‘Focus on 902 recommendations’

In terms of finding a long-term solution to the Commonwealth’s current labor dilemma, it would be better for CNMI officials to unite and focus their attention on the recommendations in the Section 902 report, according to Senate President Arnold I. Palacios (R-Saipan).

The report is already with U.S. congressional leaders, submitted to them early this year. The recommendations arose after a series of consultations and meetings between CNMI and federal government panels, led by Gov. Ralph DLG Torres and former Assistant Secretary for Insular Areas Esther Kia’aina.

And Palacios, who was a member of the CNMI panel as the Senate Federal Relations and Independent Agencies Committee chair, hopes that Congress would finally act on it.

“We should focus on the…extension [of the CW-1 program] and the major provisions of [the 902 report],” he said.

Among the 902 report’s recommendation is extending the CNMI-Only Transitional Worker program (CW-1) by 10 more years and increasing the CW-1 cap.

The Commonwealth is expected to again experience labor problems after the CW-1 cap for fiscal year 2018 was breached last week, for the third straight fiscal year.

U.S. Citizenship and Immigration Services announced on May 25 that they have already received enough number of CW-1 petitions—the 12,998 numerical limit—for transitional workers in fiscal year 2018.

Permanent status for long-term guest workers is also one of the recommendations made by both panels. The provision would give those who are eligible to gain lawful permanent resident status with a path to citizenship.

Palacios said a lot of workers under the CW-1 visa have been in the CNMI for 10 years or more and have occupied CW-1 slots. “They have kids. There are also [workers] who have kids that have graduated from college and came back here.”

“It may not be a popular decision to make, but we have the pieces to these puzzle. Why don’t you take this 3,000 [or more] CW-1 slots occupied by long-term 10-year [guest] residents and give them status? It would open up slots on the CW-1 cap and you could still retain the skills here.”

Palacios said that almost the same thing is happening in Japan now, with the Japanese government relaxing their tight policies and bringing in foreign laborers. “There are Filipinos working in duty-free shops, which you can’t see a few years ago. …It is a changing world.”

Sen. Justo S. Quitugua (Ind-Saipan) added that Japan is realizing that their population is growing old. “And they are not having babies, the young generation doesn’t want to have babies.”

“The young generation prefers to work. Both men and women spend 16 hours a day working. They have no time for babies. They are trying to revive their population since they are beginning to experience shortage on labor.”
 
‘Where were the feds?’

Palacios also questioned where the federal government was when the CNMI’s economy was floundering, especially after the garment industry moved to other countries that have cheaper labor costs.

“When the system collapsed, where were the feds to help us recover? …That was scary—a 64-hour payroll period and even CW-1 workers that were legal could not find full-time jobs because stores and other businesses were cutting down hours,” said Palacios.

“We basically hit rock bottom. But we…picked ourselves up with our bootstraps. We have to do something about this. We’re at the tail end of depression. On Sundays, you can’t see many cars on the roads, because a lot of people can’t afford gas.”

Quitugua echoed the same sentiments. “Our people were leaving. They were leaving because life here was bad. They were either going to Guam, Hawaii, and the U.S. mainland.”

“Those that we sent to school don’t want to return because there is no life for them here. It doubled the impact the labor issues against our people, going away to look for better opportunities,” said Quitugua.

USCIS, every year, has to reduce the numerical cap as businesses need to transition their workers to other U.S. eligible work visas. It was cut to 18,000 initially then reduced to 15,000 and to 12,998.

Things began to pick up when the Korean market arrivals started to improve. “The big factor that took us over the hump is the casino. Now, we need the manpower for this economy. Do we have the audacity to think of that? It is in the 902 report.”

Palacios added that Delegate Gregorio Kilili Sablan (Ind-MP) should have introduced a bill in U.S. House of Representatives that includes some of the recommendations made in the 902 report. “Kilili should have introduced a bill that takes the 902 component and put it in the congressional bill for long-term solution.

Old data

Sen. Sixto K. Igisomar (R-Saipan) said the CW-1 dilemma is a federal issue that is flawed. “To be politically correct, the formula used was flawed and the decision was flawed. The decision of federalization, and reduction of manpower and labor is based on past data, without anticipating the growth of [gross domestic product].”

“The CW-1 issue is a soufflé gone bad. Apparently, someone did not cook it right or too many chefs or the cook was listening to someone who only eats without knowing how to whip an egg.”

He added those who are involved in implementing the program from the federal government did not anticipate that the CNMI economy would soon improve.

“They [feds] expected the GDP to remain downwards. The reduction of manpower was based when the CNMI’s economy, back then, was going down. They did not anticipate labor demand to increase and the economy would rebound.”

Igisomar said it is time for the federal government to change its policies. “Now that they have seen a change of formula, they must adjust accordingly. It was based on economic data back then. That data now has changed. It is for the best interest that they must adjust. The variables have changed.”