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No austerity at CPA for now but…
10-pct. cut in operations as revenue drops by 15 pct.
The Commonwealth Ports Authority has yet to adopt the Torres administration’s austerity measure to cut employees’ work hours from 80 to 72, but CPA is cutting its operations on its own due to reduced revenues.
In an interview last week, CPA board chair Kimberlyn King-Hinds said they discussed the issue whether or not to adopt the government’s austerity measures. However, considering that CPA is an autonomous agency, it can decide whether to follow or not the administration’s austerity measures.
King-Hinds
King-Hinds said they are not cutting personnel’s work hours because CPA has insurance that covers business interruptions. CPA has a total of 209 employees: 156 on Saipan, 29 on Tinian, and 24 on Rota.
King-Hinds said they are going to use the insurance funds to make up for the shortage of revenues.
CPA executive director Christopher S. Tenorio has informed the board that CPA received $9 million from their insurance company last June 14.
Tenorio said $1.12 million of the amount is for business interruption and the remaining are for damage from Super Typhoon Yutu.
King-Hinds said the Federal Aviation Administration required CPA to get insurance, which really helped them after Yutu’s devastation last October. As part of that insurance, in the event of a catastrophe like a typhoon, CPA gets coverage for loss of business interruption and for the damage.
“CPA has received the amount [and] that has been able to she disclosed that Yutu’s financial impact on CPA was a 15-percent reduction in revenue.
For the moment, King-Hinds said, CPA is not cutting employees’ hours, but they are internally cutting operations on other areas.
“We…try as much as possible not to touch personnel. And so we found other areas within the agency to cut,” she added.
In terms of operations, CPA cut 10 percent of everybody’s budget. There is a restriction on travel and a freeze on any hiring, unless it is critical.
Last June 17, the Marianas Visitors Authority board of directors agreed to cut the regular 80 work hours of its 36 employees in the CNMI, including its managing director, Priscilla Maratita Iakopo, to 72. It took effect last June Sunday.
By July, the MVA board will meet again to decide whether there is a need to maintain the 72 hours or go further down at 64 hours.
Under the new work-hour cuts, Gov. Ralph DLG. Torres reduced the operations of offices under the Executive Branch, starting with the June 23 pay period. Agencies will be closed every payday Friday beginning on July 5 until further notice.
