Resolving the labor problem in the CNMI

U.S. Public Law 110-229—the 2008 federal law that took away local control over immigration matters in the CNMI and established the temporary Commonwealth worker program—has to be amended if the economy of the CNMI is to avoid another economic recession. The initial five-year phasing-out period allowed for the foreign worker program, also called the CNMI-Only Transitional Worker Program or CW program, was subsequently amended by Congress to provide for a longer (10-year) phasing out period. When that term expires next year, no more nonresident workers could be hired under the CW program.

To “sweeten the pot” for the Commonwealth in 2008, Public Law 110-229 also provided—after 30 years of local self-government—for the CNMI to have a non-voting delegate in Congress, similar to the other U.S. territories. This federal legislation, however, ignored the clearly foreseeable, adverse effect that the complete phasing-out of nonresident workers would have on the economy of the Commonwealth.

The obvious reason why the Democratically-controlled Congress in 2008 decided to take over immigration in the CNMI was its anger and frustration with the Commonwealth government over the uncontrolled entry of nonresident workers into the CNMI, particularly the thousands of garment industry workers from foreign countries. In addition, accusations of “modern-day slavery” taking place in the CNMI were publicized in the national and international media at the start of the 21st century. And the U.S. Congress was embarrassed by such negative publicity and its effect on the reputation of the U.S. as a champion of human rights.

Thus, when the Democratic Party took control of both houses of Congress in 2006, the removal of CNMI control over immigration in the Commonwealth and the imposition of the federal minimum wage law were two key objectives on its agenda. As they say, both matters are now history; both objectives have been accomplished.

So this year, as in the past several years, the leaders of the Commonwealth are once again confronted with the continuing reduction (by 3,000 next year) in the number of CW workers. With the resurgence of economic activity in our tourism industry and the introduction of the casino industry, it is quite clear that the CNMI does not and will not have the number of workers needed by these two industries, not to mention the construction and other ancillary industries.

Under the provisions of Public Law 110-229, CW workers will soon dwindle to zero, at which point there will be no more CW workers. Thereafter, the only recourse for nonresident workers to work in the CNMI is through the H-1 and H-2 visa program, which is limited numerically and is normally a work visa program for highly skilled workers only.

In order to address this basic economic problem—the absence of enough qualified workers—the leaders of the Commonwealth has to first analyze how and why we got into this predicament. Second, our leaders have to come up with a proposed solution that the U.S. Congress would find reasonable and acceptable. Any proposed solution must realistically address the present and future labor needs of the Commonwealth.

Just as important (if not more so), any proposed solution that we come up with must especially address and take into account the concerns of the federal government (especially Congress). We must understand that Congress took away local control over immigration matters because we were not able to implement a sound and controlled entry and exit immigration system.

Congress, on the other hand, must have been aware that the gradual reduction of CW workers over a 10- year period would adversely affect our fragile, insular economy. Geographically isolated in the vast Pacific Ocean, with hardly any local capital, with a scarce land resource, and an extremely limited human resource to service even our tourist industry, we have to convince Congress and the Executive Branch that our only way to economic independence is through the allowance of outside investment and the ability to hire outside workers needed to develop our economy. (This presumes that we have exhausted our available local human resource.)

In formulating a proposed solution that will address the labor needs of the Commonwealth, we must address both our present and future labor requirements. We need to provide real justification(s) for the continuation of the CW program. This requires us to address the problem of overstaying guest workers. It requires us to maintain a line of communication with the federal government with respect to non-immigrant workers. It requires us—before we introduce or allow any new industry in the Commonwealth—to first assess our ability to provide the number and kind of workers for any proposed industry. It is pointless to start new industries in the CNMI, then later regret the fact that we don’t have enough workers to service that industry.

Foreign investors must be educated before setting up shop in the CNMI: that they cannot operate in the CNMI as they do in their country of origin. Investors need to realize that the CNMI cannot be used as a loophole through which illegal migration thrives or through which crimes are committed. We need to find out from the federal government and its relevant agencies, such as the Department of the Interior and the Department of Homeland Security, before any legislation is drafted, what conditions must be imposed in the proposed legislation, before the federal government and the Congress will agree to the continuation of a reasonable and viable CW program for the CNMI.

Only after we have gone through the above process should a proposed legislation then be drafted, favorably by a joint committee or task force composed of representatives from the CNMI government and the federal government.

I could go on and on in terms of what I think is needed to address and resolve the CW program. But I shall stop here. I think the foregoing discussion gives us one idea of how to approach the need to continue the CW program.

As with other critical matters, time is of the essence. We have only until next year to resolve this major economic problem that the CNMI is facing.

Jose S. Dela Cruz is a former justice of the Commonwealth Supreme Court.