now, they need to ensure that they operate the system safely, efficiently and effectively, he added.

“We believe that, with all the different methodologies and cost savings out there…in our specific situation, austerity would be the best approach,” he said.
He said it is imperative that they try to do that so they continue to have the expertise on hand in all areas of the corporation to be able to continue to operate the system. Camacho said it is imperative that they have a safe working environment, with the expertise on site.

He said there is a number of different things ongoing with the variety of different grants and restoration effort between them. “It is imperative that all of it is being addressed at the same time all the time. And we believe that this methodology, this approach would be the best to ensure that…we reach our economic goal with cost reduction but not sacrifice… any of the safety and the expertise and the requirements of each project,” he said.

Camacho said he believes 72 hours per payroll is needed for the time being.

“Don’t get me wrong. There’s a lot of internal cost savings we’ve been doing all the time. We do that all the time. We were more aggressive to do earlier this year, January. And we’re doing even more implementation of cost cutting and making more sacrifices along the way,” he said.