OMNIBUS LABOR AND BUSINESS REFORM Senate eyes compromise bill

The Senate is optimistic of reaching a compromise with business leaders and the Tenorio administration on HB 12-39 or the Omnibus Labor and Business Reform bill to address concerns raised during the three public hearings conducted on the proposal.

Passed by the lower house in March, the measure is expected to be amended comprehensively before senators vote on it, according to Senate Floor Leader Pete P. Reyes who also disclosed that it would be considered for floor discussion in its next session to be held either tomorrow or early next week.

Representatives of the three large business organizations — the Saipan Chamber of Commerce, the hotel association and the garment manufacturers group — met with the Senate Committee on Resources, Economic, Development and Programs yesterday to discuss the legislation.

Administration officials, led by Labor and Immigration Sec. Mark Zachares, were also there to be part of the discussion which Mr. Reyes, who also chairs the committee, said is part of its thorough review.

“The first step is to make sure that we are all in synch and that we have a compromise bill,” the REDP chair told in an interview.

“It may not be to everybody’s satisfaction but at least it will be a bill that will address the current concerns of the business community and balance it out with the concerns that committee has as elected officials and all other current bills.”

The panel also has agreed to take measured steps in deliberating on the Omnibus bill, with plans to hold meetings with the private sector and the Tenorio administration prior to drafting of a final version.

Amendment

Although it has yet to come up with a definite position on how to go about it, Mr. Reyes maintained the committee is looking at amending the proposal to incorporate views expressed during last week’s town meetings.

“We are going to amend this. That’s the reality of this bill,” he explained. “We are going to amend this so that the concerns are adequately addressed by the committee.”

Senate Vice President Thomas P. Villagomez, who is also a member of REDP, expressed objection to repeal of the fair compensation law for local workers, saying that they will study the existing law to enhance provisions that have delayed its implementation.

The law, initially passed in 1995 and amended in 1998, has ran roughshod following failure by the executive branch to come up with regulations that would enforce its intent — which was to provide resident workers cash or in-kind equivalent of the employment benefits granted to alien workers, such as subsidized housing and transportation and medical insurance.

“We are going to look into the problems and try to make the law workable,” said Mr. Villagomez in a separate interview. “Just because it’s not working now doesn’t mean we have to dump it.”

He echoed the position of Mr. Reyes against the proposal to open up previously restricted job categories, such as secretary and bookkeeper, as well as commercial farming and fishing on the islands as they noted that a protection must be put in place for locals.

Progress

Offered by House Speaker Benigno R. Fitial, HB 12-39 seeks to repeal some of the reforms carried out by the Tenorio administration over the past two years, including the labor moratorium, the three-year stay limit and the garment attrition scheme, in an effort to enhance investment climate here and assist existing businesses during this economic crisis.

“There is tremendous progress,” said Mr. Reyes, referring to yesterday’s meeting. “There seems to be some measurement of compromise. We are trying to fine-tune the bill so that there is no area of disagreement.”

The Omnibus is considered one of key economic measures initiated by the House in a bid to boost the local economy. While the business sector has fully embraced the proposal, some lawmakers have opted to weigh impact of such a move in light of increasing federal scrutiny.

During his visit in Washington D.C. in April, Mr. Fitial said he had drawn support by leaders of the U.S. Congress, including House Resources Committee chair Don Young (R-Alaska), who described the bill as a step in the right direction.

Asked if he is under pressure to pass the legislation, Mr. Reyes said: “I don’t think I’m intimidated. The people understand what’s happening. The Senate is not going to rubber stamp this bill and send it to the governor [without amendment].”