Labor: CNMI will likely exceed CW cap

With four more months into the current fiscal year, the CNMI can only apply for about 2,000 more workers to have Commonwealth-only status for Fiscal Year 2016.

A more current statistic showed that a total of 10,794 CW beneficiaries have been approved, according to data provided by Labor Secretary Edith DeLeon Guerrero based on the amount of funds the CNMI Treasury has received from the $150 CW supplemental fees.

“The numbers processed and/or approved for the current FY 16 CW-1 CNMI allocation indeed shows a higher number compared to the prior fiscal year,” DeLeon Guerrero told Saipan Tribune.

“Our count based on the amount of funds transferred down to the CNMI Treasury is showing a total of 10,794 which means we only have 2,205 left on the allowable allocation for FY 2016 of 12,999,” she added.

This also means that more than $1.6 million has been received by the Commonwealth’s coffers to fund ongoing vocational educational curricula and program development.

The U.S Citizenship and Immigration Services uses the employment start date of a CW-1 beneficiary to determine in which fiscal year cap it will be counted.

This means that petitions filed for FY 2016 have employment start dates between Oct. 1, 2015 and Sept. 30, 2016.

The current numbers indicate the CNMI’s need for foreign workers and the likely scenario that the needs will exceed the cap.

“It is very apparent that the current numbers will most likely than not exceed the allowable cap of 12,999 (we are only nine months into the current fiscal year allocation),” DeLeon Guerrero said.

According to the USCIS, when the CW-1 cap has been reached, they will not accept any cap-subject petitions and reject petitions and return all filing fees to petitioners including CW-1 petitions for extension of stay, which are also subject to the CW-1 cap.

With a rejected extension petition, the workers will no longer be permitted to work beyond the validity period of the previously approved petition.

“The beneficiaries must seek another nonimmigrant or immigrant classification under the provisions of the Immigration and Nationality Act, or depart the CNMI after their CW-1 validity period has expired,” USCIS states.

Worker demand increase vs annual reduction

DeLeon Guerrero said that the current numbers is “an indication of demand for more workers to populate the workforce pipeline” for the growing private sector industry for all three islands particularly on Saipan.

“Plans for economic growth and construction-related activities will definitely demand for more workers and upon completion workers for operations,” DeLeon Guerrero said.

For DeLeon Guerrero, the numbers are not surprising at all since the projected worker needs of developers are included in the files that they submit with regulatory agencies “which includes the count of workers necessary for operations of their projects upon completion.”

“The current numbers is reflective of existing businesses and ongoing developments,” DeLeon Guerrero said, “Existing business expansions are also part of the anticipation as they respond to the growing need to provide the necessary services to the growing economic development projects that we are currently witnessing.”

She added that the validity of the data “will definitely help and is key to the 902 discussions.”

In FY 2015, only 9,609 CW beneficiaries were applied for and approved out of the 13,999 cap.

However, while demands for foreign workers increases as shown by the trend, the CW cap will continue to go down as the CW program and the transition period nears its end in 2019.

The Consolidated Natural Resources Act (CNRA) of 2008 requires that an annual reduction in the number of individuals who may be given CW-1 status each fiscal year until they reduce it to zero two years from now.

It is not clear how much USCIS will reduce the cap by the next fiscal year, but it is clear that they are mandated to reduce the number and that they have in no way be able to increase it.

In 2011, a cap of 22,417 was determined which drastically dropped to 15,000 in 2013. A thousand was slashed from this number for the 2014 cap, while the cap was only reduced by one beneficiary for 2015. Another 1,000 reduction was implemented for the current year.

According to DeLeon Guerrero, they continue to ensure that every qualified and willing to work status qualified participant is given the opportunity for employment.

“The CNMI Department of Labor continues to monitor and enforce the employment laws of the CNMI ensuring that every qualified and willing to work status qualified participant is given the opportunity for employment that they are qualified for while also ensuring that employers are exercising good faith effort and prioritizing the hiring of status qualified participants,” DeLeon Guerrero said.