Sweetheart bonus deal means academic hiring freeze

THE OUTGOING rector of the University of Panama (UP)   will pocket an estimated extra $80,000 because of a  bonus commitment  he introduced six days  before the election for his successor.

The administration of the University of Panama (UP), which takes office Oct. 1 with Professor Eduardo Flores as rector, will have to face the  financial commitment that was not covered in the 2017 budget and will likely lead to an academic  hiring freeze.

The commitment,  initiated by the controversial and scandal linked Gustavo Garcia de Paredes, is a bonus increase for academic employees who retire at the age of 75.

The bonus adds from six to 15 months of compensation for those who have worked at the school for more than 10 years. Previously, the bonus was only available for employees with more than 25 years of service and included a maximum of 10 months of pay.

The agreement creates a “special fund” for the bonuses, but there has not been any money allocated for the fund.

Flores said it is likely that the funds for the program will come from those earmarked to pay for new teachers. He anticipated having to implement a hiring freeze due to the extra expense.

Garcia de Paredes is one of those who will benefit from the bonus program which  will add an estimated $80,000 to his pension.