The $50 fee increase will yield about $750,000 in additional annual income for Labor based on an estimated 15,000 foreign worker population.
“The recent increase in the fee for foreign worker applications is for the purpose of funding the new interactive Web site on which Labor publishes [job vacancy announcements],” said Labor Deputy Secretary Cinta M. Kaipat during a press conference yesterday morning.
“In addition, Labor has implemented a new software system for processing applications…. The cost of the new processing system is also rolled into the application fee. We have also spent money on employment services by augmenting our personnel resources to assist citizens find jobs. This is a critical function in the current difficult economic circumstances,” she added.
Employers were charged $275 per foreign worker before the fee was raised.
The new regulation was published in the Commonwealth Register to increase the fee to $350 by Nov. 1.
However, Labor only implemented the new fee on Wednesday afternoon, which surprised many businesses.
The change, however, does not cover fees paid by non-business employers who employ household helps.
Kaipat took responsibility for the confusion.
“We’re doing our best. There was no intent to try to mislead anybody,” she said.
Labor Director Barry Hischbein added, “When we discovered that there was a mistake, it’s our obligation to correct it.”
Kaipat said the CNMI government must do something to fund the department’s operations.
“The Labor Department cannot draw on commonwealth resources anymore. We have to fund our operations through fees,” she said.
