Over NRW contract: Major policy-change on DOLI’s function splits House

The House of Representatives yesterday set into motion a major change in existing policy on the processing of nonresident workers in the CNMI by diminishing government’s oversight on the contract forged with their employer on the islands.

But the move drew opposition from some of the members as they expressed fear that such a change could lead to more contract disputes and labor problems besetting the island-government.

Under existing laws, the Department of Labor and Immigration reviews all contracts of guest workers before issuing permits to determine whether employers comply with the conditions of their employment.

But HB 12-275, offered by Rep. Dino M. Jones, seeks to remove such authority in an effort to reduce government bureaucracy and provide relief to the business community with respect to hiring much-needed manpower from abroad.

According to the findings of the legislation, DOLI’s review is “unnecessary diversion of administrative time and energy” as it noted lack of constructive result arising out of the process.

“The department should not be given this burdensome and largely pointless task,” stated the bill which proposes instead that DOLI serves as official filing center to hold copy of the contracts.

Proponents of the bill maintained it would be a major policy-change in the current practice, allowing DOLI to focus more on ensuring job placement for local workers rather than reviewing the contracts of nonresidents.

Mr. Jones claimed this has cost taxpayers nearly a million dollars in expenses every year — revenues that he said would be better used to strengthen the local employment office.

He said it is only proper to allow the employer and the employee to negotiate terms of the contract so long as they comply with all existing labor laws on the islands.
“It’s not fair for government to impose conditions on the businesses,” he said at the session.

Worse

But Rep. Diego T. Benavente, who led opponents of the measure, warned doing so would only worsen the present situation where labor laws are being violated and terms of the contract not being followed.

He said the present policy is the only way for the government to stem potential abuses and reduce contract disputes.

Rep. Heinz S. Hofschneider echoed his concern, citing previous cases in which “unscrupulous” businessmen brought in foreign workers only to end up with non-existent jobs once they arrived here.

While acknowledging the level of bureaucracy at DOLI is getting out of control and frustrating for employers, he said guest workers who are not adept to English language could end up being victimized without knowing the terms of their contract in the absence of government review.

“To remove this oversight, it opens up gray opportunities for unscrupulous businesses to take advantage of the situation,” Mr. Hofschneider said during floor deliberation.

House Speaker Benigno R. Fitial, however, noted the problem has been pestering the government since the passage of the Nonresident Workers Act in the last 1980’s and yet policy-makers have failed to come up with solution over the years.

“CNMI employers are constantly complaining about the time-consuming process in approving employment contract,” he explained. “Businesses have been asking for relief.”

Enacting HB 12-275 is a policy decision legislators have to make, said the House leader, since existing laws have “big loopholes” that even prolong the agony facing employers in seeking DOLI’s approval.

Because of the major differences in opinion, the lower house voted to approve the proposal on first reading, allowing further scrutiny of its merits before final round of voting.