Friday, June 26, 2009
Local
Friday, June 26, 2009

Labor asks alien workers with awards to register

By Ferdie de la Torre
Reporter

In June last year, the Department of Labor encouraged alien workers to collect their administrative awards by filing small claims in the Superior Court.

Now Labor is notifying those alien workers with administrative awards to go to the Labor Hearing Office to register their bond claims.

Acting Labor Secretary Cinta M. Kaipat told Saipan Tribune yesterday that Labor was required to change its practices because of Superior Court associate judge Perry B. Inos' ruling relating to the bond issue.

Kaipat, however, stated that due to some reasons, many foreign workers will still be referred to the small claims court as Labor has been doing in the past.

Last March, Inos ruled that Labor has exclusive jurisdiction over alien workers attempting to collect on labor bonds and that the courts do not have the authority to enforce these bonds. Inos dismissed for lack of jurisdiction the consolidated small claims filed by 11 Chinese workers against two bonding companies.

The issue stems from a Labor advice to alien workers to file small claims in the Superior Court to recover the awards granted them by Labor against their employers.

Inos noted that the primary reason the workers are unable to recover the awards granted them by Labor is because Labor has thus far not attempted to enforce the insurance companies' obligations under the labor bonds.

Last Monday, Labor placed a one-page notice in this paper, notifying 129 alien workers who were awarded money damages by Labor but have not been paid to visit Labor's Complaint Intake Section.

In the notice, Labor asked the complainants to fill out a declaration affirming that payments have not been paid to them.

The workers were advised to bring a copy of their administrative orders and their entry permit card. The complainants are given until July 20, 2009, to report to the Complaint Intake Section.

Labor said awards in some of these cases may be covered by labor bonds.

When asked by Saipan Tribune about the notice, Kaipat said that Labor was not a party to the case in which Judge Inos issued his opinion so the department did not have a chance to explain why their policy of using the small claims court is the most effective and efficient way to get bond claims resolved.

“We also did not have a chance to appeal. Labor is hopeful that when the courts have a case in which Labor is a party and can present its view, the rule will change,” Kaipat said.

The acting Labor Secretary, however, stated that for now the department must abide by Inos' ruling.

She said two more of the same notices will be issued over the summer.

Labor divided up the entire list so that their staff is not overloaded with many people trying to register at once.

Kaipat explained that a bond claim is entirely separate from a labor case.

“For that reason, a new proceeding must be started. In this new proceeding, under Judge Inos' ruling, the director of Labor brings a claim on behalf of the worker against the bonding company,” she said.

In order to do this, Kaipat explained, the Labor director needs a sworn statement from the workers that the awards have not been paid. When a worker registers the bond claims, she said, a notice is provided to the bonding company, and a hearing is held. Kaipat said the director presents the worker's sworn statement that the award has not been paid, and the bonding company presents any defenses that it has.

“The Hearing Office issues an opinion. Either side may appeal to the Labor Secretary. Once the Secretary's opinion is issued, either party may appeal to the court. Then the bond claim will be in the court, where the department thinks all bond claims should be in the first place,” she said.

Kaipat said the bonding companies are licensed by the Department of Commerce and that only the courts have the power to seize their assets and make them pay awards.

Kaipat cited three reasons why many alien workers will still be referred to small claims court: There is no bond; there is a bond but the worker's claim is covered only partially by the bond; and there is a bond, but the bond does not cover the award at all.

Last year, then federal ombudsman James Benedetto told Saipan Tribune that he refused to turn over to Labor his office's documents regarding the $6.1 million owed to hundreds of alien workers because Labor could provide no assurances that the data would not be used against the workers.

Benedetto said he wants assurances that the records would be used to go after the employers and bonding companies who owe the money, and not the workers.

Robert Myers, lawyer for 127 alien workers, has also filed a class action against Labor and some of its key officials over the same bonding issue.