Gov’t moves to entice businesses to hire local workers

The CNMI government is laying the ground for a possible partnership with members of the business community through an incentive package, in fresh efforts to encourage increased participation of local workers in the private sector.

A private sector employment incentive program is now being prepared by the House of Representatives, under which the government will share with the businesses the wages and salaries of local worker trainees in the school-to-employment program.

The school-to-work employment program hopes to lure CNMI college and technical or vocational graduates into private sector jobs, thereby, reducing the Commonwealth’s heavy dependence on foreign manpower.

Under the proposed measure which is currently under review by the House committee on education, permanent residents of the CNMI who graduate from a post-secondary academic, technical or vocational institution is eligible to participate in the program.

Businesses can only participate after obtaining a certificate of good standing from the CNMI Registrar of Corporations and the Department of Finance. Entrepreneurs will be asked to secure similar certification from the DOF only.

For the first year of the Private Sector Incentive Program, the government will shoulder 50 percent of the wages paid to local trainees while the employers pay the balance.

The amount shouldered by the government reduces annually to 40 percent on the second year, 30 percent on the third year, 20 percent and 10 percent on the fourth and fifth year respectively. The private sector will be required to provide the entire amount from the sixth year onwards.

The Department of Labor and Immigration will obtain a list of students eligible to participate in the program from the Northern Marianas College and the Scholarship Office, as well as high schools participating in the sanctioned on-the-job curriculum.

DOLI will be asked to develop criteria matching eligible students and graduates with a potential employer. The labor department will also institute a referral, follow-up and monitoring system to facilitate the employment of an eligible student to a private sector employer.

Gov. Pedro P. Tenorio has consistently supported efforts to encourage increased participation of local labor in the private sector, even if it will require the government to come up with an incentive package for companies that would train and employ indigenous workers.

Mr. Tenorio sought the assistance of the private sector in the government’s efforts to prepare potential resident workers by providing them with proper training.

“Our government is trying to give incentives to companies who train and hire local people. Although we recognize the fact that we need foreign workers, I think it is about time that we produce our own manpower pool,” he said.

The governor said the private sector should take the initiative in training local manpower to reduce the Commonwealth’s heavy dependence on nonresident workers which has been the subject of concerns raised by the federal government.

The administration will take the initiative to give incentives to private business owners who train and hire local people, the governor said, while adding that the CNMI would still be needing nonresidents to fill the demand from the business community.