DOLI calls for thorough review of reform proposal

There is a need for a thorough study that would identify whether economic benefits would outweigh the problems posed by a pending legislation in the House of Representatives, according to an analysis report prepared by the Department of Labor and Immigration.

The report, which was submitted to the House Committee on Commerce and Tourism, recognized the economic benefits that can be derived from its implementation.

However, DOLI also sounded the alarm for potential problems associated with the opening of the Commonwealth’s immigration doors to more nonresident workers.

An increased number of nonresident workers in the CNMI would strain current governmental resources allotted to dealing with the situation, said the DOLI report which was drafted by Asst. Attorney General Andrew Clayton.

Mr. Clayton’s analysis report said CNMI is likely to see a return of the types of problems which were present before the reforms were enacted in the past several years should the legislation proposed by House Speaker Ben Fitial become a public law.

DOLI is concerned that lifting the moratorium law would pave the way for the resurgence of numerous labor complaints that may be filed by displaced employees who will be replaced by new arriving off-island workers.

At the same time, the labor department appeared apprehensive in supporting a provision in House Bill 12-039, which seeks to eliminate permit expiration transfers, on grounds that it would shift the balance of power between employee and employer squarely to that of the employer.

Mr. Clayton said there is also no benefit to the proposed elimination of the provision of consensual transfers since it would restrict businesses with too many employees to transfer a worker to another business which needs additional staff.

Benefits

On the other hand, repeal of the hiring moratorium law would be beneficial to existing industries in the Commonwealth that are in need of additional workers considering the insufficient number of available local labor pool.

“By eliminating the moratorium, many larger businesses will be able to staff as they require rather than search for individuals currently in the Northern Marianas to fill their needs,” Mr. Clayton’s paper added.

DOLI underscored the benefits that come along with proposal to repeal the three-year limit law which, it said, would provide greater flexibility in hiring the most qualified nonresident workers whether they have been in the Northern Marianas for a long period of time or are outside the CNMI.

It pointed out that the problems associated with the repeal of the three-year limit law is not great. It will only open the CNMI government to criticism that it has a large underclass of nonresident workers with no legislative representation.

However, foreign workers holding professional or executive positions and whose annual salaries are at least $30,000 or $14.42 per hour are exempted from the three-year limit.

There are an estimated 28,000 to 30,000 foreign workers in the Northern Marianas, holding more than 90 percent of the jobs in the private sector, and their growth on the islands has worried federal officials due to a string of social and economic problems arising from their presence.

According to DOLI, House Bill 12-039 will allow many businesses to operate more efficiently and would therefore produce greater wealth for their owners or shareholders.

“This wealth would trickle down in the economy into sectors which might not otherwise reap any benefits. In addition, governmental revenues would climb, allowing the CNMI government to fund other projects,” the labor department said.

House Bill 12-039, or the Omnibus Labor and Business Reform Act of 2000, proposes to repeal the hiring moratorium and the three-year limit laws, and to lift the cap in the number of nonresident workers in the garment industry.