Vol. 34 No.256
       ©2007 Marianas Variety
Tuesday, March 13, 2007 www.mvariety.com
Serving the CNMI for 34 years
 

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Administration: Speaker’s proposal unfair to Chinese workers

By Gemma Q. Casas
Variety News Staff

THE Fitial administration has yet to decide if it will support Speaker Oscar M. Babauta’s proposal to explore the possibility of recovering millions of dollars that migrant workers in the CNMI have contributed to the U.S. Social Security system saying it may be unfair to thousands of Chinese factory workers.
Press Secretary Charles P. Reyes Jr. said the administration is concerned about the proposal’s “inherent unfairness.”
“The administration has not taken an official position on the House speaker’s suggestion on the Social Security withholdings of Chinese workers who may never see any benefits,” said Reyes in an e-mail.
“However, we are concerned about the inherent unfairness involved. The workers have worked hard for their money, and a good portion of their earnings was taken by the Social Security (Administration),” he added.
Reyes said although there is no legal study to support the CNMI’s position should it claim the migrant workers’ Social Security contributions, the idea can be discussed with the federal government.
“No legal study is underway, but this is something that can be addressed with the U.S. government, not only by our government but also by the governments of nonresident workers in the CNMI,” he said.
The Federal Insurance Contributions Act, or FICA, requires migrant workers in the CNMI, except those from the Philippines and South Korea, to contribute 7.65 percent of their wages every pay period to Social Security.
Employers of migrant workers match their contributions.
Babauta said the migrant workers, particularly the Chinese, have contributed millions of dollars to the U.S. government’s retirement program but will be able to benefit unless they contribute for at least 10 years, among other requirements.
“When the workers leave their factory jobs, they may never enjoy the benefits of their prior contributions,” he said.