Garment labor capped •Governor: Violations will be dealt with severely

Under imminent threat of a federal takeover, Gov. Pedro P. Tenorio has signed a controversial bill into law imposing an absolute cap on the number of workers in the garment industry in yet another bid to dampen efforts to apply US labor and immigration laws in CNMI.

After years of uncontrolled entry of foreign labor, the legislation finally sets at 15,727 the total number of aliens that will be allowed to work in the garment sector from management positions down to line workers.

The aggregate ceiling will be distributed among licensed apparel manufacturers in the Commonwealth and will include non-resident workers whose application remain pending with the Department of Labor and Immigration. The cap also covers industry workers with valid permits but have not entered the CNMI, as well a manpower transfers.

The nonresident worker quota of a garment manufacturer whose license will be revoked or will not be renewed will be considered lapsed, thus bringing down the total limit imposed on the industry.

The measure, put in place as part of a package of reforms to clean up local labor and immigration policies, is the first attempt of island leaders to clamp down on garment workers whose growing number over the years, along with other aliens, have worried federal officials because of a host of problems spawned by their presence.

While existing laws disallow entry of new garment factories into the Northern Marianas, the legislations put in motion in the past failed to institute controls on the maximum number of workers the industry can employ.

Cap raises number of workers

The ceiling, however, reflects an increase of over 2,000 from the current level of approximately 13,000, but the governor suggested that the cap may be rendered moot in light of the expected slowdown in garment production because of reduction in orders from US buyers.

Tenorio explained that “although the figures may suggest that the total numbers of nonresident workers in the CNMI will increase, this is somewhat misleading…Given the current climate in the garment industry, we anticipate there will be layoffs and cutbacks rather than expansions.”

It will be recalled that during the deliberation of the bill, put together by a special House committee chaired by Rep. Oscar M. Babauta, Speaker Diego T. Benavente pressed members of the lower chamber to shoot down the proposal.

Lawmakers opposed to the measure argued the legislation, which they said was “an addition rather than an attrition”, would only strain local resources and further ruffle CNMI-US ties.

Garment manufacturers in the islands have warned local leaders that they may have to slash jobs after mainland retailers, worried over the $1 billion class action lawsuit on alleged sweatshop conditions in factories here, because of lesser orders.

Industry members say cutbacks in orders would forced them to relocate to other countries or reduce manpower by 10 percent.

Warnings

In his letter to the Legislature after approving Public Law 11-76, Tenorio said while his administration will provide incentives to garment companies complying with local and federal laws, he warned that severe penalties will be imposed on violators.

“I remind garment manufacturers that I expect them to comply with all CNMI and federal laws and regulations. The CNMI will impose harsh penalties on those employers who violate our laws, including cancellation of permits,” the governor said.

The law also provides criminal penalties for any Commonwealth employee who would be found issuing official document that would facilitate entry of a non-immigrant worker, an offense considered a felony.

A government employee found guilty of violating the law will face a jail term of up to five years, fines of up to $10,000 and termination. A person convicted will be barred from government employment for five years.