HAGÅTÑA (The Guam Daily Post) — Guam Power Authority General Manager John Benavente is petitioning the Consolidated Commission on Utilities to approve a 2022 compensation study and adopt a unified pay scale and implementation plan for all certified, technical and professional positions at the utility.
The petition recommends giving Benavente authorization to transfer $2.3 million from nonlabor accounts to the utility’s personnel account to migrate workers to the 30th percentile of 2022 market data. However, this won’t change the overall operations and maintenance budget for fiscal 2024, according to the petition.
GPA hired consultant Alan Searle & Associates to conduct a comprehensive compensation review and to provide updated market data for 2022.
According to the petition, the timing of the review proved to be opportune for GPA, considering internal and external factors that influence the utility’s competitiveness in local and national markets.
These factors include the 22% pay increases for government of Guam workers enacted last year. Due to the pay hike, certain positions ended up with base pay close to or higher than that of GPA positions, the utility’s petition stated.
Competition with the federal government is another factor. According to the petition, the ongoing military buildup has altered GPA’s market position as employees consider various incentives, such as comprehensive compensation packages, competitive retirement and health insurance offerings, and other benefits found in the military. The utility has seen employees leave to work for the federal government, including those in crucial roles within engineering, information technology and power generation, the petition stated.
Meeting internal and external demand for critical utility-centric positions has proven to be challenging for GPA, particularly when it comes to sourcing certified, technical and professional workers within a limited applicant pool, the petition added.
Alan Searle & Associates presented its study findings to the CCU at a special meeting in October 2023.
“The consultant emphasized that GPA’s target compensation model must beat the most competitive percentile of the current market within GPA’s financial ability. Whilst any increase in market position obviously comes at a cost, this must be weighed against the Authority’s ability to attract and retain competent employees,” GPA’s petition stated.
Market results validated the utility’s market vulnerability, as the base salary pay line for many certified, technical and professional positions was below the fifth market percentile.
“Alan Searle & Associates has prepared cost options aimed at migrating GPA to a more competitive market position. The migrating options are for the 20th, 25th and 30th percentiles, cost permitting,” the petition stated.
In addition to recommending that Benavente be authorized to transfer $2.3 million for migration into the 30th market percentile, the petition recommends authorizing the general manager to implement structural pay adjustments, up to the 30th percentile and to the next percentile in 2025.
According to the recommendations, Benavente may determine the breadth and application of substeps to determine the implementation range for positions based on affordability, with the longer-term target being the 50th percentile of the current market.
The petition will be addressed in the February meeting of the CCU.
A Guam Power Authority crew works in Sinajana on Wednesday, June 14, 2023.
