What’s what
THE CNMI Labor secretary said it is unlikely that the U.S. Congress would act anytime soon on the repeal or modification of the “touchback” provision, which requires hundreds (thousands?) of CWs to “exit” the CNMI, all at the same time, for “at least 30 days” before their contracts could be considered for renewal. As any CW employer knows, when dealing with the federal bureaucracy, “30 days” could mean “six to eight months.”
Federal bureaucrats said “touchback” should “force” employers to hire U.S. workers. But the reason CWs were hired for certain jobs is because there are not enough U.S. workers for those jobs. Federal authorities should know that. They’re in charge of the CW hiring process.
The CNMI Labor secretary said U.S. Labor officials will want to know “what is the CNMI’s long-term strategy of replacing foreign workers with U.S. workers.”
She should ask them the same question. The U.S., which has a population of over 300 million, has so many training and apprenticeship programs at the federal and state levels, and has a dynamic private sector that pays high wage rates with plenty benefits. So why does the U.S. still lacks workers for certain jobs — the same jobs for which the CNMI has to hire CWs? And not only the U.S., but many other countries as well. Among them, Japan, South Korea, Canada, the U.K., Germany. Even China is reporting labor shortages. In Guam, employers are complaining about U.S. companies poaching workers from the island.
If possible, CNMI DOL should apply for a technical grant from the Interior Department to bring over U.S. Labor officials to the islands for a one- or two-week fact-finding trip. Introduce them to local employers and local HR managers. Arrange similar meetings with officials of PSS, NMC and NMTech. Provide them with the latest pertinent information, including from the Census and the GAO, and local historians such as Don Farrell. Bring them to Rota and Tinian, too.
Federal authorities should see for themselves the results of the rules they have concocted thousands of miles away for these tiny islands with a small and dwindling population, and a miniscule and shrinking economy.
What now
MANY employers now have to make potentially costly changes that could also inconvenience their customers. Resorting to remote work and/or automation may not be enough or possible for some businesses. Hotels, restaurants and other service-oriented businesses may find themselves in a difficult situation once the tourism industry recovers. The labor shortages in construction and healthcare are equally — if not more — problematic.
For its part, the CNMI government — the islands’ largest employer of local residents — should re-think its revenue projections for FY 2024. When the population decreases, so do the consumer and tax base.
Right now, several businesses are either shutting down or downsizing, and those that will remain open may raise prices to cover their costs. This, in turn, will further dampen consumption. Which will mean less revenue for an overspending government.
What’s next
FOR struggling employers who will have to grapple with a federally created labor shortage, another possible remedy — besides remote work and automation — is to recruit new CWs as early as possible to replace those who will have to “exit” the islands before they could be (fingers-crossed) renewed. But besides the unnecessary additional costs involved, there’s also the depletion of institutional knowledge whenever experienced workers leave a company. The likely result is a loss of productivity and efficiency, as well as a decrease in customer satisfaction.
However, these considerations mean nothing to government bureaucrats more interested in following the rules they created than in solving the problems that their rules are causing.
In the end, the “touchback” rule will accomplish nothing but additional costs and inconveniences to legitimate businesses, their employees, their customers and, eventually, the CNMI government, which will end up collecting less revenue. But apparently, “touchback” is politically popular.
Ultimately, in a free society, the decision of whether or not to take up a certain job is up to the individual, and not to faraway bureaucrats and politicians who want to solve a “problem” in a remote territory while doing nothing about the much larger and worsening problem in their own backyard.
