Mar. 19--Taking a direct hit from the global economic slowdown, the Port of Portland announced Wednesday temporary pay cuts or mandatory unpaid furlough days for roughly 500 non-unionized employees.

The move, effective April 9, is part of an effort to shave $7.5 million from the Port's budget over the next 15 months while avoiding large-scale layoffs in a tough economy.

Executive Director Bill Wyatt, whose current base salary stands at $299,990, will take the biggest cut of 10 percent. Eight top-level directors making from $222,610 to $152,370 will have the option of taking a 6 percent cut or 20 furlough days. All other non-union employees will be asked to take 15 furlough days, or the equivalent of a 4.5 percent pay cut.

"It's an incredibly tense and difficult time," Wyatt said after notifying employees via an e-mail about 4 p.m. "We did everything we could to preserve jobs. We don't have any spare people around here to begin with."

The Port, which depends mostly on airport revenue and income from barge shipments, has been hammered by the drop-off in international trade, which has hurt other West Coast ports as well. Over the past several months, the Port has seen double-digit declines across the board, from airline passengers to containers arriving at its docks.

About 3 percent of the agency's budget comes from taxpayer dollars. The Port, which has an annual budget of $263 million, is considered a government agency, though it follows many practices of the private sector, including offering employees big bonuses for the agency's overall performance as well as individual merit pay.

When times were flush, Wyatt collected $26,400 in bonuses in the 2007-08 fiscal year. That year, 115 Port employees collected more than $100,000 in total pay. This year, 82 employees have a base salary of more than $100,000.

Those added perks will be frozen until June 2010, pending an improvement in the economic climate. Along with a handful of early retirement offers and layoffs of about 25 people, the Port will save roughly 40 full-time jobs, Wyatt said.

The last time the Port experienced a downturn in business was in 2004, when two shipping companies cut service to Portland. The agency laid off 80 employees but has since added back about 50 positions.

"In 2004, people walked out the door and into another job," Wyatt said. "I'm mindful of the economy out there."

Other economic measures to preserve cash reserves and maintain business operations include lowering rates and charges to airlines that represent an important revenue stream for the Port.