U.S. revives takeover bid •U.S. panel ignores nonwage benefits, local counterparts charge

The White House would try once more to introduce a law that would empower them to control Saipan’s labor and immigration functions after CNMI officials opposed takeover attempts during a four-day negotiation that ended with renewed animosity.

Talks between the Northern Marianas and the United States under the Section 902 of the Covenant collapsed Friday due to fundamental disagreement on how problems on local immigration and minimum wage should be addressed, according to officials of both governments.

The battle for control has been a wedge in the CNMI-US relations at a time when the commonwealth has been reaching out internationally, including Washington, its main financial backer, for help to revive its ailing economy.

US negotiators, led by President Clinton’s special representative, Edward B. Cohen, returned home over the weekend threatening to present a revised takeover proposal that would include a transition period to federal laws of these key issues.

But commonwealth officials vowed to thwart such plans, saying local problems require local solutions.

Fundamental differences

At the heart of disagreement is the application of federal minimum wage to the commonwealth and the lack of mobility of guest workers and participation in the economic and political system of CNMI.

According to Cohen, the local immigration and wage laws “perpetuate CNMI’s unhealthy reliance” on guest workers who, despite their large presence in the islands, are “not in a position to improve their lot by bargaining for descent wages and working conditions,” a situation he described as very un-American.

“We continue to believe that the extreme reliance on a large number of unskilled workers who lack meaningful opportunities to participate in the American political and economic system is fundamentally inconsistent with the history and fabric of U.S. immigration and labor laws and policies,” Cohen said.

But the CNMI 902 team assailed the federal government’s consistent dismissal of the non-cash benefits enjoyed by foreign labor in addition to the hourly wage of $3.05, such as housing, food, transportation, and medical care. The combined benefits would bring real minimum wage between $4.50 and $5.00, according to the local panel.

Lt. Gov. Jesus R. Sablan, head of the CNMI panel, also took note of the inconsistency in the remedies offered by his counterpart, saying the proposal to address federal concerns was primarily directed against the garment industry, a consistent provider of revenues to the cash-strapped island government.

Sablan said package of reforms has been put in place by the commonwealth to address federal concerns and should be allowed to keep control of immigration and minimum wage in accordance with the provisions of the Covenant.

New takeover proposal

In a press conference Friday, Cohen said he would draft a new legislation that would phase in the application of US laws on immigration, minimum wage and customs to the commonwealth despite protests from the local panel.

The proposal, he explained, would take into consideration the right of the CNMI to self-government and its possible negative impact on the island’s economy.

Cohen assured the impact of such proposal can “offer a significant economic opportunity to the CNMI,” whose economy has been experiencing its worst slump since late 1997.

The legislation is expected to be drafted in six to eight weeks, and Clinton’s top aide promised that he would consult CNMI for recommendations and changes.

The White House had proposed to the previous Congress a bill that sought to curtail the powers of the Northern Marianas to control its own immigration and set minimum wage because of discontent these commonwealth functions were being handled by local officials.