CUC suspends employee increases

Due to financial constraints, the Commonwealth Utilities Corp., has decided to suspend performance-base increases for fiscal year 2025.

Last Friday, acting CUC executive director Betty Terlaje issued a memorandum to all CUC employees informing them of the CUC board’s decision to suspend performance base increases of 5% for FY25 due to budget constraints.

“This is to inform you that during the regular board meeting held on Sept. 26, 2024, the board of directors, after careful consideration, decided to suspend the 5% performance base increase due to ongoing financial constraints. This suspension will take effect on Oct. 1, 2024, the beginning of fiscal year 2025, and will remain in place until further notice,” she said.

Terlaje, in her memo, expressed that CUC’s management is disheartened by the decision but it must be done for the financial stability of CUC.

“While the board and management are disheartened to share this news, we fully understand the potential impact this may have on you and your colleagues. Our primary responsibility is to safeguard the financial health of the corporation, while also striving to maintain a positive and supportive work environment for all,” she said.

Lastly, Terlaje expressed that she appreciates the hard work done by each and every CUC employee and assures them that alternative options are being explored.

“We appreciate the dedication and hard work that each of you bring to the corporation. Please know that the board of directors and management are actively exploring alternative options to address this matter. Thank you for your understanding and continued commitment to our shared success,” she said.

According to previous articles on the Saipan Tribune, CUC has been facing budgetary constraints for a number of reasons; one of those being its inability to collect outstanding receivables from the CNMI government and the Commonwealth Healthcare Corp.

The CNMI government has an unpaid balance of over $10.9 million while CUC has a whopping over $67 million as of September.

Last week, CUC and the CNMI government entered a memorandum of understanding offsetting the outstanding receivables with CUC’s unpaid Office of Public Auditor fees that they have failed to pay for years.

Meanwhile, CUC and CHCC is working on a memorandum of understanding that would help CHCC pay off its utility arrears.

Betty G. Terlaje