WPEC opposes any takeover proposal

Business leaders have expressed opposition against compromising the Covenant provisions to allow the federal government to control local immigration, minimum wage and customs standards on the heels of several legislation under consideration by the U.S. Congress.

The Western Pacific Economic Council (WPEC) has issued its position on the federal takeover proposals awaiting actions in both houses of the Congress, noting the relentless attacks and accusations against the Northern Marianas in recent months.

“WPEC cautions against any deviation from the position that the CNMI Covenant should be protected at all costs,” the group said in a statement. “WPEC cautions against any change in position where total local control of immigration and minimum wage should be protected.”

The statement added that the group also cautions that “any hesitation in conveying a hard line against federal takeover advocates, surely will cost the CNMI in support from those members of the U. S. Congress that have protected our right to prosper as members of the American family.”

Formed early this year, WPEC is comprised of the Saipan Chamber of Commerce, the Saipan Garment Manufacturers Association, the Hotel Association of the Northern Mariana Islands, the CNMI Contractors Association and the Saipan Bankers Association.

It is headed by HANMI President Ron D. Sablan, while the executive director is Richard A. Pierce.

According to the statement, this year offers new and ever more serious legislative challenges to CNMI, particularly its “core” Covenant rights — control over immigration and the minimum wage as well as the duty and quota-free entry of CNMI goods into the United States.

The WPEC further reports that the Clinton Administration remains firmly fixed in its view that these authorities must be either revoked or significantly limited.

Thus, it continues to advocate a phased application of the Immigration and Nationality Act (INA) and of the federal minimum wage to the CNMI. It also seeks to deny use of the “Made in the USA” label and tariff privileges in the shipment of CNMI goods unless they are made by minimum percentages of US citizens.

The Administration has also proposed a tariff on CNMI goods and the loss of one half of the annual guaranteed capital improvement grants to the CNMI for three fiscal years starting in FY 2000.

It appears a hike in federal minimum wage is being given serious consideration. Organized labor has made the minimum wage a must pass issue. Unions have also insisted that it applies to the CNMI as well. While the CNMI is not a part of the debate, it is already a part of the Democratic bills introduced in both Houses.

The CNMI’s peril is great, the group said, adding it will likely come up in both House and Senate debate on the minimum wage. If both would adopt a CNMI amendment to the federal minimum wage legislation, it is likely to become law.

Senate hearing on the CNMI situation: Likewise, the Senate Energy and Natural Resources Committee Chairman Frank Murkowski (R-Alaska) has once again introduced legislation to apply the INA to the CNMI.

Although he expressed mixed feelings about the bill, he is likely to push hard for its consideration by the Senate after it is reported from the committee. It seems unlikely that even a very positive hearing record would deter Murkowski from scheduling a mark-up on his bill.

Business groups on the island strongly supports continued local CNMI control of its own immigration system, the WPEC said.

Meanwhile, the U.S. House Committee on Resources will hold a full-day oversight hearing on the CNMI scheduled for September 16, 1999.

Also in the House, George Miller (D-California), the ranking Democratic member of the Committee on Resources, has once again introduced legislation to apply INA and the federal minimum wage to the CNMI and to deny tariff-free treatment to CNMI goods not made by minimum percentages of American citizens.

WPEC said Miller will continue to take an aggressive and leading role in denouncing the abuses he says characterize the CNMI, and particularly its garment industry.

He is being aided in this effort by outside non-government groups, some of which have joined a major apparel union and a notorious class action law firm in bringing three class action law suits against CNMI garment manufacturers and their retailer customers. Other outside groups have assisted the national media in tabloid type “exposes” of the CNMI.

Miller will almost certainly attempt to add an unfriendly CNMI rider to the FY 2000 Interior Appropriations bill as he has to the last two appropriations measures, according to WPEC.

House and Senate Members have sponsored legislation to deny the CNMI use of the “Made in the USA” label and tariff-free shipment of goods to the US.

The atmosphere created by a constant stream of negative media reporting, the lawsuits and greatly increased legislative activity have made all of these threats to the CNMI more serious than in the past, WPEC said.

To possibly contain or defeat these threats will require constant attention to legislative developments and media reporting. Regardless of all other actions, effective presentations by the CNMI in hearings before Senate and House committees will be crucial.

In addition, strong advocacy by the House Resources Committee, support and understanding in key House committees considering legislation affecting the CNMI, and the protection of House procedures, it will be important to have support from the leadership in both the Houses.

All of this is a tall order given the increased negative press the CNMI has received and will receive, WPEC said.