By Zaldy Dandan – Variety Editor
Stubborn facts
AS she rolls out a proposed measure called the Northern Mariana Islands Labor Stabilization Act, the CNMI’s delegate is seeking comments, feedback, and recommendations from other Commonwealth leaders and community members. Her legislation aims to “move away from a short-term transition model and toward a framework that reflects the CNMI’s long-term workforce needs.”
In short, the bill would not simply kick the can down the road. Instead, it acknowledges the stark realities of a small, struggling economy in a remote island chain with a small — and dwindling — population.
There are not enough U.S.-qualified workers for certain jobs. Since the Japanese administration of the islands, there has never been a time when the Northern Marianas did not hire foreign workers for certain positions. The local population is too small (about 17,000), and we have a minuscule economy that cannot possibly compete with the United States for a limited number of qualified U.S. workers in certain professions.
Federal authorities themselves do not expect the CNMI to rely solely on U.S. workers within 10 or even 20 years. In the 1990s, CNMI economist Bill Stewart estimated that the local population would not reach a size sufficient to provide 25,000 workers until around the year 2080. And that assumes those U.S. workers would choose careers here rather than elsewhere in their large and prosperous nation.
Over the years, many young local men and women have obtained college diplomas, yet we are always surprised to find ourselves short of construction workers, hotel housekeepers, caregivers, and other workers in non-degree occupations. This persistent labor shortage, in any case, is not unique to the CNMI. The United States, Japan, and other developed nations with far larger populations also rely on foreign workers, particularly in construction, caregiving, farming, the trades, and other service-sector occupations. Those nations also pay much higher wage rates.
In the CNMI, not all of us apparently are aware that the federal minimum wage has been fully applicable since 2018, and that much higher prevailing wage rates must be paid by employers of CWs. (A full list of these rates is available on the U.S. Department of Labor website.)
Someone recently pointed out that the CNMI “is a U.S. Commonwealth — not a discount labor outlet.” True enough. American Samoa holds that dubious distinction. In American Samoa, minimum wages vary by industry — $6.70 per hour for construction, $6.36 for fish canning and processing, and $6.20 for retailing and wholesaling. Under federal law, those rates are scheduled to rise by 40 cents every three years until they reach the standard federal minimum wage of $7.25 per hour. Current estimates suggest that some industries may not reach that level until about 2036.
NMI needs a better federal workforce law
IN the CNMI, the current CW law has already met its main objectives. Today, about 68% of the CNMI workforce are U.S. workers, and the law prioritizes their hiring. A portion of CW fees goes to training programs for local residents, and companies that hire CWs must employ a certain number of U.S.-qualified workers. Employers cannot hire a CW if a qualified U.S. worker has applied for that job. The CW program is federal, subject to federal rules, and overseen by federal authorities.
The expiration of the CW law in 2029 will not end the hiring of foreign workers. It will simply force employers to rely on H-visa programs designed for the world’s largest economy — a system many U.S. employers consider inefficient and detrimental to economic growth, innovation, and competitiveness.
Businesses need workers to operate. They are the foundation of an economy that generates the revenue funding the government’s (predominantly local) workforce, critical public services —public health, public safety, and education — as well as cultural preservation programs and activities. The economy, in turn, makes it possible to create more jobs for local residents and allows them to remain in the CNMI rather than relocate to the States.
The main reason many local residents are leaving is the weak economy, which will not improve if businesses cannot access the workers they need.
The task before CNMI leadership — and it is a task they have now undertaken — is to explain the local economic, geographic, and demographic realities, backed by data and other facts, to federal lawmakers and policymakers. They, in turn, must craft a new CNMI workforce law that reflects these local realities, supports economic recovery, and benefits the U.S. citizens of this Commonwealth.
Sadly, discussions regarding the workforce have not progressed much since the TT days. They remain ill-informed or misinformed. Demagoguery is still the weapon of choice, and arguments often boil down to zero-sum thinking and accusations of being anti-local or pro-foreign. Some portray advocates for a new workforce law as “anti-U.S. worker” or “anti-wage increase.” The truth is the opposite: those who block the measure are the ones endangering local workers’ livelihoods and driving them off their islands.
Zaldy Dandan is the recipient of the NMI Society of Professional Journalists’ Best in Editorial Writing Award and the NMI Humanities Award for Outstanding Contributions to Journalism. His four books are available on amazon.com/.
