Labor reform aims to simplify hiring process
A House measure patterned after the Federal Labor Standards Act will seek to simplify process of employing nonresident workers in the CNMI, while safeguarding their rights, according to its proponent.
House Speaker Benigno R. Fitial yesterday introduced the legislation he said will need “a great deal of scrutiny” and public hearings before the 18-member chamber can vote on the new proposal.
While it will not entirely repeal the Nonresident Workers Act passed by the 5th Legislature, he stressed its “non-essential provisions” will be amended by the new bill to keep them up-to-date.
“This one will overhaul [that law],” Mr. Fitial told reporters in an interview after yesterday’s House session.
The key change advocated by his measure is to simplify the process of hiring guest workers in the Commonwealth by leaving the negotiation of the job contract between the employee and the employer.
Under the present system, companies have to go to the Department of Labor and Immigration to process the documents where each contract is scrutinized. “The change will basically have the employers and the employees execute employment contract, without involvement of the [DOLI],” said Mr. Fitial.
“The workers will still have their rights,” he explained. “This bill would lay out in very detail the conditions, the living and working conditions of workers.”
The proposal will also include provision to ensure fair deal for local workers, Mr. Fitial emphasized, adding that “whatever the agreement, the employment contracts would clarify the terms and conditions of the employment.”
One of the House leadership’s economic agenda, the bill is considered a priority in view of its efforts to improve ways of doing business on the island which has suffered heavily in the past two years due to the Asian currency crunch. It will also compliment the Omnibus Labor and Business Reform Act now under consideration in the lower chamber.