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An ideal labor policy
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Posted on May 14 2004
Q. What in your view may be an ideal labor policy for the CNMI?
A. A lot of juggling action has been around designing and implementing the local labor policy both due to external and internal pressures. Lately there is a renewed attempt to revise this policy by legislative action. A lot of supporting and opposing arguments are being aired on the proposed amendments but very few from the small workforce employers who stand middle of nowhere. Whether an ideal labor will be formulated as a result of this renewed attempt remains to be seen.
An ideal labor policy in my view is one that guarantees 100 percent employment of residents should they chose to be part of the workforce. Though this goal has been desired and safeguards are incorporated in the policy, the end result has been less than satisfactory. A requirement of hiring 20 percent locals which was lowered to 10 percent and now in the current bill starting from 10 percent and eventually going up to 20 percent is one example of juggling action on this issue. How naïve an action of mandating resident employment level that is not possible for the private sector to fulfill, given the available resident workforce over and above the needs of public sector. Raising minimum wages to around five dollars is also being pushed to encourage residents to go into private sector jobs.
Now, you might think that I am juggling the ball on this issue. Not really. I’m trying to broaden the view on this issue. Who can prove that five dollars an hour wage will entice the residents to line up for private sector jobs? Given the cost of living in the CNMI, it may be absurd to think that one can support an independent living on American standards unless one continues to join mom’s dining table.
In summary, an effective labor policy calls for fortifying health and safety laws at workplace in line with federal laws and leave wages subject to negotiation between employers and employees. To ensure full employment of locals, reserve certain business activities for the local entrepreneurs.
