Scrap 3-year limit on foreign workers

The Legislature should lift the three-year stay limit imposed on nonresident workers and allow companies to hire them on a two-year contract in an effort to help existing businesses while cutting down redtape on labor processing.

But it should retain the resident worker fair compensation law since it would provide equity to locals who are working in the same category with guest workers, but do not receive benefits such as subsidized housing and transportation provided to their counterparts.

These were among the recommendations by Rota Mayor Benjamin T. Manglona to the Senate Committee on Resources, Economic, Development and Program in line with its review of HB 12-39 or the Omnibus Labor and Business Reform Act.

While expressing support for the measure which he said is necessary at this point of flagging economy, Mr. Manglona urged lawmakers to weigh carefully proposals to lift the hiring ban and employment cap on alien workers on the islands.

“CNMI government can and should reform its laws to meet contemporary conditions. We can ill-afford the old ‘boom time’ policies,” he told the committee during a recent public hearing on the legislation held on Rota.

“They no longer fit a sharply competitive era. Investors no longer fall over themselves to get into the CNMI. We need to attract and support business. If we want recovery and a lasting prosperity we must learn to assist business.”

The bill, one of key priorities by the House leadership under Speaker Benigno R. Fitial, is expected to be amended by the panel chaired by Senate Floor Leader Pete P. Reyes following the three hearing conducted on the three islands.

Business groups, such as the Saipan Chamber of Commerce, the hotel association and the garment manufacturers, have called on lawmakers to hasten passage of the proposal which they said is badly needed to improve the local economy and attract other investors.

But Mr. Manglona, who was a former lieutenant governor in the early 90’s during the start of the boom years in the CNMI, cautioned the Legislature against repealing laws that were put in place as part of labor and immigration reforms.

Cautious

He said that such move, although intended to correct ill-fitting government policies, could draw yet another scrutiny by the federal government and hamper efforts by the Commonwealth to enhance investment climate here.

“Federal criticism sometimes hit the mark. But we respectfully request our lawmakers to hold a steady, more measured course in reform,” the mayor explained. “Keep our policies consistent, not frequently changing with the political winds.”

Instead of outright repeal, he sought “simple reforms” in the Omnibus act, such as the two-year contract for nonresident workers.

“Yearly renewal is very burdensome to business. To keep government revenues at present levels, double the fees for the biennial renewal. In this way, government wouldn’t lose any money and business could concentrate on profits instead of paperwork,” Mr. Manglona said.

Likewise, he favored simple processing at the labor and immigration department in which renewals and applications for nonresident workers will become easier.

He also stressed that a five-day grace period for guest workers without a valid employment contract to leave the Commonwealth is too short and anti-labor.

Noting that the garment manufacturing sector needs government assistance to ensure its viability, the Rota leader said lawmakers must come up with other measures than the proposed lifting on the cap on guest workers employed in factories.

“There are other things that we can do to help business recovery… that don’t run into the controversy we court by tampering with caps and moratorium,” he said.

“This Omnibus reform measure heads in the right direction. It seems, frankly, top heavy with support for a single industry — garment. I do support the garment industry… We should make changes that keep that industry healthy and vibrant,” added Mr. Manglona.