Business groups lobby for reforms

In a last ditch effort to save the Omnibus Labor and Business Reform Act of 2000, business leaders yesterday appealed to the Senate for its immediate passage as the island’s economy remains stagnant.

Saipan Chamber of Commerce president Lynn Knight said the bill will greatly benefit the business community as it will remove many costly restrictions which have stunted the growth of the businesses.

The Asian economic crisis coupled with protectionist laws that were put in place in the past few years only hampered the business development which include cutback in working hours, reduction in salaries and downsizing of staff.

“Let the free market forces take their course and you will see that wages will gradually increase and there will be more opportunity for local hires in good paying jobs. If business prospers, the community prospers. Leave these protectionist laws in place and our downward spiral will continue,” said Ms. Knight.

Hotel Association of Northern Mariana Islands president Ron Sablan urged the Senators to set aside their personal or political interests for the good of the community by allowing the passage of HB 12-39.

“To be blunt and truthful, our economic condition is serious, not only for the hotel industry, but for most of the business community. It’s time that we look at what’s good for the local economy and for our local people without being overly concerned about what Washington thinks,” said Mr. Sablan.

At present, most of the businesses are concerned about the possibility of future layoffs of local employees if the economy continues as it is. “How many more bankruptcies and business closures need to happen before you — our political leaders understand the plight of today’s hardship for the business community,” he said.

Hotels are 365-day-a-year employers with wide variety of jobs to fill and each requiring diverse skills: from housekeepers to gardeners, waiters and waitresses to power plant technicians. In short, all of these positions must be filled at all times, he added.

While they pressed for the bill’s passage, business leaders sought the restriction imposed on the hiring of accountants and clerks be removed as this would basically force employers to hire away employees from one another.

Most accounting positions require certain educational requirements which are offered to a limited extent at the Northern Marianas College. Unfortunately, the number of graduating students is clearly insufficient to meet the needs of entry level positions and there are no graduates currently at the professional level to fill up the vacancy in accounting jobs.

Under the bill’s current language, upon transfer of the Japanese financial controller back to head office or another overseas post, the accounting position will be required to be filled by either a U.S. citizen or a foreign worker who has resided in the CNMI for the past 12 months. This provision will be a significant hindrance for new Japanese investment as these companies would like their own people to assume key management positions, Ms. Knight said.

The Chamber and HANMI recommended that incentives be provided to businesses that will grant specifically defined training to local employees in the area of bookkeeping and accounting.

Saipan Garment Manufacturers Association acting chair Richard A. Pierce hailed the Committee for holding the public hearing as he emphasized the need to pass the bill.

“Our support for the repeal of certain existing laws does not mean that we are against setting limitations and boundaries. It means that we want to re-prioritize the long standing conflict between businesses’ right to do business and the governments’ control of their source of revenue,” he said. (Lindablue F. Romero)