Chamber asks DHS for minimal CW-1 cut in FY 2018

Aware that an economy without enough workers could lead to a decline in economic activity, the Saipan Chamber of Commerce has reached out to the Department of Homeland Security to ask for a minimal reduction in the CW-1 cap for fiscal year 2018.

Chamber president Velma Palacios initiated the request in a letter to DHS last June 2017.

The Chamber is made up of 160 private businesses, government agencies, and nonprofit organizations in the CNMI, making it the largest organization on the islands.

“We humbly ask that the [fiscal year] 2018 cap be set at a minimum reduction of one person only, as the case for 2017. Our island needs every available worker. No person willing and able to work remains unable to find employment. Our foreign workforce is keeping our economy alive as we strive prosperity for our people,” Palacios said.

Although the foreign worker cap for fiscal year 2018 has not been set yet, it is required by law to be less than the 12,998 workers allowed in fiscal year 2017.

DHS dictates the number of CW-1 workers required each fiscal year.

As per DHS regulation, they provide the CW-1 cap for any fiscal year and the number will be less than the number for the previous year.

Palacios said the current workforce issue not only affects business ventures but the entire economy of the CNMI.

She added the business community has implemented many programs to reach the goal of utilizing every possible U.S. eligible worker on island and to entice other eligible workers from other geographical locations.

“The current expansion of our economy has made the need for foreign workers still necessary. In fact, the recent U.S. Government Accountability Office report stated that with no CW-1 workers, the CNMI’s gross domestic product would decline by 26 to 62 percent,” Palacios added.

In its response last Aug. 8, DHS, through acting director James W. McCament, said they continue to evaluate the CW-1 cap on a yearly basis to ensure compliance with statutory and regulatory requirements.

According to McCament, they will be consistent in determining the CW-1 cap for the fiscal year 2018.

“As in previous years, DHS will base its decision on a number of factors including the need to reduce the number to zero by the end of the transition period to further maximize the recruitment of U.S. workers, and to facilitate the transition into the U.S. immigration system,” he said.

Last week, H.R. 339 became law, opening up 350 mores slots for fiscal year 2017.

The CNMI is allowed 12,998 CW-1 workers in fiscal year 2017. With the additional 350, the CNMI is now allowed to have up to 13,348.

H.R. 339 is a unique legislation that sets aside 60 CW-1 slots for health-related occupations essential to the Commonwealth Health Center as well as 10 CW-1 slots for Commonwealth Utilities Corp. engineers, leaving a total of 280 slots for the rest of the private sector.

It is not yet clear if the same law will be extended in fiscal year 2018. In the meantime, DHS acknowledges the Chamber’s efforts to implement programs to meet workforce needs and request to impose a minimal reduction for upcoming CW-1 cap.