Business leaders press for approval of reform bill

Emphasizing the need to save the island’s dwindling economy, business leaders yesterday pushed the Senate for the immediate passage of the comprehensive labor and business reform law.

In a meeting with the Saipan Chamber of Commerce, the business sector expressed its disappointment as it has grown impatient over the failure of the Senate to act on HB 12-39, otherwise known as the Labor and Business Reform Act.

While it does not seem to be a priority measure in the Senate, Lynn Knight, President of the Saipan Chamber of Commerce, said business leaders who attended the regular monthly meeting with the Legislature told the lawmakers of the need to have HB 12-39 signed into law. “We need the flexibility to improve our business and also to accept new investments in the future,” she said.

Senate Vice President Thomas Villagomez said he will inform Senate Floor Leader Pete Reyes, chair of the Resources and Development Committee, of the request to hold a public hearing on HB 12-39. Mr. Villagomez said there must have been a miscommunication since the Chamber’s position on the proposed measure was addressed to the House of Representative and a copy was only furnished to the Senate.

Former Chamber president Joe Ayuyu said the economic recession should push everyone to do something to help improve the situation. “What’s the hold up? Let’s get on the boat and pass this legislation as soon as possible. The economy is in pretty bad shape and I think we need to be proactive to do it right away,” he said.

Similarly, garment manufacturers have strong supported the bill as the island’s economy has not shown any improvement since the Asian recession began almost three years ago.

“What are they doing with it? It has been forwarded in the Senate for over 60 days. Now what are they doing with it? There are a number of businesses on the island that are suffering. We are screaming we need this law passed because the House has done its work,” said Richard Pierce, executive director of the Saipan Garment Manufacturers Association.

House Speaker Benigno Fitial who authored the bill said the comprehensive labor and business reform act was an effort to restore the balance in the relationship between the Commonwealth government and the business community.

Speaking before members of the Human Resources Society, Mr. Fitial said many anti business laws have been passed despite the fact that these were against the interest of the business community as lawmakers in an effort to appease the Office of Insular Affairs officials.

“The result was a series of anti-business restrictions that I believe often had little reform content but a lot of repression — repression of business investment, repression of entrepreneurial spirit,” Mr. Fitial added.

Some of the key provisions of the bill include the elimination of the minimum investment requirement needed to open a business and security deposit for foreign investors, remove the three-year limit on nonresident workers and lift the temporary freeze imposed on the hiring of nonresident workers two years ago.

“It would reject or repeal provisions that discourage new businesses or make existing companies work harder just to stay afloat. In particular, it attempts to reduce red tape and reduce the number of government agencies you the HR managers of the Commonwealth, have to deal with to bring in new workers and to manage your work forces efficiently.