Senate passes omnibus bill

The proposed Omnibus Labor and Business Reform Act finally cleared the Senate yesterday after bringing extensive changes to the House measure following a series of public hearings and meetings held with the private sector and administration officials.

It now heads back to the lower house again for action on several amendments. There was no immediate reaction from the House leadership on the Senate draft. Speaker Benigno R. Fitial, who sponsored the legislation, is off-island.

The Senate Committee on Resources, Economic, Development and Programs submitted its report on the proposal under HB 12-39 during yesterday’s session, highlighting major changes to its provisions.

While the original bill has been watered down to suit the concerns of both the Senate and the executive branch, senators said the new draft is the result of compromise hammered out with the business sector.

Leaders of the Saipan Chamber of Commerce and the Saipan Garment Manufacturers Association (SGMA) welcomed the Senate move, saying their concerns have been addressed. (See related story on Page 5)

This bill responded “positively” to the concerns of the business sector and is “acceptable” to the executive branch, said the REDP chair, Floor Leader Pete P. Reyes, during the session.

Sen. Ramon S. Guerrero, a member of the committee, expressed hope of favorable action from the House, saying efforts to assist the business community in dealing with the current economic crisis can’t be done overnight.

A key legislation of the House under Mr. Fitial’s leadership, the Omnibus is seeking to repeal some of the laws implemented by the government over the past two years which have been described detrimental in wooing investments into the CNMI.

Most of the laws being sought to be abolished, such as the hiring ban and the three-year stay limit imposed on nonresident workers as well as the fair compensation for locals and the garment attrition scheme, were taken out by the Senate.

Instead, they inserted provisions to give flexibility to companies in complying with the government regulations. These are:

– exemptions for Rota and Tinian from the moratorium on issuance of license for new garment factories in a bid to encourage growth of the industry on the two islands;

– other means in meeting the $100,000 security deposit on foreign investment aside from cash bond;

– replacement hire for guest workers who have departed the CNMI or have transferred to another employer on island;

– a 45-day grace period given to a nonresident with notice of termination to find another employment;

– temporary transfer of workers within the garment, hotel and construction industries;

– re-allocation of the quota on the number of guest workers assigned for each garment firm based on its need;

– employment by other garment firm of workers from factories that have shut down provided the total number currently on the island does not exceed the 15,727 cap put in place in March 1999;

– additional 1,000 workers to be provided each to Rota and Tinian for their respective garment industry if approved by local legislative delegation.

The proposal to repeal other laws, such as the three-year stay limit under Public Law 11-69 and the denial of certificate for garment manufacturers found violating labor laws, will be taken up in separate legislation, according to the committee.