2023 Laws of Puerto Rico › TITLE THREE - Executive (§§ 1 — 9311) › Chapter 114 - Government of the Commonwealth of Puerto Rico Special Fiscal and Operational Sustainability Act (§§ 9101 — 9153) › Subchapter II - Measures To Cut Back On Spending In The Executive Branch (§§ 9111 — 9129) › § 9123 - Fiscal control in public corporations

During the effective term of this Act, all public corporations shall suspend the financial terms negotiated under collective bargaining agreements in effect having a direct or indirect economic impact on the operations of the public corporation that aggravate the budget situation thereof or whose suspension is warranted to improve its budget situation. The non financial terms that could have a direct or indirect economic impact include, but are not limited to, the following:
(a) Training, skill-building, and development plans, except for those circumstances in which it is extremely necessary, and in accordance with the criteria established in this subchapter;
(b) Paid leaves to pursue education, attend seminars, courses, or workshops that are inconsistent with the criteria established in this subchapter;
(c) Paid leave and time off without charge to any leave;
(d) Any provision that prevents assigning or reassigning tasks to employees, group of employees, job classification, level or appropriate unit in order to render the administration and operation of the public corporation more cost efficient and meet the criteria of this subchapter;
(e) Any provision that prevents the subdivision of tasks or assignment of work schedules to employees, group of employees, job classification, level or appropriate unit in order to render the administration and operation of the public corporation more cost efficient and meet the criteria of this subchapter;
(f) Any provision that prevents the subcontracting of tasks assigned to employees, group of employees, job classification, level or appropriate unit in order to render the administration and operation of the public corporation more cost efficient and meet the criteria of this subchapter;
(g) Provisions regarding the limitations on management or administrative rights of the employer in order to render the administration and operation of the public corporation more cost efficient and meet the criteria of this subchapter;
(h) Provisions or terms compelling the employer to faithfully comply with what has been agreed or accepted, regarding matters that are in conflict with the provisions of this subchapter;
(i) Requirements to use seniority, to the extent the provisions on seniority are contrary to the provisions of this subchapter II or constitute a limitation to change duties, promotions, demotions, relocations, transfers, details, or other transactions needed to prevent services from being affected, in order to render the administration and operation of the public corporation more cost effective and meet the requirements of this subchapter.
If any questions arise as to whether a specific provision of a collective bargaining agreement has a direct or indirect economic impact on a public corporation that aggravates its budget situation or that must be suspended to improve the budget situation, a consultation shall be submitted to the Government Development Bank, which shall reply to the same within a term not to exceed sixty (60) days. The reply to said consultation shall be binding for the public corporation submitting the same.
Provided, further, That public corporations shall recognize to both union and nonunion employees their vacation leaves accrued as of the effective date of this Act; however, the excess thereof accrued before and during the effective term of this Act shall not be liquidated in cash. Public corporations shall establish a plan whereby both union and nonunion employees shall exhaust the leaves accrued in excess so that no excess is carried over after the effective term of this Act.
Provided, further, That sick leaves accrued in excess by union or nonunion employees of the public corporations before the effective date of this Act shall be frozen at the pay rate in effect as of June 30th, 2014, and the liquidation thereof in cash shall only be made in the event of separation from public service. Any sick leaves accrued in excess after the effective date of this Act, as well as that accrued as of December 31st of each year, shall be used on or before June 30th of the year following the year in which it was accrued; after said date such balance shall be forfeited.
Beginning on the first year of the effectiveness of this Act, and annually for the next three (3) years, every public corporation shall establish a process whereby the Executive Director of the Entity and the representatives of their respective unions shall assess, in a transparent manner, the financial situation and the fiscal reality of their respective public corporation. If, in light of the assessment, in accordance with the mechanism adopted, it is established that the public corporation does not have an operating deficit, but a stable financial situation, and does not depend on the General Fund for its operation, it may begin negotiating the terms of the collective bargaining agreement that had been frozen under the provisions of this Section. Once the effective term of this Act expires, the collective bargaining agreement in effect at the time of the approval of this Act shall be reestablished for the remainder of its effective term, if any, and shall apply prospectively.
History —June 17, 2014, No. 66, § 17.