Bill clips DOLI’s power to hear labor disputes

Legislation diminishing the government’s role in reviewing employment contract of nonresident workers has cleared the House of Representatives after insertion of provisions that will ensure workers’ protection.

Under the amended version of HB 12-275, offered by Judiciary and Government Operations Committee chair Rep. Dino M. Jones, the Department of Labor and Immigration will also be stripped of the authority to hear disputes arising from the contract forged between an employee and employer.

If it becomes law, it will be handed over to the court to litigate the matter, instead of through the administrative proceeding conducted by DOLI, which is stipulated in existing policies.

The proposal also calls for filing of the contract with the department, but without the time-consuming review process under the current practice.

But the employer will still be required to report to the Division of Employment Services to determine whether the positions to be occupied by nonresident workers do not have local applicants.

By setting the minimum guidelines in the legislation for the terms and conditions of the contract, lawmakers are trying to ensure that workers’ protection is built within the mechanism.

Among the guidelines proposed are that deductions, such as room and board, must be spelled out in the contract and should not exceed actual costs incurred by the employer; a one-day off from work; compliance with wage laws, bonding as well as coverage of medical expenses of up to 60 days by the employer.

Repatriation of the worker who is not renewed should be made within five days after the termination of the contract. The duration of a contract or any renewal should not exceed six months, according to the bill.

Proponents of the measure maintained overhauling the current process of documenting nonresident workers on the islands would speed up release of work permits and provide relief to the private sector.

“This will allow employer and the employee to negotiate freely on the terms of the contract,” said House Floor Leader Oscar M. Babauta.

He noted that should the measure get enacted, terms such as work hours can be negotiated by the two parties without intervention from DOLI.

Opponents of the bill earlier have expressed concerns that the proposal could worsen labor problems facing the CNMI and allow unscrupulous businessmen to take advantage of their workers.

“I don’t think that this would allow what opposition has claimed [increasing] labor complaints,” explained Mr. Babauta. “This will only provide employers more of a hand in addressing their personnel needs.”

He added this is the flexibility that most companies and business establishments need at this time of economic crisis confronting the islands.

HB 12-275 now heads to the Senate for action.