Monday, December 29, 2008

Local
Monday, December 29, 2008

Fewer hired via Employment Services

By Kristi Eaton
Reporter

File photo shows Labor Division director Barry Hirshbein and a Labor Department employee demonstrating the new processing equipment and software implemented at the department. (Saipan Tribune) Despite the Department of Labor creating a new website and adding new processing equipment and software in an effort to make jobs searches and registration easier for employees and employers, Employment Services is on par to place only a fraction of the numbers of U.S. citizens in jobs compared to past years.

As of Sept. 30 this year, 1,389 citizens had registered with Employment Services with 115, or 8 percent, hired. Since 2004, at least 20 percent of citizens registered with the service were hired each year.

The numbers are part of the Department of Labor's Deputy Secretary Cinta Kaipat's declaration supporting Gov. Benigno Fitial's federalization lawsuit against the U.S. government.

Kaipat notes that, “others who registered found employment on their own and still others emigrated to Guam, Hawaii, or the mainland U.S. and found jobs there.”

According to the declaration, Employment Services conducts an assessment of skills after a U.S. citizen registers with the service. When job openings occur, Employment Services refers the person with the appropriate skills. The employer who received the referral must hire the person or explain why the person is not qualified for the job or was not hired.

Kaipat, in the declaration, takes issue with reported unemployment rates for the Commonwealth, particularly among residents. She cites the estimate of 14 percent total unemployment among the Commonwealth and 20 percent unemployment among U.S. citizens in the Chamorro and Carolinian communities aged 18 to 65 years.

“From my knowledge of the community, my experience working on labor and employment matters, and the data gathered by the Labor Department, I believe these estimates are wrong and far too high,” she said, adding that the Labor Department normally has about 600 people registered at any given time in addition to an estimated 400 to 500 U.S. citizens, permanent residents and Freely Associated States citizens looking for work on their own. With these numbers, she estimates the unemployment rate at about 7.7 percent.

Kaipat said she believes there is cultural bias in the way the U.S. collects unemployment data in the CNMI. She lists five reasons: surveys are done primarily in English, with Spanish the only alternative; and foreign workers, who conduct the surveys because they can be paid cheaper thus making the surveys cheaper overall, do not speak English very well or clearly and “their accents may make their spoken English difficult for local people to understand.”

Also, Kaipat said, local people are under the impression the surveys require a “yes” answer to the question about actively looking for work or their eligibility for food stamps will be revoked.

Fourth, some people counted as unemployed are in the process of moving to Guam, Hawaii or the U.S. mainland for work. And lastly, employment surveys disregard the traditional employment within the extended family structure that is a full time job itself, she said.

In the declaration, Kaipat shares details of the Employment Services website that was created in March, including the figure that since Jan. 1 through Sept. 30, 6,886 jobs were posted on the site.

In November, the Labor Department increased its fees for business employers from $250 to $300 to help fund the new site and equipment that totaled $350,000.

Friday, December 5, 2008

Saturday, December 06, 2008
Local
Saturday, December 06, 2008

'Labor does excellent job in detecting sponsorships'

By Ferdie de la Torre
Reporter

The Department of Labor has been doing an excellent job in detecting sponsorship scams, according to Labor Deputy Secretary Cinta Kaipat.

In her another interim progress report on the implementation of the controversial Public Law 15-108 (new labor reform law), Kaipat told the Legislature that Labor Director Barry Hirsbein is doing “an outstanding job” of finding sham sponsorships in the employers' applications that are submitted to Labor.

Kaipat said the director and his staff review 4,000 to 5,000 applications a month, and they identify about 300 to 400 questionable applications in an average quarter.

“Those applications are turned down, and some appealed,” she said.

The deputy secretary said they have also succeeded in reducing the number of alien workers in Temporary Work Authorization status.

Kaipat said they have done this by cleaning up all the pending cases from 2007 and prior years, and by instituting new rules for cases pending elsewhere.

“When workers file cases in federal or Commonwealth courts, the Labor Department asks for a court order if the worker is to be permitted to remain in the Commonwealth while out of status,” she said.

Kaipat said they allow alien workers who have cases with the Equal Employment Opportunity Commission, National Labor Review Board, and U.S. Labor to obtain TWAs without any affirmative action from the adjudicating agency, but that they are considering changing that policy.

“The EEOC alone has more than 100 pending cases from the CNMI that were filed in 2006 and prior years and they have no estimate when they might reach these cases,” she pointed out.

Monday, October 27, 2008

Monday, October 27, 2008
Local
Monday, October 27, 2008

Garment Oversight Board finally closing Friday
Uncashed settlement checks to go to a Trust Fund
By Ferdie de la Torre
Reporter

The Garment Oversight Board is closing this Friday, Oct. 31, and all the money coming from the class lawsuit settlement checks that the garment workers failed to cash will go to a Garment Workers Trust Fund, according to GOB chairman Timothy Bellas.

Bellas told Saipan Tribune that Friday is GOB's closing date therefore it will be the last day that the board will do anything with any of the settlement checks.

He said the proposal, however, is that they're going to continue the financial aspect until Dec. 31, 2008 to allow any of the checks that are still outstanding to be cleared.

Bellas said the uncashed money will then be transferred to a Garment Workers Trust Fund for a year and then after that the money will be given to a charity.

“We've tried extensively by asking the court to extend the term of GOB three times in order to get much of these money into the hands of the garment workers as we can,” he said.

The former judge said the GOB can only can go by the addresses of the workers that were given to them.

“We've had a lot of situation where the workers might be here but the addresses they gave us were back in China, or Philippines, Bangladesh,” he said.

Bellas said they sent the checks for the addresses that they have so the relatives of the workers sent the checks back to the workers here in the CNMI.

“So they come in and they say 'oh here's my check' and it's more than 60 days. So we've been re-issuing checks,” he said.

Bellas said every time GOB's term gets extended, its operation expenses continue.

“We're sort of using the money for operating expenses. And so we want to go ahead and use it for a good purpose of giving it to the workers or giving it to charity,” he added.

GOB was set up pursuant to the $20-million settlement agreement in the class action against CNMI's garment industry. It's purpose was to oversee the monitoring program of the garment industry.

Before the remaining settlement money was transferred to GOB last year, a company that was tasked to distribute the funds to some current and former garment workers informed the U.S. District Court for the NMI that it successfully mailed out almost 29,800 checks to individuals located in 17 countries.

The company said the total cash distribution represented by the checks is $2.3 million out of an initial net fund of $4 million.

In July 2008, GOB claimed it has sent 11,353 new checks and would be sending 1,031 more checks to some current and former garment workers.

The 12,384 checks are worth $1,599.495, GOB then reported.

On July 21, 2008, the federal court granted GOB's request for final extension of its term (Oct. 31, 2008) in order for the board account the last $1.6 million in checks.
Monday, October 27, 2008

LIIDS transferred to Labor

By Agnes E. Donato
Reporter

The Department of Labor will be responsible for the Commonwealth's labor database beginning Nov. 1, 2008, Gov. Benigno R. Fitial ordered recently.

Fitial, in an Oct. 17 executive order, transferred the CNMI's labor and immigration identification and documentation system from the Division of Immigration to the Labor Department. More commonly known as LIIDS section, the agency in charge of keeping track of guest workers in the CNMI will now be called the Employment Data Section.

Under the governor's order, the EDS will also maintain the border management system for the Division of Immigration for as long as the CNMI government is in control of local immigration functions. The border management system is an automated program that generates a record of all entries to and exits from the Commonwealth.

The governor said the transfer is done in the interest of efficient administration. He noted that the Labor Department recently upgraded its automated processing system and completed its interactive website. The new system is tightly integrated with the data collection and processing currently done by LIIDS.

“This is just internal reorganization effort. The governor believes it is more appropriate to put Labor in charge of the database, given its duties and responsibilities with respect to the foreign workers,” said press secretary Charles P. Reyes Jr.

According to the executive order, all of LIIDS' equipment and data files will be transferred to the Employment Data Section. The supervisor of the LIIDS section will remain in charge of the new agency. All LIIDS personnel who can legally transfer to the Labor Department will also remain employed in their current positions.

The executive order also calls for the transfer of the LIIDS' budget allocation to the new section. However, it says the governor reserves the authority to make personnel-related decisions.

The U.S. federal government is required by law to take over the CNMI's immigration system on June 1, 2009.

Saturday, October 18, 2008

Sunday, October 19, 2008

Labor completes case backlog project

Lawyer Deanne Siemer, center, gestures during a forum on the new labor law at Multi-Purpose Center in Susupe in this August file photo. Also in picture are Labor director Barry Hirshbein, right and Labor Deputy Secretary Cinta Kaipat. (Jacqueline Hernandez) The Department of Labor announced Thursday that it has completed a 24-month project to clean up all pending labor cases and agency cases from the years 1997 through 2007.

"We completed the adjudication and closure of 4,968 cases," Deputy Secretary Jacinta M. Kaipat said. "We started this project in October 2006 and we finished at the end of September 2008, just as we said we would."

The project covered labor cases in which individuals bring complaints to the Labor Department, usually about unpaid wages or overtime, and also agency cases in which the department itself brings a case against an employer, usually about companywide practices.

Because the department has very limited manpower and was swamped with cases, it could not make much progress with the backlog in 2006.

"We recruited Deanne Siemer to help us in October 2006. She is a very experienced trial lawyer and has served as a judge and mediator in many complex cases in the United States. We asked her whether we could conceivably clean up all the cases that had built up over the years," Kaipat said. "Deanne told us this could be done with a crew of experienced, trained, temporary paralegals, so we authorized her to recruit those people to help. Ultimately, she recruited four people, all of whom are locals," Kaipat said.

"Deanne contributed her time without any pay or per diem of any kind, and we paid the paralegals at the U.S. minimum wage or more, depending on their level of experience. Each of the paralegals had their own business, so they worked on a temporary basis as independent contractors," Kaipat explained. "We are very grateful to Sarah Blalock, Josephine Kapileo, Khris Dela Paz, and Tara Aldan who were tremendously efficient."

The department reported to the Secretary of Finance that it spent $7.25 per case for the entire handling from start to finish of each of the 4,968 cases by the paralegal team. It also spent $1.90 per case for advertising the notices of hearing, the issuance of orders, and the closure of cases so that each party would have adequate published notice of the status of each case.

"We spent a total of $36,012 on the temporary paralegal services for all these cases, and we spent a total of $9,450 for advertising and supplies," Kaipat reported. "This was a very cost-effective project. We finished the job on time and within budget."

"In order to complete this project on time, Deanne advanced her own funds to pay the paralegals on a current basis, so they would not have to wait for the Commonwealth’s procurement process to grind to a conclusion on their invoices," Kaipat said. "They are small businesses, and they need to be paid promptly. Deanne then invoiced the government for the amounts she had advanced."

The department reported that the Commonwealth has now paid Siemer’s invoices for the amounts she advanced to the paralegals and for advertising, so the project is completed.

The department has nine remaining cases from the year 2007 to be heard.

"These are mostly cases where hearings had to be rescheduled because of lawyers’ conflicts with other hearings or obligations. They are all on the Hearing Office calendar to be completed by the end of November," Kaipat said.

The department also has six opinions remaining to be issued from cases filed in 2007 and prior years that have already been heard.

"We expect to have all these opinions issued by the end of October," Kaipat said. "We are almost completely current, dealing now with mostly 2008 cases. The processing of the 2008 cases is going very well." (Department of Labor)

Friday, October 3, 2008

Saturday, October 04, 2008

Labor proposes amendments to employment rules, regulations

By Ferdie de la Torre
Reporter

The Department of Labor is seeking public comments to its proposed amendments to current employment rules and regulations.

Labor filed the proposed rules and regulations to introduce changes to the current rules and regulations before the Commonwealth Registrar's Office.

According to Labor Secretary Gil M. San Nicolas, the proposed revisions are intended to incorporate emergency regulations for the implementation of the federalization cap and the exclusion of unskilled workers.

In Labor's public notice, San Nicolas said the proposed revisions are also to renumber the regulations to conform with the numbering system adopted for the NMI Administrative Code.

The other goal, he said, is to incorporate new practices brought about by the implementation of the automated processing system and interactive website that are now integral parts of Labor.

Labor says the proposed rules and regulations are promulgated due to the following reasons:

- To implement the changes that have arisen because Labor has changed its procedures as it brought its new automated processing online and covered certain operations to its new interactive website.

- In response to requests that certain revisions should be made from participants in the community meetings that Labor convened to discuss the first six months of operation under the new labor law.

Anyone who wishes to provide comments to the proposed rules and regulations may send their comments to Labor Deputy Secretary Cinta M. Kaipat at DepSec2@gmail.com with the subject line “New ERAR”.

Comments are due within 30 days from Sept. 25, 2008, which is the date of publication of the notice.

Wednesday, September 10, 2008

Kaipat says dialogues continue on new labor regs
Thursday, 11 September 2008 00:00 By Junhan B. Todeno - Variety News Staff
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DEPUTY Labor Secretary Cinta Kaipat says she finds some of the implementating regulations for the new labor law, P.L. 15-108, to be working well while others need to be improved.

Kaipat said the concerns raised during the recently held dialogues were “valid” and “well articulated.”

The Department of Labor, she added, will come up with a “compromise” and make the necessary changes to improve the law’s implementing regulations and make them “more workable” especially for the guest workers and their employers.

“We would improve the law to the best that we can for the betterment of the community,” Kaipat told Variety, adding that the dialogues with the different sectors of the community will continue.

Initially, she said, they collected “good” feedback from the community members who are directly affected by the law.

During the two scheduled dialogues last week, the department met with members of the Saipan Chamber of Commerce, lawyers representing guest workers, the federal labor ombudsman and representatives of various organizations.

Kaipat said they have a “very fruitful meeting” with the participants, some of whom were concerned about the 30-day transfer rule that allows displaced guest workers to seek new employment.

Other issues raised include the 20 percent requirement for local employment and the immigration status of spouses of Freely Associated States citizens.

Guest workers, Kaipat said, said the 30-day period is too short considering the lengthy process of registering with the Division of Employment Services and the evaluation of the transfer applications.

Under the Nonresident Workers Act and its implementating regulations, “complainants are granted transfer if they are found to be less at fault than their employers with respect to the issue that gave rise to the filing of the complaint.”

But if a complainant fails to have an employer intent form filed within the 30-day period, he or she will be required to depart from the CNMI at the expense of his or her latest employer.

Representatives of guest workers asked the department to “compromise” on the 30-day period, Kaipat said, adding that they have yet to gather all the suggestions and recommendations on how to improve P.L. 15-108.

“Our goal is to listen and see what ideas they will have to suggest ways that we can improve the regulations,” she said.

There’s no scheduled dialogue this week but the department will continue to gather comments so it can evaluate to determine what initiatives are workable before Labor drafts a final report and submit it to the Legislature, Kaipat said.

“I don’t want P.L. 15-108 to become like its predecessors which were amended piece meal, left and right, to the point where loopholes were created because different components did not fit together,” she said. “What we would do is to give it flexibility to make it better serve the needs of the community.”

Sunday, September 7, 2008

Monday, September 08, 2008


Labor: $4.4M yearly in lost income under federalization


By Agnes E. Donato
Reporter
The Department of Labor says the Commonwealth will lose about $4.4 million a year once the federal government takes over the local labor system.

Cinta M. Kaipat, deputy secretary of labor, said the department projects that it can generate about $6.1 million in revenues in the 2009 fiscal year and in each subsequent year. Factoring in its annual budget of $1.7 million, the Labor Department would bring in a net $4.4 million, or an average of $350,000 to $400,000 every month to government coffers.

“If federal officials are allowed to take over our labor functions, PL 110-229 is very specific; we will lose all labor revenues,” Kaipat said in a letter to the Legislature. “So come June 1, 2009, the Commonwealth will be short some $400,000 every month in its budget.”

But some lawmakers are not convinced by the department's claim.

Rep. Diego T. Benavente, chairman of the House Committee on Federal and Foreign Relations, said the “federalization” of labor and immigration will save the government some money as well.

“There will be some offsetting of what money we'll lose with what we will save from not having to deal with the foreign workers,” said Benavente, whose committee is drafting a legislative report on the administration's plan to sue the U.S. government over the new immigration law.

Rep. Tina Sablan, a supporter of federalization, echoed Benavente's statement and urged the Labor Department to provide lawmakers with a detailed computation of potential savings from federalization.

“Until we get a more balanced picture of what the impact will, I will consider this claim as nothing more than propaganda designed to get us to support the lawsuit,” she said.

In her letter, Kaipat said the Labor Department is able to generate money faster now more than ever. The new automated processing system allows the department to collect fees faster. Fines are being collected from the old labor cases that have been resolved recently. And a more efficient “barred list” process ensures that employers who owe fines do not get services from the Labor Department until those fines are paid.

At the same time, Kaipat said, Labor has taken steps to streamline its operations. A new website has been installed to cut costs. Personnel are being cross-trained so that every staff member can do at least two jobs.

Kaipat said all the revenue generated by the Labor Department will be lost once federalization goes into effect. “There will be no negotiating about this loss of revenue. It has been commanded by Congress,” she said.

Unlike in Guam or the U.S. Virgin Islands, federally collected fees will not be turned over the Commonwealth government, she added.
Sunday, September 07, 2008

'950 alien workers unaccounted for'

By Ferdie de la Torre
Reporter

There are about 950 alien workers in the CNMI who could not be accounted for and are therefore considered overstayers, according to a CNMI Labor Department official.

Deanne Siemer, volunteer consultant and Labor administrative hearing officer, said these 950 people came to the CNMI legally and are still here, but they do not have current status to remain and have been published as overstayers.

“If these people are picked up by Immigration, they will be deported,” she said.

Siemer said the number is an estimate until Labor gets all the annual reviews done by Oct. 30, 2008.

She disclosed the number of alleged overstayers during Thursday's meeting with officials and representatives of the Saipan Chamber of Commerce and Hotel Association of the Northern Mariana Islands at Labor's conference room.

The meeting, which is one of a series, was held to obtain input from the community on what amendments Labor can propose to the controversial Public Law 15-108, or the new reform labor law.

“A lot of the people that folks see in what they think is the underground economy are people who actually have jobs and are working two jobs, three jobs and the second or third jobs maybe illegal. That is, they have no permit for that, they may not have registered. The employer is entirely illegal. But that person actually does have a job,” said Siemer.

She said there have been estimates over the years that there are 8,000 overstayers in the CNMI, but none of these are hard facts.

Labor officials explained in the meeting that the computer systems at Labor back in the '90s were very different from the one Labor is using now.

Siemer said it is possible that there are more people out there who came into the Commonwealth during the 1980s or 1990s and never worked in 2000 and thereafter.

“If someone has been illegal for 10 years or more, it will take more time to find them,” she said.

Federal immigration authorities, Siemer said, will clearly have the funds that would enable them to go back to the 1980s and 1990s records and find these people.

“Anyone who has been illegal that long is very likely to be deported by the federal authorities as soon as they are found. The Commonwealth estimates that there are relatively few people in this class,” she said.

Gov. Benigno R. Fitial had asked Labor and the Immigration Division to determine how many overstayers were, in fact, in the CNMI.

To determine the number of overstayers, Labor reviews all its actions during each quarter and determines who should have left the Commonwealth.

These are people whose labor cases are finished, whose contracts have terminated, whose appeals have been denied and so on.

A Labor employee then consults the Border Management System and finds out who did leave. The remaining people are put on the quarterly overstayer list.

The overstayer list is published in the newspapers for two consecutive weeks, and people are given the opportunity to come in to Labor and correct the records.

Labor Deputy Secretary Cinta Kaipat certifies the corrected quarterly list and sends it to the Immigration Division.

Wednesday, September 3, 2008

Differences in Labor Policies

Policy differences with Rep. Sablan

Dear Representative Sablan:

You and I have vastly different positions with respect to labor policies in the Commonwealth. I spent over five years at the Labor Department as a hearing officer. My experience in handling cases involving both local and foreign employers and foreign workers persuaded me that our guest worker system was being manipulated by employers and employees in ways that were unfair to our U.S. citizen workers and were bringing discredit to the Commonwealth. I spent two years as a member of the 15th Legislature getting a comprehensive labor reform bill passed, which was signed into law as P.L. 15-108 last November. I have spent the last six months as Deputy Secretary of Labor implementing this law and working to make our system better. I strongly disagree with the labor policies you advocate, and I have said so publicly. It is regrettable that you have now chosen to attack me personally because of our differences over labor policies.

I make the following observations so we are clear about what those differences are:

OVERSTAYERS: You believe that foreign workers who have not been renewed by the employer who brought them to the Commonwealth, and who cannot find an employer to whom to transfer, should be allowed to remain in the Commonwealth as unemployed persons. I disagree with your position. Since 1983, our guest worker laws have required that aliens who come to the Commonwealth remain productively employed. There are good policy reasons for this requirement. Unemployed foreign workers require social services that create a financial burden on the Commonwealth; they often work without permits and undermine legitimate businesses that comply with the law and hire U.S. citizen workers. For that reason, the Labor Department publishes Overstayer Lists so that persons who are affected may come forward to correct the record or leave the Commonwealth voluntarily so as to preserve their right to re-enter.

NO-JOB SPONSORSHIPS: You believe that if a foreign worker pays to make an arrangement under which someone sponsors that worker by saying they are “employed”-although the sponsor has no real job for that worker and that worker does no real work for that sponsor-that the worker should be able to remain in the Commonwealth. I disagree with your position. “No-job sponsorships” are a fraud on the Commonwealth. In 2008 alone, the Director of Labor has denied about 1,000 applications, many for “no-job sponsorships.” Under a typical “no-job sponsorship” arrangement, the foreign worker pays the Labor Department fees, pays the bonding fee (for a bond that may not exist), and pays phantom taxes on wages not paid so that the Department of Finance will not crack down on the employer. The foreign worker then goes into the underground economy and finds his or her own job, or simply “retires” to live with a spouse or partner who works. The people who engage in “no-job sponsorships” on both the employer side and the worker side have evaded Commonwealth law, made false statements to the department, and sometimes testified falsely under oath. The Commonwealth's purpose in permitting guest workers to enter to work is to support the economy. People who engage in “no-job sponsorships” undermine that purpose; they do not support the economy. They simply seek the privilege of residence in the Commonwealth for which many, if not most, cannot qualify under visa rules.

TRANSFERS: You believe that there should be a “free market” in which there is no approval required when a foreign worker transfers from one job to another, so that a foreign worker can basically set up a new business and work for himself or herself if they want to do that. I disagree with your position. Under P.L. 15-108, all transfers must be approved by a hearing officer. The requirement of a careful but speedy review is very important in assuring that each foreign worker has a legitimate job with an employer who does not have past problems that might lead to taking advantage of the worker. Since the implementation of P.L. 15-108 in January 2008, this review process has resulted in numerous transfers being denied after a hearing on the ground that the proposed transfer did not comply with Commonwealth law. These transfer denials may involve illegal conduct on the part of the employer, the worker, or both. Every worker whose transfer is affected by reasons having to do with an ineligible employer is given another opportunity to find a suitable employer and transfer. There are good policy reasons for the requirement of administrative review of transfers. Transfers to employers who have previously exploited workers or who have no financial means to pay the worker is likely to lead to more labor complaints in the future, which require the department's resources to adjudicate.

PERMANENT RESIDENCE REGARDLESS OF WORK STATUS: You believe that foreign workers who have been in the Commonwealth for more than five years, regardless of whether they have worked during that time, should have permanent residence in the Commonwealth. You even introduced a bill to try to achieve such objective. I disagree with your position, and the Labor Department strongly opposed your bill. I firmly believe that the House's 15-2 decision to adopt the Committee Report to shelve your bill last Friday, August 22, 2008, is the right decision.

FOREIGN WORKERS WITH U.S. CITIZEN CHILDREN: You believe that any foreign worker who is given permission to enter the Commonwealth to work and has a child while in the Commonwealth should be given a free pass to remain in the Commonwealth forever. I disagree with your position. The U.S. does not allow this, nor does any other country. Why, then, should the Commonwealth allow this? The citizenship of children does not affect the work status of their parents.

FEDERALIZATION: You believe the federal government will solve our problems in the guest worker area. I disagree with your position. Our experience with the federal government during Trust Territory times-not all that long ago-was very disappointing. The U.S. has a very substantial guest worker problem of its own, which it has not yet solved. Immigration reform is stalled in the U.S. There is no reason to believe that federal officials are more capable than Commonwealth officials with respect to running the labor system in the Commonwealth. In my view, federalization will hurt foreign workers. They will be deported without regard to their contribution to the Commonwealth, and they cannot qualify for U.S. visas. You know that the availability of H visas will expire quite quickly by 2014 and then the Commonwealth will be competing against the entire continental U.S. for these visas. That does not hold out the prospect for more than a very few foreign workers to remain in the Commonwealth. The federal officials from DHS who visited recently expressed little likelihood that the U.S. would even consider processing H visas for the Commonwealth's foreign workers now, so maximum uncertainty lies ahead.

ALLEGATION OF BIAS: I take strong exception to your allegation that I am biased against foreign national workers. While I refuse to dignify your allegation by giving it more attention than it deserves, I will say that while I worked as a hearing officer, Federal Ombudsman Jim Benedetto sent Dr. Jack Tenorio, Secretary of Labor at the time, a letter commending me for my “proactive” work in assisting foreign national workers. I had a good professional relationship with employees of the Federal Ombudsman's Office. Moreover, I received several Appreciation Certificates from the Philippine Consulate in recognition of the assistance I rendered to the foreign national workers from the Philippines over the years. Foreign worker advocates routinely came to me for assistance in interacting with other units in the Labor Department and Division of Immigration whenever they encountered difficulties that they could not easily resolve. My record speaks for itself. Just because I favor strong enforcement of our Labor laws and don't agree with your views on Labor policies does not mean that I am biased against foreign national workers-no matter how often you or the special-interest groups you represent repeat this allegation.

COMMUNICATIONS WITH THE LABOR DEPARTMENT: I have been very open with members of the Legislature about the actions taken and policies developed by the Department of Labor. I have sent you (and other legislators) five Interim Reports on the implementation of P.L. 15-108 since re-joining the Labor Department in February 2008. I also invited members of your committee to visit the department. When you visited the Labor Department just recently, I asked you if you had any questions or concerns. You raised several issues, but none of the matters you set out in your letter except your misperception that there are termites in our landlord's attic. I have also made myself available to members of the Legislature. You have never raised with me any of the concerns expressed in your letter. I first learned of your letter to the Secretary when I read about it in the newspaper Saturday morning. It would appear that you released your letter to the press first, and then sent it to the department. All of this hinders a free flow of information between the department and the Legislature.

I hope that we can set politics aside and work together to make sure that U.S. citizen workers, Commonwealth employers, and foreign national workers are all treated fairly. The people of the Commonwealth and those who call the CNMI “home” deserve nothing less.

Cinta M. Kaipat
Deputy Secretary
CNMI Department of Labor

Thursday, July 3, 2008

Illegal Recruitment Victims Return Home

3 victims of illegal recruitment to return to Philippines
Friday, 04 July 2008 00:00 By Junhan B. Todeno - Variety News Staff
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THREE of the five Filipino guest worker who came here as “tourists” will return to the Philippines on Saturday after the Department of Labor decided not to renew their temporary work authorization.

Former Speaker Vicente M. Sablan, who was their sponsor, said he has already arranged the flight of Darwin A. Viloria, Noelito Jumawan and Romeo Tesorero.

“They have been pushing me to accommodate their request to go home because they have problem with their families,” Sablan told Variety.

Two others — Gilbert Oandasan and Carlos Ramos —have been hired as security guards by the Quichocho Security Agency, but they will get their repatriation tickets once their temporary work authorization expires.

Sablan said he has been providing the basic necessities of Viloria and his companions since they arrived on Saipan for jobs that did not exist.

Their stay in the CNMI, however, has been questioned by the Department of Labor as they claim to be victims of illegal recruitment in the Philippines.

The “tourists” are allowed to stay in the CNMI for 30 days only, but Labor Director Barry Hirshbein said their stay was extended for “simple humanitarian reason.”

The “tourist” cannot file a labor complaint and they were considered by Labor as “cooperative witnesses.”

Sablan noted that Viloria and his companions arrived here as tourists but didn’t have round-trip tickets.

According to Consul Belinda M. Ante of the Philippine Consulate General on Saipan, Consul General Wilfredo DL Maximo has already informed the Philippine Overseas Employment Administration to extend any assistance to Viloria and his companions if they will file a case against their recruiter.

Upon their arrival in the Philippines, the Overseas Workers Welfare Administration may temporarily take custody of the “tourists” while preparing the complaint against their recruiter, Yolanda Alfante of Pasay City, Metro Manila.

Viloria told Variety that he was determined to press charges against Alfante, who, he added, was now recruiting Filipino workers for Guam.

Viloria was among the 12 “tourists” brought here by Alfante who received placement fees from them amounting up to $2,000 per person.

Seven of them have already returned to the Philippines.

Director Hirshbein Speaks At Chamber Luncheon

AS BUSINESSES COMPETE FOR LIMITED WORKER SLOTS
'Big projects will get priority'

By Stefan Sebastian
Business Editor

Labor director Barry Hirsbein answer questions about the pre-transition period during yesterday's Saipan Chamber of Commerce general membership meeting at the Hyatt Regency Saipan's Sandcastle. (Jacqueline Hernandez) The federal cap on the number of foreigners labor officials can permit to work in the Commonwealth after the passage of legislation federalizing local immigration laws has yet to be reached, according to Division of Labor chief Barry Hirshbein, but regulators must still give many available openings to key development projects to spur economic growth.

“The numbers look good,” Hirshbein said before a meeting of the Saipan Chamber of Commerce Wednesday at the Hyatt Regency Hotel in Garapan, adding that Labor currently has about 300 employment slots available below the more than 22,400 worker limit imposed by the bill.

The federalization cap has business leaders in the Commonwealth shaken, as many expect they will have to compete with each other for available worker slots to fill job vacancies. Many have also voiced fears that the government will give preferential treatment to employers responsible for major construction projects that are beneficial to the local economy.

However, Hirshbein in his speech said such concessions are necessary to encourage future investment in the Commonwealth. “We do have to make allowances for big development projects in the CNMI,” he said, noting new hotels due to be built at Lau Lau Bay and on Tinian. “We have to be sensitive to their needs in terms of encouraging future development.”

Hirshbein acknowledged this might have some consequences for other businesses. “Some of your needs may have to be put on hold” in terms of filling job openings, he said, as a result of this policy.

Businesses that rely on foreign workers, he added, should consider attempting to extend their work visas for six months in anticipation of the federal government's takeover of immigration rules, and later submitting an application for a two-year renewal.

“There's no guarantee that this will work,” said Hirshbein. “But if you time it well, you could submit a two-year renewal application for a worker in whom you feel secure about your need to keep beyond the end of the transition period. We believe the federal government will honor those application and those permits approved during the transition period.”

Additionally, Hirshbein noted a recent change in Labor's policy for work visa applications. Previous Labor rules stipulated that incomplete applications would be rejected. During a management meeting Wednesday, however, officials clarified the policy to state that an application missing a health certificate will no longer be rejected automatically but one must be provided before the application is approved.

Thursday, June 19, 2008

Best Practices Comparison

Labor: NMI immigration system better than feds’
Friday, 20 June 2008 00:00 By Junhan B. Todeno - Variety News Staff
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LABOR Deputy Secretary Cinta M. Kaipat says foreign workers who come to the commonwealth find a supportive and fair employment system under the Commonwealth Employment Act of 2007 compared to the federal system.

“The CNMI system is much better and favorable to guest worker,” she said. “We offer some advantages which the feds don’t have.”

Currently, all foreign workers, upon arrival, undergo orientation regarding their rights and responsibilities, medical coverage, health examination and fair employment contract provisions.

There are no orientation and health examination upon entry under the federal system although there’s a small percentage of guest workers with medical coverage, depending on the employers, Labor said.

It added that the federal system does not hold employers accountable for current employment of every worker under contract, and it doesn’t provide mandatory mediation of employment dispute,

The CNMI, in contrast, provides accountability and mediation assistance, Labor said.

In the commonwealth, it added, foreign workers are required to live in employer-supplied housing which is not a requirement under the federal system.

The federal system, however, allows the transfer of a worker to new employer in the event of unsatisfactory or termination of employment.

Under the local system, transfer is allowed only through an administrative review.

Labor said its other “best practices” are the practical incentives to hire citizens, government employment restricted to citizens, preference for on-island foreign workers over new entrants, foreign language notice to incoming workers before as to their legal and regulatory rights and responsibilities, age requirement of 21 for entering workers, limitations on permitted deductions from wages, and access to administrative process for resolution of complaints.

Kaipat also noted that guaranteed full payment for repatriation travel is covered under the commonwealth system.

“We have a good guest workers program that the feds don’t have,” she said.

Tuesday, June 10, 2008

Unpaid Claims

Kaipat: Guest workers can’t get all of unpaid claims

Wednesday, 11 June 2008 00:00 By Junhan B. Todeno - Variety News Staff
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LABOR Deputy Secretary Cinta Kaipat says the surety bonds company cannot pay the total claims of guest workers whose wages were not paid by their employers.

Under the bond agreement, the company can only pay the workers three months of their wages, she said.

But for those employers who have already left the CNMI, Labor can do nothing for these workers because “their employers are already outside our jurisdiction,” she said.

This is why Labor urges guest workers to file their cases without delay so that the department can take immediate action, she added.

But Kaipat said they are going after employers who are still in the CNMI but have not honored their responsibility to their workers.

“They don’t deserve to employ any foreign workers,” she said.

Coalition of United Workers (NMI) president Irene Tantiado has asked Labor to clarify the time frame in waiting for payments from employers or bonding companies.

She said guest workers are also complaining about the $30 filing fee they have to pay Labor for assisting them to file with the small claims court.

If guest workers are awarded their claims, she said, they can only get $3,000 as maximum payment. “Employers will intentionally not pay the workers because they believe the workers will file small claims,” Tantiado added.

During the recent meeting of the Coalition of United Workers (NMI), representatives of the Bangladesh community said they are willing to compromise even if some of them have over $3,000 in unpaid wages.

“More than 100 Bangladeshi workers want to go home if they are paid the maximum claim of $3,000,” she added.

Wednesday, March 26, 2008

Hearing Office To Address Wave of Denial Appeals

CNMI News
Thursday March 27, 2008


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‘Wave’ of appeals floods Labor

By Emmanuel T. Erediano
Variety News Staff



A “WAVE” of appeals from denial orders that were the “natural” result of resolving thousands of pending applications and labor cases is now hitting the Department of Labor’s administrative hearing office.

Labor hearing officer Jerry Cody, in an interview yesterday, said they will deal with a lot of appeals by taking action.

Starting next week, Cody said, the administrative hearing office will hold hearings or take appropriate actions on 40 denial appeals every Thursday.

He said he will be working with another hearing officer, Herbert Soll.

Cody said in the first two months of this year, the hearing office received over 250 denial appeals.

These appeals are not considered backlog but as the “natural” result of the labor division’s efforts in resolving 11,000 pending applications and labor cases of the previous years.

Labor Division Director Barry Hirshbein earlier said they have cleaned up the backlog, and will resolve all applications and labor cases in a short period of time.

Every time there is an increase in the number of cases the labor division resolves, the hearing office will deal with the same number of appeals.

Cody said they have already started announcing the names of the workers scheduled to appear for the hearing on denial appeals, and they will continue to make similar announcements every week.

Employees who have filed appeals with Labor should check the newspapers every Monday to see if they are among those scheduled for the Thursday hearing, Cody said.

Tuesday, March 18, 2008

Foreign Workers and S. 2739

Wednesday March 19, 2008


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‘Foreign workers can transfer anytime if S. 2739 becomes law’

By Gemma Q. Casas
Variety News Staff



FEDERAL Labor Ombudsman Jim Benedetto says the ability of foreign workers to transfer is guaranteed if S.2739, which includes the CNMI federalization measure, is enacted into law.

But he said questions about the implications of certain provisions of the bill can only be determined after the U.S. Department of Homeland Security adopts specific regulations.

The U.S. Senate is expected to deliberate and act on S. 2739 after their Easter break.

Under the bill, Benedetto said the U.S. Department of Homeland Security is tasked to establish, administer and enforce a system for allocating and determining the numbers, terms and conditions of permits that will be issued to each guest worker in the CNMI who will be considered as transitional worker.

Benedetto said this means that the department has to pass implementing regulations that should determine how many years transitional workers can work in the commonwealth, among other things.

“It could be a year, three years or five years. That has not been determined yet pending the passage of regulations,” Benedetto told Variety in a phone interview when asked about the length of stay of transitional workers.

He said the provisions of S. 2739 concerning the Northern Marianas should be implemented within a year after its enactment, but it also has a clause that allows the federal government to extend them for another 180 days.

The measure aims to gradually reduce the number of foreign workers every year. By 2014, the CNMI can no longer employ foreign workers.

But Benedetto said this is impossible to achieve given the islands’ small population, and this why the drafters of the bill inserted a clause to allow an indefinite extension of the federal guest worker program in increments of five years, subject to the approval of the U.S. Labor secretary.

“If the secretary of labor determines that such an extension is necessary to ensure an adequate number of workers for legitimate businesses in the commonwealth, the secretary of Labor may, through notice published in the Federal Register, provide for an additional extension of up to five years,” a portion of S. 2739 stated.

Tuesday, March 11, 2008

Citizens of 31 Countries Barred From Entering NMI

Tuesday March 11, 2008


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Citizens of 31 countries barred from entering NMI

By Gemma Q. Casas
Variety News Staff



CITIZENS from 31 countries, including a province in China, are barred from entering the Northern Marianas due to security reasons.

Attorney General Matthew Gregory designated the “excluded locations” on Jan. 24 and a list was published in the Commonwealth Register.

The excluded locations are Afghanistan, Algeria, Bahrain, Bangladesh, Cuba, Egypt, Eritrea, China’s Fujian province, Indonesia, Iran, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Myanmar, Nigeria, North Korea, Oman, Pakistan, Qatar, Saudi Arabia, Somalia, Sri Lanka, Sudan, Syria, Tunisia, Venezuela, the United Arab Emirates and Yemen.

Although a commonwealth of the U.S., Northern Marianas remains in control of its borders and immigration system.

In a two-page public notice, Gregory said he has the discretion to decide whether to allow citizens of the 31 countries secure a waiver of exclusion based on several factors.

“I have outlined some of the factors that will be considered when exercising my discretion in deciding whether to grant or deny a request for a waive of exclusion. Note that 1) this is a non-exhaustive list and that there may be other relevant factors considered in making the decision. 2) an applicant may satisfy one or more of the factors but still be denied for other reasons, and 3) this list does not create any rights, nor should it create an expectation that a waiver will be granted if factors on the list are satisfied by an applicant. Also, the applicant must comply with all other requirements of the Immigration Regulations in the application process, including bonding, sponsor requirements, etc.”

If any of the citizens of the 31 excluded locations are granted permission to visit the CNMI, Gregory said special conditions may be imposed on them.

For visitors, this means they will not be allowed to change their category from tourist to documented worker while on island.

The extension of their visitor entry permit, or VEP, may also be subjected to special conditions.

Tuesday, March 4, 2008

The Periodic Exit Exemption

Tuesday March 4, 2008
Maharlika
Saturday, March 01, 2008

LABOR FRONT
The periodic exit exemption


By Ferdie de la Torre
Reporter
Q: How can an employer get a key employee exemption pursuant to the periodic exit requirement?

A: According to the rules and regulations of the Public Law 15-108 (new labor reform law), employers who carry out the periodic exit requirement of at least 20 percent of the exit-eligible work force during the period from Jan. 1, 2008 through Dec. 31, 2008 will be able to claim a key employee exemption for an additional three percent of the full-time work force.

Employers who carry out the periodic exit requirement of at least 30 percent of the exit-eligible work force from Jan. 1, 2009 through Dec. 31, 2009 shall be able to claim a key employee exemption for an additional two percent of their exit-eligible work force.

* * *

Q: When can employers with only one exit-eligible employee accomplish the periodic exit for that worker?

A: According to the regulations, employers with only one exit-eligible worker should make the periodic exit for that employee no later than Sept. 30, 2009 unless alternative arrangements are made with the Labor Director before June 30, 2009. The Labor Director will accommodate reasonable requests based on personal needs, scheduling problems, vacation or school requirements, or other factors.

* * *

Q: What will happen if Labor finds that periodic exits have not been accomplished by September 2008?

A: The regulations state that in the event Labor determines that periodic exits have not begun or been accomplished by at least 30 percent of the exit-eligible alien workers by Sept. 30, 2008, Labor will hold a lottery.

The lottery will determine which exit-eligible alien workers shall begin the periodic exit during the period Jan. 1, 2009 through March 30, 2009 in order to ensure that a sufficient number of exits will occur in order to keep the exit program on schedule so that there is no bunching of exits at the end of the initial three-year period.

In the event that Labor finds out that periodic exits have not begun by at least 60 percent of the exit-eligible foreign workers by Sept. 30, 2009, Labor will hold a lottery. The lottery's purpose is to determine which exit eligible alien workers shall begin the periodic exit during the period Jan. 1, 2010 through March 30, 2010 in order to keep the exit program on schedule so that there is no bunching of exits at the end of the initial three-year period.

Disclaimer: Readers should conduct their own research and due diligence and obtain professional legal advice. Saipan Tribune will not be liable for any loss or damage caused by a reader's reliance on information obtained from this section. Submit questions on labor issues to Saipan Tribune via e-mail at editor@saipantribune.com, or by calling 235-6397, 235-2440, or 235-8747 and leaving a message at Ext. 133 or 135. You may also submit questions in person by writing it down and dropping it off at the Saipan Tribune's office on the second floor of the CIC Centre on Beach Road, Garapan.

Labor Says Its Web site Getting Good Turnout

Wednesday March 5, 2008


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Labor says its Web site getting good turnout

By Emmanuel T. Erediano
Variety News Staff



THE Department of Labor’s Division of Employment Services and Training says there has been a “good” turn out for its Web site registration, with 54 local jobseekers already signing in for 167 job vacancy announcements.

Division Director Alfred Pangelinan said 63 employers, mostly from the private sector, have posted job vacancies on Labor’s Web site which came online on Feb. 4.

Initial statistics show that there are three job vacancies for every resident seeking employment.

The division’s 2007 figures showed that only 16 percent of those who registered were eventually hired.

The CNMI private sector pays $3.55 an hour, and most local prefer to work for the government which pays higher wages and offers more generous benefits.

Labor data from January to September 2007 showed that 342 were hired among the 2,114 residents who registered with the Division of Employment Services and Training.

These figures have not varied significantly since 2001.

Labor advised employers and jobseekers they could start transacting business on Feb. through its Web site, www.marianaslabor.net.

Designed by Ron Smith, the Web site allows employers and employees to post job vacancy announcements or submit employment applications.

With the implementation of the controversial labor law, P.L. 15-108, two months ago, Labor started enhancing its employment services program.

Pangelinan, in an earlier interview, said an employer has 14 days to inform Labor about the “action” it took with the jobseeker referred by the department.

An employer has to explain and justify to Labor why it did not hire a referred applicant.

Job vacancy announcements in newspapers are now posted for two consecutive days in a week, and this has to be for two weeks, for a total of four newspaper clippings in 15 days.

All companies now are required to maintain a 20 percent resident workforce.

Monday, March 3, 2008

Orientation For New Workers

Tuesday March 4, 2008


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Labor orientation for new workers to be on videotape

By Raquel C. Bagnol
Variety News Staff



THE one-hour orientation for new guest workers that has been implemented in line with the newly enacted Public Law 15-108 will soon be on videotape in English, Chinese and Korean languages.

Director of Labor Barry Hirshbein said the videotape will be shown to the newly arrived guest workers.

Hirshbein conducted the first orientation seminar for the new foreign workers at the Department of Labor office last month.

He said the orientation is necessary to ensure that new workers are aware of their rights and privileges while working in the CNMI.

The orientation, Hirshbein added, will also help workers understand what is in their work contracts and prevent future conflicts which may arise between employers and workers.

The orientation for workers in English is scheduled at 9 a.m. every Tuesday while the Chinese and Korean presentations are scheduled at 10 a.m. and 11 a.m.

Labor Now Requires All Jobs To Be Advertised

Local
Tuesday, March 04, 2008


Labor now requires all jobs to be advertised


Under a new policy, the CNMI Department of Labor is now requiring all jobs of any kind for which an employer wants to hire a foreign worker to be posted on the department's new jobs website, www.marianaslabor.net.

“In the past, we had waivers of various kinds, but no more,” said Cinta M. Kaipat, deputy secretary of Labor. “Every job, whether it is permanent or temporary, full-time or part-time, TWA or casual labor-absolutely everything will be on the website for citizens and permanent residents who are looking for jobs.”

“The website is free,” Kaipat said, “so there is no expense to an employer in posting the job. And the department acts quickly in referring citizens and permanent residents for jobs on the website postings, so there is no delay.”

The department has had objections to the all-inclusive posting requirement from employers who say their jobs are just temporary or that they are small businesses not required to hire local citizens.

“I have dealt with the objections,” Kaipat said, “and my decision is that all jobs will be posted. I know that at the end of the road, perhaps the department cannot require all categories of employers to hire a local citizen, but we certainly should assume that every employer will want to do the right thing. If a qualified citizen comes along, an employer who is a part of this community should hire that person whether they are forced to do so by the Labor Department or not.”

The website provides a useful informational tool for the community. “The department's policy on posting all jobs means that the community knows about all jobs for which foreign national workers are being considered. Also, the community knows how many jobs are out there at any given time. This is useful to legislators whose constituents may be looking for jobs,” Kaipat reported.

“Some of our citizens need to work part-time or they want to work for only a few months because they have family responsibilities,” Kaipat said. “That is the reason I want all the part-time, temporary, and TWA jobs posted.”

The Labor Department's objective is to find suitable employment opportunities for as many citizens and permanent residents as possible.

“We are also posting jobs so that our on-island foreign workers can know about the jobs available for them,” Kaipat said. The Labor Department enforces a secondary preference for on-island foreign workers. “Finding jobs for our on-island foreign workers is better policy than bringing in new foreign workers to the Commonwealth,” Kaipat said.

The Labor Department is enforcing the emergency regulations published in December 2007 that prevent employers from bringing new unskilled workers to the Commonwealth while the workers displaced by garment factory closures are being absorbed into new jobs.

“We have registered many foreign workers who are looking for unskilled jobs, so we have no problem supplying unskilled labor to any employer who needs it,” reported Alfred Pangelinan, Director of Employment Services.

Thursday, February 28, 2008

Department of Labor and SWAT Invited to Present to 15th General Assembly of the Association of Mariana Islands Mayors On Labor Issues

Alfred Pangelinan, Director of CNMI Labor's Employment Services Division; Bert Johnston, Education Director of Trades Academy of Guam; Cinta M. Kaipat, Deputy Secretary of CNMI Department of Labor; Eric Plinske, Director of NMC's Small Business Development and SWAT Coordinator; Edith Guerrero, Executive Director for the CNMI Workforce Investment Agency (WIA); and Alice Concepcion, CNMI Labor Employment Services Supervisor.
SWAT Team at 15th General Assembly of the Association of Mariana Islands Mayors
Deputy Labor Secretary Cinta Kaipat speaks to Assembly on PL 15-108 and SWAT
Deputy Secretary of Labor Kaipat fields questions from the mayors and council members
SWAT Coordinator Eric Plinske (NMC) gives an overview of SWAT's mission
List of SWAT Partners


Friday February 29, 2008

NMI mayors no show at general assembly

By Emmanuel T. Erediano Variety News Staff

THE 15th general assembly of Association of Mariana Islands Mayors, Vice Mayors and Municipal Council Members is hosted by the CNMI but none of its mayors showed up for the meeting that started yesterday at the Saipan Grand Hotel in Susupe.

Sixteen municipal officials traveled all the way from Guam to attend the assembly where they discussed the economic impact to the region of the pending military build-up.

The group will elect a new set of officers today.

Tinian Mayor Jose San Nicolas confirmed attendance days ago, but due to “unforeseen circumstances,” he said his presence will not be possible.

San Nicolas said he is sending Tinian Municipal Council Chairman Antonio H. Tudela to attend on his behalf.

He said in a letter addressed to the association that “I strongly value our association and believe that the end results of our objectives will be realized if we work together.”

San Nicolas said he has to hold a very important meeting with the department heads on Tinian.
Rota Mayor Joseph S. Inos also sent a letter to group saying his tight schedule does not allow him to leave Rota. He instead sent Alfred M. Apatang Jr. as his proxy.

Northern Islands Mayor Valentin I. Taisakan, according to the assembly secretariat, did not confirm his attendance prior to the assembly.

Saipan Mayor Juan B.Tudela, the secretariat said, has resigned from the association years ago.

Those who attended from the CNMI are the members of the Saipan and Northern Islands Municipal Council, which is composed of Chairwoman Antonia M. Tudela, Vice Chairman Ray Blas Camacho and member Felipe Q. Atalig; the Rota Municipal Council’s Roy James A. Masga, Alfred M. Apatang Jr., and Vicente M.Calvo; and the Tinian council’s Antonio Borja, Charlene M. Lizama and Eugenio L. Villagomez.

Department of Labor Deputy Secretary Cinta Kaipat, Division of Employment and Training Services Director Alfred Pangelinan, Labor supervisor Alice Concepcion, Northern Marianas College’s Eric Plinske and Workforce Investment Agency’s Edith Deleon Guerrero were invited to make a presentation on CNMI labor issues. They all showed up.

Guam Mayors Council executive director John F. Blas declined to comment on the CNMI mayors’ absence.

All he could say is that the meeting is important as it focuses on the pending military build-up.
“The economic opportunity brought about by the military build up on Guam will, at some point, impact the CNMI,” Blas said.

He added that yesterday’s meeting also focused on CNMI’s labor situation and the Guam Contractors Association need for skilled workers.

Wednesday, February 27, 2008

Kaipat: New Law Will Improve Labor System

CNMI News

Thursday February 28, 2008

Kaipat: New law will improve labor system

By Raquel C. Bagnol
Variety News Staff

THE islands’ economic hard times were among the considerations behind the enactment of Public Law 15-108, according to Deputy Labor Secretary Cinta M. Kaipat.

Some businesses believe that the law will make things more difficult for companies to survive the CNMI’s economic slump.

During yesterday’s meeting with legislators, Kaipat said the law aims to make the labor system more efficient.

“We know we were in for prolonged economic hard times, and there was nobody who can lend us money to bail us out of the depression, hence we (want) to lower costs for businesses and speed up the process so citizens can take advantage of job opportunities,” Kaipat said.

She said they remain optimistic that the CNMI economy will soon recover.
“We needed a law that will work for us both in good times and in bad times,” she said.

As a House member in the previous Legislature, it was Kaipat who introduced the bill that became P.L. 15-108.

She said the old law had to be changed.

“The labor law passed in 1983 was outworn and outmoded – it had undergone a patchwork of amendments over the years and just couldn’t serve us well anymore,” Kaipat said.

The implementation of the new labor law will help prevent the occurrence of more labor violations, she said.

P.L. 15-108 was signed by Gov. Benigno R. Fitial on Nov. 9, 2007 and took effect on Jan. 1, 2008.

Thursday, February 21, 2008

Labor's Duty To Prefer Local Workers Affirmed

Friday, February 22, 2008


Labor's duty to prefer local workers affirmed


By Ferdie de la Torre
Reporter

Labor Secretary Gil M. San Nicolas yesterday said Labor has a continuing obligation to prioritize U.S. citizens and residents in employment opportunities.


San Nicolas underscored the importance of giving preference to local workers in his decision affirming the Labor Administrative Hearing Office's order that sided with a local applicant who was applying for the post of front desk supervisor at Hafadai Beach Hotel. The hotel had initially rejected her application because she could not speak Japanese.


San Nicolas affirmed the administrative hearing officer's ruling on the language-preference issue and the decision to hire a local, Jannie M. Tenorio, as front desk supervisor.


The Secretary, however, reversed the hearing officer's order that allowed the former front desk supervisor, Jackilyn T. Ruan to transfer to another suitable employer.


San Nicolas granted Hafadai's request to allow the hotel to create and fund another position to retain Ruan as an employee.


“In these extremely difficult economic times, public policy favors the granting of Hafadai's request,” San Nicolas pointed out.


Labor records show that Ruan's renewal application was denied based upon the employer's rejection of a local applicant, Tenorio, who had been deemed qualified by the Labor's Division of Employment Services and Training.


At the hearing, Saipan Hotel Corp., owner of Hafadai Beach Hotel, acknowledged that Tenorio has the basic skills to perform the job of front desk supervisor but argues that Tenorio's lack of Japanese language skills renders her unqualified.


In his administrative order issued on May 16, 2007, Hirshbein affirmed the Labor director's decision to deny Saipan Hotel Corp.'s application to renew the contract of Ruan as front desk supervisor at Hafadai Beach Hotel.Hirshbein granted Ruan, an alien worker, 45 days to seek a new employer.


The hearing officer ruled that while the employer, Saipan Hotel Corp., stated in the Job Vacancy Announcement that they would prefer someone with Japanese language skills, it is not appear that such skills are prerequisite for the performance of the duties of this position.


“However, even if these skills are necessary, it appears that they are attainable through basic classes and on-the-job experience,” he said.


Under these circumstances, Hirshbein pointed out, the employer is required to provide the necessary training.Hafadai and Ruan appealed.T


he appellants, through counsel Marcia K. Schultz, argued that contrary to the hearing officer's ruling, it is critical for a hotel to have Japanese speakers at the front desk as well as supervisors who can deal efficiently with emergency situations.Hafadai said that after receiving the administrative order, the hotel offered Tenorio the position of front desk supervisor, which she accepted.


The hotel also began making arrangements to institute Japanese language training for its employees.


Hafadai requested the Labor Secretary to authorize the hotel to create and fund another position to retain Ruan so as to ensure that a Japanese-speaking staff is available on each shift at all times.


In his order, San Nicolas said Hirsbein properly handled the case.


San Nicolas said that, although Tenorio lacked the Japanese-language proficiency that distinguished her from Ruan, lack of a “preferred language skill” in itself is not enough to disqualify an otherwise qualified resident and U.S. citizen applicant.


The Secretary said Ruan herself testified at the hearing that she acquired her Japanese-language skills through attending language classes provided by her employer and through on-the-job training.


“Thus, Hafadai should hire and train Tenorio as it did with Ruan. In fact, CNMI Labor laws require such training,” he pointed out.


San Nicolas said that since the hotel offered the job to Tenorio, the Tenorio hiring is no longer at issue at the time of the appeal.


“Nevertheless, it should be stated for the record that the hearing officer's ruling on the language issue should be affirmed,” he added.On the creation of a new position, San Nicolas said Ruan's employment is no longer an impediment to Tenorio's hiring.


“Moreover, Ruan's experience and language proficiency will be an asset that would contribute to the successful operation of this employer's business,” he added.

Tuesday, February 19, 2008

Labor Clarifies Transfer Process

Wednesday February 20, 2008

Local

Wednesday, February 20, 2008

Labor clarifies transfer process
By Agnes E. Donato
Reporter

The Department of Labor has clarified how foreign workers can transfer jobs under the new system.

Although consensual and expiration transfers have been eliminated, guest workers may still transfer from one employer to another, according to the department's progress report on the implementation of Public Law 15-108.

Deputy Labor Secretary Cinta Kaipat, the former lawmaker who sponsored the labor law in the 15th Legislature, prepared the report.Under the new process, Kaipat said, a worker seeking to transfer jobs registers with the Division of Employment Services and is given the so-called “employer intent form.”

The worker finds an employer willing to hire him or her. That employer signifies his intent to hire the worker by signing the form, which the worker returns to Employment Services.

Workers and their representatives may access the Labor website to find available jobs for which U.S. citizens and permanent residents have not applied for.

Employment Services checks to be sure that the job is posted on the website so that locals are notified of their availability.

After the normal referral period passes, Employment Services sends the request to transfer to all DOL units and to a designated hearing officer.

Any DOL unit may object to the transfer for reasons such as criminal convictions, pending labor cases, or suspected illegal sponsorship.

A hearing officer, after receiving objections at a hearing, will issue an order granting or denying permission to transfer.

If permission is granted, the employer has 10 days to file the transfer application with Labor Processing. If permission is denied, the employee and employer have a right to appeal.

The new transfer process has been in effect since Monday, Feb. 4, 2008.In her report to the Legislature, Kaipat also said that assistance is being provided to businesses.

She said that upgraded technology allows for an automated processing of employment renewals and transfers.

She added that the department has eliminated the backlog in processing applications, and it expects that, with the new system, nearly all new applications will be processed within 30 days.

She informed lawmakers about the Labor's new website, which allows businesses to post job vacancy announcements at no cost.

Kaipat also reported that the department hopes to have pending labor cases from 2005, 2006, and 2007 to be completed by June 2008. A few cases are expected to be appealed to the secretary.

A new process has been put in place to ensure appeals are decided within 30 days of being filed.

Labor Department personnel are conducting informational meetings on Saipan, Tinian, and Rota.

Those interested in receiving a presentation may send an email to depsec2@gmail.com.

Labor Chief Confident In Kaipat's Capability

Wednesday February 20, 2008

Local

Tuesday, February 19, 2008

Labor chief confident in Kaipat's capability

By Ferdie de la Torre
Reporter

Labor Secretary Gil M. San Nicolas has expressed confidence that former representative Cinta Kaipat will perform her new job well as Labor deputy secretary, particularly in the outreach program for Public Law 15-108 or the new labor reform law and its regulations.

San Nicolas told Saipan Tribune that everyone knows that Kaipat used to work at Labor as administrative hearing officer.

“With her knowledge and expertise, she can help the department educate and inform the community, especially the employers and the workers regarding the new law and the new procedures that's taking place in the department,” he said.

As lawmaker, Kaipat was the principal author of the controversial P.L. 15-108.

In an earlier interview, Kaipat said she is focusing on the community outreach program to educate the public about the new law.

Kaipat said she is very happy because the outreach program that she already started has been getting positive response from employers and employees.

Before she became a lawmaker, Kaipat used to serve as Labor administrative hearing officer for five years.

Gov. Benigno R. Fitial said Kaipat as Labor deputy secretary will be in charge of community outreach “to be sure everyone understands the much-improved structure of our citizen worker-preference and or guest worker program.”

The governor said that, as author of the new labor reform law, the former congresswoman spent more than a year in getting it drafted in a way that took into account the input from all parts of the community, including new provisions for foreign workers.

Sunday, February 17, 2008

San Nicolas affirms disqualification of alien worker who paid $4K to get job

Local

Monday, February 18, 2008

By Ferdie de la Torre Reporter

Department of Labor Secretary Gil M. San Nicolas has upheld the Labor Administrative Hearing Office's decision that permanently barred an alien worker who paid $4,000 to an unlicensed recruiter in China to get a job in the CNMI and was found to have entered into the Commonwealth through a fraudulent scheme.

San Nicolas said Shunpeng Chen's contention on appeal that his recruiting agent is responsible for any wrongdoing “hardly deems plausible as he remained idle for over two years with no attempts to rectify the wrongdoing.”

“The fact that Mr. Chen was present in the Commonwealth for over two years prior to the labor hearing date proves that he is not needed for employment,” said the secretary in affirming the order issued by then administrative hearing officer and now Labor director Barry Hirshbein.

According to Labor records, Chen filed his Labor case in Nov. 2005. He arrived in the CNMI on June 25, 2005 and alleged he was unable to find his employer, CP Central Pacific Corp.

Chen testified that when he arrived in the CNMI he stayed with a friend. He asked his friend to help find his employer.

In August 2005, Chen came to Labor and met with Tony Yen who helped him secure his entry permit.

Chen did not ask Yen to help find Central Pacific Corp. In November 2005 complainant again asked Yen for help and this Labor case was followed.

Chen testified he paid about RMB 30,000 ($4,000) in China to secure employment in the CNMI. He did not use a licensed recruiter. The complainant did not make a copy of the documents that he signed. He testified that he worked as a technician in the Lin Xin Garment factory in China from 1998 to 2005. That was his only job.

Chen's nonresident worker affidavit, submitted in support of the employment application, states that he worked as a waiter from 2000 through 2004.

Complainant stated that the information is not true. He testified that he did not sign the affidavit. He also testified that the signature of the employment contract is not his.

In his order, Hirshbein revoked Chen's work/entry permit and ordered him to depart the CNMI within 15 days after a repatriation ticket is delivered to Labor.

Hirshbein permanently barred Chen from working in the CNMI as a nonresident worker.

The administrative hearing officer said Chen shall take nothing by his complaint against Central Pacific Corp.

Hirshbein, however, sanctioned Central Pacific Corp. to pay a $4,000 fine to the government and permanently barred the company from employing alien workers in the CNMI.

Chen appealed. He told San Nicolas that prior to his arrival in the CNMI, he was not aware or familiar with labor regulations and the processing procedure.

He claimed that all the documents for his employment application required Labor were asked by his recruiting agent.

Chen said the agent should be totally held responsible for any fraud document submitted to Labor.

In dismissing the appeal, San Nicolas said Chen's entry into the CNMI was clearly fraudulent.San Nicolas said the nonresident worker affidavit signed and submitted to Labor states that Chen worked as a waiter from 2000 to 2004.

San Nicolas said Chen testified that that information is not true and that he did not sign that affidavit.

Saturday, February 16, 2008

Labor holds orientation for new guest workers

Thursday February 14, 2008

By Raquel C. Bagnol Variety News Staff

IN line with the newly enacted Public Law 15-108, nine foreign workers who arrived here over the weekend participated in first orientation conducted by the Department of Labor at its office in San Antonio on Tuesday morning.

Director of Labor Barry Hirshbein said P.L. 15-108 requires all foreign workers to attend an orientation regarding their rights and obligations while employed in the CNMI.

“This orientation is a brand new process, one of the many changes we are going through and this will be an ongoing program,” he said. “It is important because we need to know that the workers understand what is in their work contracts, and the workers need to know what their rights are, what is expected of them and what they can expect from their employers.”

Hirshbein urges guest workers to immediately consult Labor in case problems arise in the workplace.

“We would like to help prevent conflicts from arising between employers and employees,” he said. “The Department of Labor is a place where workers can turn to when any problem crops up, but workers should not come to us as a last resort because things may be beyond control by then.”

He added, “We rely on you to come and tell us immediately and not wait for the crisis to get big before you react.”

The orientation in English for workers is scheduled at 9 a.m. every Tuesday. The Chinese and Korean presentations are scheduled at 10 a.m. and 11 a.m.

Hirshbein said there are over 20,000 foreign workers on Saipan.

Tuesday, February 12, 2008

2-13-08 Saipan Tribune: C. Reyes Ltr to Ed--"Response to Mr. Wicker"

Wednesday, February 13, 2008

A response to Mr. Wicker

Mr. Willens asked me to respond to the letter from the Communications Director of the Senate Energy and Natural Resources Committee published in the Variety on Feb. 8, 2008. Mr. Willens is still waiting for a written response from a Committee lawyer to his detailed analysis of the plain meaning of H.R. 3079.

It is clear that Mr. Wicker does not understand H.R. 3079. It establishes a permit system under which each employer in the Commonwealth must have a permit in order to hire a nonimmigrant foreign worker. It does not matter whether the foreign worker is presently in the CNMI or enters under the H visa program. He or she cannot get a job unless the employer has a permit to hire a foreign worker for the particular job. Under the current bill, these permits must be reduced to zero by Dec. 31, 2013. If there is no extension of the transition period, the law would require the departure of more than 19,000 foreign workers currently working here.

Mr. Wicker's lack of familiarity with the legislation is also made clear by his suggestion that, after the termination of the transition period, “the nonimmigrant worker program under the INA will continue indefinitely, along with all of the provisions of the U.S. immigration laws.” He seems to forget that by that time the CNMI will be subject to the national caps on H-1B and H-2B visas. If they are allocated proportionally to population, that will entitle the Commonwealth to 10 or fewer workers in each category, which would clearly fall far short of CNMI’s labor needs.

Mr. Wicker's letter, however, did provide some new information. The Senate Committee has finally decided to write a Committee report regarding its recommendation that the Senate pass H.R. 3079. When the Committee decided last December to bundle this “non-controversial” bill with 50 or more other bills from the House of Representatives, there was no suggestion that the Committee would file a report explaining its action. Why is the Committee asking the full Senate to vote on a bill any day now without any explanation from the Committee as to what the bill means and what will be its impact on the Commonwealth's economy, citizens, and foreign workers?

Why should we be surprised? This is the same Committee that endorsed a bill based on the facts of 10 years ago, when Allen Stayman was in the Clinton Administration, rather than the situation existing today in the Commonwealth. This is the same Committee that requested a report from the Government Accountability Office and then refused to defer action until the GAO completed its work-now only a few months away. This is the same Committee that endorsed a House bill that is substantially different from the version considered by the Committee at its hearings in July 2007, without pausing to evaluate the changes made by the House of Representatives or asking for comments from the Commonwealth.

Charles P. Reyes Jr.
Press Secretary
Capital Hill, Saipan

2-12-08 Saipan Tribune: "Mess Left At Labor Cleaned Up"

Local

Tuesday, February 12, 2008

'Mess left at Labor cleaned up'

By Agnes E. Donato Reporter

Gov. Benigno R. Fitial said yesterday that the mess left behind by past administrations at the Department of Labor has now been cleaned up.

Fitial announced a “new era” at Labor as he disclosed the department's installation of a new computer system, a new website, cleaning up the backlog of applications and labor cases, and new operating procedures.

Fitial also announced his appointment of former Rep. Cinta Kaipat as the new Labor deputy secretary.

Labor director Barry Hirshbein and other Labor officials demonstrated to the media yesterday how they upgraded the Labor and Immigration Identification System with the new installation of a new computer system.

After the demonstration, Labor Secretary Gil M. San Nicolas, Hirshbein, Kaipat, and other Labor officials joined the governor in the news briefing.Fitial said it took two years for his administration to clean up the mess left over from past administrations.

The governor said with the new computer system the LIIDS system has been upgraded for the first time since 2000.

“We have new equipment and new software. The system came online last week. We recognize the hard work put up in by Tom Torres (LIIDS computer specialist 3) to make this happen and the able assistance of Ron Smith (web master),” Fitial said.

With respect to the new website, Fitial said Smith also designed and implemented it.

“This is free for employers, free for prospective employees, and free for the general public. The website is a very efficient way for everyone to see what jobs are available,” he said.

In an interview with Saipan Tribune, San Nicolas said he has been waiting for this computer system project for a long time.

“Our main goal for the automation is to make it easier for all the employers to process their papers, their applications to Labor and Immigration through the automation system,” San Nicolas said.

Hirsbein explained that under the new system, they automatically generate a voucher for a customer electronically, then the customer will be allowed to go down and pay for that voucher. The customer will then return and bring proof of payment.

“We enter the voucher, that application will then be taken down to LIIDS, it will be scanned into the computer system. That application will never come back here to Labor Processing,” he said.

The Labor director said all of the papers found in the shelves at Processing will soon be gone. “The application will be reviewed on the computer. Anyone of my staff can pull out the application out of the processing and review the applications, make deficiencies.” he said.

The approval, Hirshbein said, will be sent out electronically or the deficiency will be sent out by e-mails if the employer has given them their e-mail address and they can correct the deficiencies.

“All of these are tied in with the Employment Services that allows you to post your JVA [Job Vacancy Announcement] online, electronically approve the JVA, and all those systems are tied together,” he said.

Under the new system, Hirshbein pointed out, there will be less chance of misplacing documents and things will be reviewed efficiently.

Fitial said that Labor Employment Services director Alfred Pangelinan and Division of Employment Services supervisor Alice I. Concepcion and their staff are upgrading the services provided to citizen applicants. They are also helping run the new foreign worker transfer program.

On the backlog issue, Fitial cited that Labor had a backlog of over 11,000 applications and delays as long as a year in getting applications acted on by the department.

He said Labor director Hirshbein and his staff at Processing Section have cut the number to less than 100 pending cases from 2007.

That means, Fitial said, that Labor Processing will soon be operating totally under the new labor law.

“It should not take more than a month for applications to be completed by Labor Processing. This will reduce costs for businesses and help foreign workers have stable employment,” he said.

The chief executive said that his administration inherited a backlog of nearly 5,000 cases.

“We finished almost all the cases from 2004 and prior years by March 2007 and we expect to finish all the 2005, 2006, and 2007 cases by June 2008,” he said.

Fitial said when they get that done, the Labor Administrative Hearing Office will be operating totally under the new law.Fitial said they also put up new operating procedures to take advantage of much-improved tools for all of the units at Labor that are provided under the new law.

As for Kaipat's appointment, the governor said that, as author of Public Law 15-108 or the new labor reform law, the former congresswoman spent more than a year in getting it drafted in a way that took into account the input from all parts of the community, including new provisions for foreign workers.

Fitial said Kaipat will be in charge of community outreach to be sure everyone understands the much-improved structure of the local citizen worker-preference and the guest worker program.

The governor commended the people who work at Labor and the management team “for what they have done.”

“We set performance benchmarks, and they stepped up and got the job done,” Fitial added.
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Saturday, February 9, 2008

Q & A #1 On PL 15-108

#1. Labor claim by former employee

You state that a former employee asked you to consent to a transfer, you did that, and then the employee filed a claim against you. This was a common problem under the old labor law, and it has been fixed under PL 15-108. Under the old labor law, employees who could not find a transfer employer within the time limit required under the law would simply file a claim against their former employer in order to stay in the Commonwealth and continue looking for a job. My recommendation is that you contest the case being brought by your former employee. You do not need a lawyer. Simply come to the Labor Department on the day that the case is scheduled and bring with you the documentation that you created within your company about this employee's performance.

Under the new law, there are no consensual or expiration transfers. All transfers are now administrative transfers in which the employee must file with the Department a declaration from a prospective employer before the process can go forward. A hearing officer determines within a very short time if it is a legitimate transfer and, if it is not, the employee is sent home. If it is a legitimate transfer, then the new employer is permitted to file the transfer papers. Under the new law, there are several protections for an employer against an employee who makes fraudulent claims.

First, all incoming foreign workers are required to attend an orientation session when they first arrive during which they will learn that there are penalties for making false claims.

Second, under the new law, employees are required to report unresolved disputes to the Labor Department within a very short time. If they do not, the presumption in any subsequent proceeding will be that there were no disputes.

Third, under the new law, the Labor Department offers a mediation service when foreign workers report disputes so that problems can be resolved quickly without the filing of a complaint. This service is free.

Fourth, under the new law, a foreign worker may stay in the Commonwealth for only 15 days after their permit expires unless they get permission from a hearing officer to stay to pursue a claim.

Fifth, The Labor Department has better procedures now (and has cleaned up the case backlog) so cases should be decided quite quickly after they are filed. In most cases, the Department will separate any claim for transfer relief and decide that right away so that the worker either is in legal status (they have found legitimate work) or not. If they are not in legal status, they know that they will be going home at the end of their claim, regardless of outcome.

#2. Medical care for foreign workers

You state that you are concerned about local workers who are not covered by the new medical insurance program for foreign workers. The Labor Department is also concerned about this. The Legislature enacted a medical insurance for foreign workers in what many hope will be a first step toward medical insurance for all workers. The regulations under the new law will be published by the Department of Public Health shortly. If this program works well over the next year, I expect that the Legislature will consider extending it to local employees as well.

#3. Residence status for education purposes

The Board of Education determines eligibility for attendance. I understand that the Board of Education is looking into the problem that you have reported. The Immigration Division is also looking into the problem you identified with respect to student visas. There have been quite a few complaints about this. I expect they will have a report for the Legislature by March.

#4. Illegal work permits

The buying and selling of work permits was a very big problem under the old law, and it was one of the reasons the legislature passed the new labor law. Now the Director of Labor has the needed tools to find illegal sponsorships more readily. Here is what is being done.

First, the labor Department has upgraded the LIIDS computer system. It is now linked with Rev&Tax and with the office that issues business licenses. This will allow all three arms of the Commonwealth government to act more quickly to stop fraud.

Second, the Director of Labor now has scanned images of all documents submitted in support of an application for employment contracts (that support work permits). He can now see more readily whether an employer is just a "front" or a real business. For example, if an employer asks for approval of contracts for 10 foreign workers and never employed a foreign worker before, the Director of Labor can look at that employer's tax records, bank records, and other evidence to see whether the business can afford to pay all the workers whom they have listed on their requests for approval. If the business does not have adequate evidence, then the requests for approval of employment contracts will be denied.

Third, the new law gives Labor Enforcement new powers to inspect businesses to find out if the employees they listed are really working and to inspect records to see if wages are really being paid. In the past, these enforcement efforts were hampered by a court decision that limited the powers of the Labor Department to go into employer premises for these reasons.

The Labor Department encourages citizens and local businesses to report any information about illegal employment practices or problems that hamper business concerns. Please e-mail depsec2@gmail.com with information that the Department should have. And thank you for taking the time to write.