‘Fee increase intended to fund Labor’s Web site’

The Department of Labor yesterday sought to justify the recent increase in the fee for foreign worker applications, saying it is needed to fund the department’s new interactive Web site.

Cinta M. Kaipat, deputy secretary for the Labor Department, also said the $50 fee increase should not come as a surprise because it was published in the Commonwealth Register in September and the business sector was informed about it and even asked to comment on it.

The $50 increase only applies to business employers. They will now have to pay $300 for every approved contract. The $25 deportation fee will remain the same. Non-business employers, such as those who have one or two household employees, will not be affected by the increase.

The fee increase is expected to bring in $750,000 a year for the Labor Department. This is based on Labor director Barry Hirshbein’s estimate of 15,000 foreign workers currently employed in the local private sector.

The Labor Department says it spent about $350,000 on the equipment and software for its new automated system for processing applications. This excludes maintenance costs.

“Keep in mind also that we have a steadily decreasing [alien] workforce. There are fewer and fewer applications being submitted for processing. So the department’s total revenue may not be same as in previous years,” Hirshbein said.

Kaipat, in a press conference yesterday, took the blame for the lack of coordination within the Labor Department, which resulted in the sudden implementation of the new fee on Wednesday afternoon.

“Could we have done a better job? Absolutely. But we are doing our best here. And we will improve as we continue,” she said.

The fee increase was originally set for implementation on Saturday, Nov. 1, but the department decided to postpone it to Nov. 10 because of timing issues. When Nov. 10 came, however, Labor personnel continued to charge the old fee due to the lack of clear instruction from management. The mistake was discovered on Wednesday, and the new fee was immediately applied. As a result, employers who filed applications in the afternoon paid $50 more than those who did in the morning.

Gov. Benigno R. Fitial directed the Labor Department to go after those employers who were undercharged for applications they filed on Monday and Wednesday morning. “I want them to pay the right amount,” the governor said.

In a press statement, Kaipat defended the fee increase, saying employers must help pay for the department’s new efficient processing system.

“We funded and proved out the new Web site first, and then we changed the fee structure so we could continue operating it. We provided a much faster and more efficient alternative to job vacancy announcements. After everyone was satisfied with the way that the Web site worked, we proposed a fee increase to pay for it. Under this fee structure, the employers who benefit from the less expensive Web site alternative are the ones who contribute to pay for its upkeep,” she said.

She also said the Labor Department continues to upgrade the software for processing applications, which first rolled out in February 2008, and this costs money.

“We went from an enormous backlog in processing to a situation today in which we are virtually current on a day-to-day basis. The cost of the new processing system is also rolled into the application fee,” she said.

Further, she said, the Labor Department spent money on employment services by hiring new personnel to assist local citizens find jobs. “This is a critical function in the current difficult economic circumstances. The Labor Department cannot draw on Commonwealth resources anymore. We have to fund our operations through fees,” she added.

Kaipat maintained that the public was given enough notice before the fee increase was applied. The new fee was published in the Commonwealth Register on Sept. 25, 2008 for comment. Copies were provided to the Saipan Chamber of Commerce, the Hotel Association of the Northern Mariana Islands, and other business organizations for their comment, she said.

She added that the department responded to all comments submitted during the publication process. The regulations were available for 30 days in draft form, and then the department published its intent to adopt the regulations in final form. The notice specified that the regulations would become final and go into effect on Nov. 1, 2008, she said.