‘Economy can hire more US workers’

Gov. Ralph DLG Torres, third right, and Delegate Gregorio Kilili C. Sablan (D-MP) join other CNMI officials after debriefing the entire CNMI delegation on what transpired in the Senate Committee on Energy and Natural Resources committee hearing last week in Washington, D.C. (Contributed Photo)

Gov. Ralph DLG Torres told the Senate Committee on Energy and Natural Resources that more United States-eligible workers have been hired by local businesses as the CNMI’s economy continues to improve after years of decline.

Torres was one of five officials that testified in last week’s committee hearing on House Resolution 339 or the CNMI Economic Expansion Act introduced by Delegate Gregorio Kilili C. Sablan (D-MP).

U.S. Department of the Interior-Office of Insular Affairs Acting Assistant Secretary Nikolao Pula, U.S. Government Accountability Office International Affairs and Trade Director David Gootnick, and Island Training Solutions sole proprietor Jim Arenovski joined Torres and Sablan in testifying before the Senate panel.

Senate President Arnold I. Palacios (R-Saipan), House Speaker Rafael S. Demapan (R-Saipan), Strategic Economic Development Council representative Alex Sablan, Marianas Visitors Authority board chair Marian Aldan-Pierce, and Hotel Association of the Northern Mariana Islands president Gloria Cavanagh were also present in the hearing.

Torres said HR 339 is an important legislation that would provide short-term relief to the CNMI’s needs in retaining employees that are critical, especially in the healthcare sector. “The economy of the CNMI today, while not completely rebounded from its years of depression, is showcasing a different reality.”

“Today’s economy has the ability to hire and retain U.S.-eligible workers, to support rapidly increasing wages—both those which have risen by federal law and those that have increased organically through growing labor demands—and to grow its economy in a competitive and globalized market.”

He added that the resurgence of the Commonwealth’s economy had been remarkable and could not be understated despite facing growth constraints coming from a small island nation like the CNMI.

Torres said they have been proud because as the CNMI’s economy grows so is the number of U.S.-eligible workers that have been hired, which increased by almost 19 percent since a 15-year low in 2012.

“The CNMI today has more domestic workers in the labor force than any other time since 2004 and, in line with the goals of Public Law 110-229, today the CNMI can boast the highest ratio of domestic to foreign workers since the beginning of our modern economy in 1990,” said Torres.

He added that there’s still much work to be done. “There are still those in our economy without a job, and if I could place each of these individuals into a vacant position I would, but the realities of the situation on the ground are not that simple.”

“Education, skill sets, certifications, health, and drug abuse still present barriers in much the same way it does throughout the U.S. national force.”

Torres said that is why he would continue to make sure every U.S. eligible worker in the CNMI gets hired. “In looking at the best examples from across our nation, I see one solution to increase U.S. citizen employment that has proven itself time and time again to be successful—grow the economy.”

The CNMI economy’s potential to further grow, however, is limited. “The truth is the CNMI does not have the enough workers in all of the various fields and specialties to sustain the economic growth we need to avoid falling back into the sever economic depression we witnessed only a few short years ago.”

“What filled the unmet demand for workers in the wide array of occupations in the CNMI and has allowed the economy to grow, and to increase jobs for U.S.-eligible workers has been the Commonwealth-Only Transitional Worker (CW1) program.”

Components of HR 339

HR 339, if it becomes a law, would increase the numerical limit of CW permits issued by U.S. Citizenship and Immigration Services from 12,998 to 15,000 for FY 2017. The cap was reached twice early in FY 2016 and 2017.

It would also increase the vocational education fee that employers pay for each CW1 permit applied from $150 to $200. The money collected is used to fund the training of the local workforce that would replace foreign laborers.

HR 339 also aims to permanently prohibit CW1 permits issued to construction workers, except for those that had already been issued before Oct. 1, 2015.

The bill, introduced by Delegate Sablan as HR 5888 in the 114th U.S. Congress, also wanted construction firms to use other U.S. work visas for their laborers.

Senators’ reactions

Committee chair Sen. Lisa Murkowski (R-Alaska) and ranking member Sen. Maria Cantwell (D-Washington) expressed their views before allowing the witnesses to give their respective testimonies.

Murkowski said it was great news to see the economic growth and investment interest the CNMI as experienced after the 2008 global economic crisis. “It is great to see this economy rebound. And I think we have had enough discussion in this committee to recognize there have been some very tough years, years where the economy has struggled greatly.”

She, however, said the CNMI would have not been in this situation if the transition program was taken seriously when the Consolidated Natural Resources Act was enacted in 2008.

“We have not seen the progress we had hoped in moving away from foreign labor during the first five years, which led Congress to enact the hard 2019 sunset date for the transition program.”

Murkowski added it is not clear how sustainable the investments of the resort and casino projects are and the capacity of ensuring the legality of activity. “The recent arrest of construction company representatives for employing and harboring Chinese workers who entered the CNMI on parolee/tourist visas is probably the most explicit and current example of these concerns.”

“These are all questions that we need a better understanding as we look at this legislation [HR 339], which would provide temporary relief to roughly 2,000 foreign workers in the CNMI, and then more importantly, as we look at the CNMI’s future post going forward.”

Cantwell, on the other hand, mentioned the CNMI’s past issues involving labor abuses and human trafficking in the garment industry where a hearing was also conducted by then committee chair Sen. Frank Murkowski (R-Alaska), who is the father of the current head.

She added that the recent events of workers’ protests, and raids and arrests made by the Federal Bureau of Investigation are similar to those saw in the 1990s. “Today we are hearing again from workers who say they are forced to work 80 hours per week.”

“Owed back wages, have been exposed to harsh and physical working conditions, and are being kept in deplorable conditions. And over the past month, construction workers have protested repeatedly to demand reform.”

Cantwell said the federal government has the duty to ensure all fundamental rights of every individual in the CNMI are protected being one of the territories of the U.S. “Too many people have been hurt and have lost their lives, when Congress had refused to step in and impose the basic immigration and labor standards.”

“Foreign and domestic workers alike are being exploited by their employers who care only for their financial gain. And all of this is happening as Sen. Frank Murkowski said years ago, ‘under a U.S. flag.’”

She said it is their duty being members of Congress, to step in. “Do what is necessary to make sure that our American values are there while providing the Mariana Islands with the tools of economic success.”

“There is still much work to be done. We take seriously the concerns of the Northern Mariana Islands. We will not return to the 1990s and the 2000s.”

Other statements

Pula said the Trump administration is fully supporting the intent of HR 339 even if it is only providing temporary relief for some employees that would be affected by the CW1 numerical limit in the current fiscal year.

“The administration believes that elements of both HR 5888 and HR 339 could be combined to provide a more viable long-term labor program. We look forward with the bill sponsor and this Committee to identify the provisions that will address the CNMI’s labor needs and benefit the overall CNMI economy.”

He said a prompt passage of HR 339, in the absence of a long-term solution, would somehow prevent a health emergency. “The CNMI is facing repatriation of majority of its nurses in June, July, and September; these 125 CW visa holders work on all three populated islands of Saipan, Tinian, and Rota.”

“We are concerned that without legislative relief, many hospital functions will have to be terminated, creating a public health emergency. A similar concern has been raised for employees of the Commonwealth Utilities Corp.”

Arenovski, for his part, has been hiring and training local workers for his own business, and recently certifying others so they could find jobs in other companies. He is operating Island Training Solutions, which is the regional licensee for the American Hotel and Lodging Educational Institute that offers a globally recognized hospitality curriculum.

He shared various success stories of individuals that he had helped through the years, U.S.-eligible workers hired by companies therefore increasing the number of the domestic labor force.

Arenovski said Congress would miss the opportunity in helping the CNMI by not passing HR 339. “The point I want to make is that with a limited pool of unemployed people, each person we train and help to get a job is going to be a story. We have to encourage. We have to build confidence and help people up again when the fall. And it all takes time.”

“But I think we are making good progress and HR 339, by putting more training funds into the system, will help that progress or maybe speed it along. Our [delegate] and governor have opened opportunities for both businesses and local U.S. workers. They both know the importance of getting the labor situation in the CNMI right.”