Business group backs 2-year job contract for nonresidents

Businessmen and employers will be relieved from administrative and technical problems if thousands of non-resident workers will be given a two-year renewable job contract.

In fact, it will be more efficient and less expensive for business operators if the proposal will be given weight by members of the CNMI Legislature, Saipan Garment Manufactures Association Executive Director Richard Pierce said yesterday.

Mr. Pierce threw his support to Rota Mayor Benjamin T. Manglona’s proposal to refine existing policies in regards to employment contracts of nonresident workers.

The proposal is aimed at creating a business-friendly environment in the Northern Marianas by cutting down on paper works without jeopardizing potential revenues.

The executive director said on the surface, SGMA will support the move especially if it will be less burdensome, more efficient and less expensive for businessmen in the CNMI.

“As long as the integrity of the system remains intact, as long as they are renewable and temporary contracts, we will support that,” said Mr. Pierce in an interview.

Should the proposal be entertained by the Legislature, the recommendations recently made by the Economic Development Office to People’s Republic of China will benefit more than 10,000 Chinese workers in the Commonwealth.

The agency earlier suggested to PROC that Chinese workers coming to Saipan be given a passport with two to three years validity.

This way, Mr. Pierce explained, chances of abuse and expenses on the part of the workers will be lesser.

Reports disclosed that some Chinese workers often fall victims to people engaged in passport processing especially during renewal period. On top of the original $60 passport renewal fee, they were made to pay additional charges for the processing.

“We recently found out that there are people who are taking advantage of them and charge them with something else,” the executive director said.

He pointed out that the two-year job contract proposal along with the recommendations for two to three year valid passport, Chinese workers will be spared from abuse and insurmountable expenses.

“When workers are not available locally and we have to hire from the outside and they can work on the average of two to three years, it will be less expensive for businessmen to bring in people to work here,” he pointed out.

But the SGMA executive director said the Commonwealth government should carefully look into the proposal and carefully map out the policies to prevent problems from arising in the future.

The proposal came in following recommendations of the Rota mayor to improve the current business climate in the CNMI by eliminating some laws which will entice local and foreign investors.

Mr. Manglona in a written testimony on the proposed legislative measure seeking to reform existing government regulations, said if the government is bent on creating a investment-friendly environment, the government should begin with implementing an amended policy on the employment contracts of thousands of nonresident workers.

The mayor also offered suggestions that would calm fears of possible decline in government revenues should the annual renewal of nonresident workers’ employment contract is eliminated and replaced with a two-year coverage.

Mr. Manglona added that the CNMI government should start allowing declarations in place of notarization on the labor papers, adding that this simple reform would help business in great and significant ways.

He pointed out that policies and regulations should be crafted in a way that these respond to the needs of the business community, instead of them being implemented to burden the islands’ already ailing industries.

The mayor believes there is a need to eliminate some laws to make it easier and more efficient to do business in the Northern Marianas, thereby, enticing more local and foreign investments. “I’m afraid that many of our own policies are hurting economic recovery.”

The Department of Commerce earlier called for an expedited legislative action on the proposed changes in the existing foreign investment law in order to clear the road for a Northern Marianas business climate that is conducive to growth and progress. (EGA)