CPA employees to receive wage hike • Board revives 5 percent wage adjustment after two-year suspension

The Commonwealth Ports Authority Board of Directors has approved the restoration of the annual five percent increment in the wages of the agency’s employees, after having been frozen for two years due to financial constraints.

Board Chair Roman S. Palacios disclosed the five percent salary adjustment, which is equivalent to one step ahead under the Civil Service Commission rules and regulations, has been in effect beginning April 24, 2000.
However, CPA Executive Director Carlos H. Salas explained that the agency’s civil service or regular employees may qualify to the increment only after obtaining a satisfactory evaluation from the management.

In an interview, Mr. Palacios pointed out that the wage adjustment does not cover ports authority employees who were hired on a contractual basis.

According to Mr. Salas, implementation of the annual five percent increment was suspended by the CPA Administration and Board of Directors in Fiscal Year 1997 due to declining revenues, aggravated by bloated personnel and operational expenditures.

He said all civil service employees of the ports authority are qualified to receive the annual wage increase provided their performance has been evaluated to reach satisfactory levels by a review committee.
Performance evaluation will be conducted on each of the employees hiring anniversary date. The review committee will evaluate the performance of the employees in a 52-week or one-year period.

Mr. Salas said the Board of Directors approved to restore the implementation of the annual wage adjustment following findings from CPA’s financial consultant that existing level of revenues generated by the agency can afford additional expense.

Assuming that the five percent salary increase will be given to all CPA employees at one time, it would entail more than $109,000 in additional expense to the ports authority.
Although the ports authority resumed the granting of wage adjustment to its regular employees, Mr. Salas said CPA is retaining its self-imposed austerity measures that include elimination of extra working hours.

“We continue to discourage overtime because we still have the austerity measures in place,” Mr. Salas told in an interview, adding that 75 percent of their medical insurance will be shouldered by CPA employees, with the agency paying for the remaining 25 percent.

In 1999, CPA had been forced to take a painful cut in the wages of its employees, and increase non-aviation fees that include property leases in order to continue with its operations and settle its financial obligation.

Mr. Palacios said the ports authority has taken aggressive steps to intensify its austerity measures, while slashing personnel costs by five to seven percent by reducing work hours from 40 to 32 per week.

A previous review of its personnel disclosed that the agency has accumulated a total of 252 employees with a cumulative annual income of at least $8.5 million. Documents revealed that in 1994, the ports authority had only 167 employees with a combined total income of about $3.6 million.

Reports claimed the former CPA management had failed to comply with the provisions of its personnel manual in that people were hired without proper vacancy announcement.

An earlier report has also suggested that CPA reduce its expenses by eliminating unnecessary travels. It stressed that the agency’s failure to respond to concerns raised by its financial consultant has contributed to CPA’s poor financial condition.