CNMI delegate proposes long-term labor program for foreign workers

By Bryan Manabat

Saipan--To ignite a conversation regarding the impending expiration of CNMI-Only transitional worker program, Del. Kimberlyn King-Hinds called on the community and stakeholders to provide input on her proposal to amend the existing system to a “long-term labor stabilization model.”

Kimberly King-Hinds

“This process is essential to shaping a labor policy that reflects local needs while meeting federal expectations and long-term development goals,” King-Hinds said.

Before the Consolidated Natural Resources Act, or CNRA, of 2008 was enacted, the Northern Mariana Islands managed its own labor and immigration systems.

Recognizing the CNMI’s unique economic dependence on foreign workers, the CNRA extended U.S. immigration laws to the territory while establishing a special visa category—the CW-1 transitional worker program—specifically tailored for the CNMI.

The CW-1 program was initially set to expire in December 2019, but has

been extended many times. It is now due to expire in December 2029, raising concerns of labor shortages in a contracting CNMI economy, especially in the hospitality, construction and healthcare sectors.

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King-Hinds is proposing the repeal of the current transition framework, replacing it with a “CNMI Labor Stabilization Program."

She wants to place a permanent labor stabilization program “tailored to the CNMI’s unique economic and geographic conditions.”

“Compounded by natural disasters, a global pandemic, and implementation hurdles, the economy has faltered under the constraints of the existing transition program,” King-Hinds said.

“This instability has contributed to sustained outmigration of U.S. citizens, further shrinking the labor pool and making it even more difficult to recruit and retain qualified American workers in the local economy," she added.

According to the Government Accountability Office, the percentage of U.S. workers in the CNMI labor force rose from 30 percent in 2001 to 59 percent in 2020. However, the report also noted a steep decline in the overall size of the Commonwealth workforce.

“A new path forward must be rooted in the realities of the CNMI’s labor market and economic conditions,” King-Hinds said.

“The CW-1 program is unlike most immigration programs in the United States: it is  demand-driven, designed to support U.S. jobs and entrepreneurs in the Western Pacific and does not provide a pathway to citizenship for foreign workers.”

She said it functions as “an economic development tool that responds directly to business needs, helping to prevent reliance on undocumented labor while enabling lawful, regulated hiring that contributes to U.S. citizen retention, training and advancement," she added.

According to the NMI delegate, the CNMI will not be able to curb population decline without economic growth, and it cannot achieve economic growth without access to a sufficient labor force. 

“Recognizing the progress made toward the federal goal of increasing the role of U.S. workers in the economy, the CNMI now faces a critical moment. Continued access to foreign labor, flexibility beyond 2029 and targeted federal support are essential to restoring growth, attracting investment and retaining U.S. workers in the islands,” King-Hinds added.

Her new proposal set the labor stabilization program to end by Dec. 31, 2039, with an option for an additional 10-year extension "based on economic conditions, under the authority of the U.S. secretary of labor, subject to consultations with the CNMI governor."

It would also set a flexible limit of 15,000 CW-1 permits annually and dedicate a portion of the CW-1 cap for 3,000 construction workers.

The proposed CNMI Labor Stabilization Program would likewise repeal the “touchback” provision of the transitional worker program and remove the requirement for CW-1 workers to exit the CNMI for 30 days before their third renewal.

The proposal also seeks to streamline the application process by authorizing the CNMI  government to process temporary labor certifications on behalf of the U.S. Department of Labor, similar to the federal agency's arrangement with Guam.

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The proposed worker program would also replace the requirement for an annual prevailing wage survey with a biennial schedule.

Carlito Marquez, president of the United Filipino Organization, supports King-Hinds' proposal.

"The proposed concepts toward amending the CNMI immigration transition program are good for all CW-1 workers and businesses as well. It will lessen the burdens for both workers and the businesses,” Marquez said.

“There were a lot of family separations because of the creation of the final rule under the CNRA published on Sept. 7, 2011. This will benefit CNMI CW-1 workers if approved,” he added.

King-Hinds said she will welcome “all perspectives that will contribute to the development of a legislative proposal that is responsive to the needs of the CNMI community.”

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