KOROR, Palau (Aug. 29, 2024) —Over 250 employees of the Palau Public Utilities Corporation (PPUC) have submitted a petition to Senate President Hokkons Baules and House Speaker Sabino Anastacio, calling for legislative changes to improve their benefits and job security.
The petition comes as PPUC nears the 12th anniversary of the enactment of RPPL No. 9-4, which shifted Palau’s water and sewer utilities under PPUC and imposed restrictions, including a prohibition on providing subsidized health insurance to its employees. This restriction has been a point of contention for PPUC, which argues that it hampers its ability to attract and retain qualified personnel.
The petition, supported by PPUC Chief Executive Officer Frank Kyota, seeks amendments to Chapter 4 of Title 37 of the Palau National Code. Specifically, it asks for the ability to offer private health insurance to PPUC employees and the removal of a two-year term limit on employment contracts for staff earning more than $40,000 annually.
“The option to participate in a private health insurance program is a powerful inducement to both potential new hires and existing employees,” Kyota wrote in his letter to the legislative leaders. “It is also an employment perk that is being offered by employers outside of Palau, contributing to our emigration brain-drain.”
Kyota also highlighted the negative impact of the current two-year term limit on employment contracts, stating that it affects job security, career commitment, and even the ability to qualify for financial opportunities such as bank loans. He noted that no other employer in Palau faces a similar restriction, putting PPUC at a disadvantage in recruiting and retaining the best available employees.
Kyota has been advocating for these statutory changes for the past three years, but no action has been taken by the Olbiil Era Kelulau (OEK), Palau’s national congress. He commended the PPUC employees for taking matters into their own hands by initiating the petition and expressed hope for favorable legislative action.
“We appreciate your attention and consideration,” Kyota concluded in his letter.
The petition represents a broader call for the government to address employment benefits and working conditions for public utility employees, an issue that has been a longstanding concern within Palau’s labor market.