[Federal Register Volume 79, Number 106 (Tuesday, June 3, 2014)]
[Notices]
[Pages 31988-31990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-12607]
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DEPARTMENT OF LABOR
Office of the Assistant Secretary for Labor
Secretary of Labor Extends the Transition Period of the
Commonwealth of the Northern Mariana Islands--Only Transitional Worker
Program
AGENCY: Office of the Assistant Secretary for Labor, Department of
Labor.
ACTION: Notice of an extension of the transition period.
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SUMMARY: The Consolidated Natural Resources Act of 2008 (CNRA) extended
U.S. immigration laws to the Commonwealth of the Northern Mariana
Islands (CNMI), and authorized the Department of Homeland Security
(DHS) to create the CNMI-Only Transitional Worker (CW-1) program to
ensure adequate employment in the CNMI until the program is phased out
on December 31, 2014. The CNRA also requires the Secretary of Labor, in
consultation with the Secretary of Homeland Security, the Secretary of
Defense, the Secretary of the Interior, and the Governor of the CNMI,
to determine by July 4, 2014, whether an extension of up to five years
of the CW-1 program is necessary to ensure an adequate number of
workers will be available for legitimate businesses in the CNMI. Based
on the factors set out in the CNRA, the Secretary of Labor has made the
determination to extend the CW-1 program for five years.
DATES: This Notice is effective June 3, 2014.
FOR FURTHER INFORMATION CONTACT: For further information, contact James
Moore, Deputy Assistant Secretary for Policy, Office of the Assistant
Secretary for Policy, U.S. Department of Labor, 200 Constitution Avenue
NW., Room S-2312, Washington, DC 20210; Telephone (202) 693-5959.
SUPPLEMENTARY INFORMATION: Section 702(a) of the Consolidated Natural
Resources Act of 2008 (CNRA), Public Law 110-229, 122 Stat. 754 (May 8,
2008), extends the immigration laws of the United States to the
Commonwealth of the Northern Mariana Islands (CNMI). 48 U.S.C.
1806(a)(1). To minimize the potential adverse economic effects of
phasing out the CNMI-Only Transitional Worker (CW-1 for principal
workers and CW-2 for spouses and minor children) program, the CNRA
provides for a five-year transition period ending on December 31, 2014.
48 U.S.C. 1806(a)(2). However, the CNRA authorizes the Secretary of
Labor to extend the transitional worker program for up to five years
based on the labor needs of the CNMI to ensure that an adequate number
of workers are available for legitimate businesses. 48 U.S.C.
1806(d)(5). Nonimmigrant worker visa programs under the Immigration and
Nationality Act are not adequate substitutes for the CW-1 program
because the jobs that CNMI businesses fill with CW-1 workers are not
temporary or seasonal in nature and thus cannot be filled by H-2B
temporary non-agricultural workers; are not in a specialty occupation
suitable for H-1B temporary workers; and do not otherwise fit under one
of the other nonimmigrant programs (such as the H-2A program for
temporary agricultural workers, the O program for individuals of
extraordinary ability, the P program for artists and athletes, or the R
program for religious workers, etc.).
The CNRA requires the Secretary of Labor, in consultation with the
Secretary of Homeland Security, the Secretary of Defense, the Secretary
of the Interior, and the Governor of the CNMI, to ascertain the current
and anticipated labor needs of the CNMI before making a determination.
48 U.S.C. 1806(d)(5)(A). The Secretary of Labor's decision to extend
the CNMI-Only Transition Worker program must be made 180 days prior to
the expiration of the transition period, id., which is by July 4, 2014.
The CNRA stipulates that in making the determination of whether
foreign workers are necessary to ensure an adequate number of workers
in the CNMI, the Secretary of Labor may consider several factors. 48
U.S.C. 1806(d)(5)(C). The Secretary may consider: (1) government,
industry, or independent workforce studies reporting on the need, or
lack thereof,
[[Page 31989]]
for alien workers in the Commonwealth's businesses; (2) the
unemployment rate of U.S. citizen workers residing in the Commonwealth;
(3) the unemployment rate of aliens in the Commonwealth who have been
lawfully admitted for permanent residence; (4) the number of unemployed
alien workers in the Commonwealth; (5) any good faith efforts to
locate, educate, train, or otherwise prepare U.S. citizen residents,
lawful permanent residents, and unemployed alien workers already within
the Commonwealth, to assume those jobs; (6) any available evidence
tending to show that U.S. citizen residents, lawful permanent
residents, and unemployed alien workers already in the Commonwealth are
not willing to accept jobs of the type offered; (7) the extent to which
admittance of alien workers will affect the compensation, benefits, and
living standards of existing workers within those industries and other
industries authorized to employ alien workers; and (8) the prior use,
if any, of alien workers to fill those jobs, and whether the industry
requires alien workers to fill those jobs. Id.
Regarding the first factor, the Department of Labor (the
Department) reviewed and considered workforce studies that examined the
economic impact of alien workers on the CNMI economy and labor
market.\1\ A review of the workforce studies found that the majority of
the CNMI's current labor supply is provided by foreign workers. The
studies unanimously concluded that restrictions on the foreign labor
supply will exacerbate the CNMI's current economic problems and
restrain economic growth.
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\1\ These studies include U.S. Department of the Interior,
``Economic Impact of Federal Laws on the Commonwealth of the
Northern Mariana Islands,'' 2008; U.S. Department of the Interior,
``Report on the Alien Worker Population in the Commonwealth of the
Northern Mariana Islands,'' 2010; U.S. Government Accountability
Office, ``Commonwealth of the Northern Mariana Islands: Managing
Potential Economic Impact of Applying U.S. Immigration Law Requires
Coordinated Federal Decisions and Additional Data,'' GAO-08-791,
Aug. 2008; and U.S. Department of Homeland Security, ``Regulatory
Assessment for the Final Rule, Commonwealth of the Northern Mariana
Islands Transitional Worker Classification,'' 2011.
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The Department conducted a labor force analysis to determine the
unemployment rates of the populations identified in factors two through
four. According to the 2010 Island Areas Census, which contains the
most recent labor market data, the CNMI population was 53,883, with
24,168 U.S. citizens and 29,715 non-citizens. The total number of U.S.
citizens age 16 and over was 13,016. The Department's calculation,
using the 2010 Island Areas Census, found that 24 percent of U.S.
workers \2\ residing in the CNMI were unemployed. Regarding factors
three and four, due to the lack of data, the Department was not able to
measure the unemployment rate of workers who have been lawfully
admitted for permanent residence or the number of unemployed foreign
workers in the CNMI. Based on the CNMI Department of Finance tax data
for 2002-2012 and the 2010 Island Areas Census, the Department
concluded that there are an insufficient number of U.S. workers in the
CNMI to fill all of the jobs held by foreign workers. The total number
of unemployed U.S. workers in the CNMI in 2010 amounted to only about
20 percent of the 14,958 foreign workers. Even if all the U.S. workers
in the labor force were employed, more than 11,000 jobs would still
need to be filled by foreign workers.
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\2\ In this document, the term ``U.S. workers'' includes lawful
permanent residents and the term ``foreign workers'' does not.
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In regard to the fifth factor, we consulted with CNMI government
officials and other stakeholders, to obtain information related to
training, education, and other assistance provided to U.S. citizens and
lawful permanent residents. The Government of the CNMI shared with the
Department the good-faith efforts it has made and its continuing
efforts to locate, educate, and train U.S. citizens and lawful
permanent residents to assume jobs in the CNMI. They reported that they
continue to provide education and training to unemployed or
underemployed U.S. workers to help them become sufficiently qualified
to replace foreign workers. They developed high school career technical
education (CTE) curriculum that is responsive to the needs of employers
in the CNMI.
Concerning the sixth factor, officials from the CNMI government
reported that some U.S. citizens and lawful permanent residents are not
willing to accept certain jobs, including low-wage jobs or jobs with
few or no benefits. Our analysis of the CNMI Department of Finance tax
data for 2002-2012 found that foreign workers generally earn
significantly less than U.S. workers. In 2011, the average annual wage
for U.S. workers was $15,737 compared to $10,280 for foreign workers.
On average, foreign workers are paid $5,457 (or 35 percent) less than
U.S. workers.
In regard to the seventh factor, the Department was unable to
assess the extent to which the admission of foreign workers affects the
compensation, benefits, and living standards of existing workers in
industries authorized to employ foreign workers due to limitations in
current data. To address the seventh factor, the Department conducted
an analysis similar to the approach used by GAO in its 2008 report to
measure the potential economic impact of applying U.S. immigration law
in the CNMI.
To address the eighth factor, we consulted with CNMI government
officials and other stakeholders to determine if there is a need for
foreign workers to fill specific industry jobs. CNMI government
officials reported that legitimate businesses in the CNMI have
difficulty finding qualified applicants for skilled jobs who are U.S.
citizens and lawful permanent residents.
Finally, the Department engaged in the interagency and
intergovernmental consultation process, as contemplated by the statute.
48 U.S.C. 1806(d)(5)(A). As part of this process, the Department
conducted a series of meetings with DHS, the Department of Defense, the
Department of the Interior, and CNMI elected officials, including the
Governor, during which the participants examined the statutory criteria
to assess whether the Department should extend the transition period.
None of the participants in those consultations registered objections
to the grant of an extension for up to five years to ensure that an
adequate number of workers are available for legitimate businesses in
the CNMI.
After reviewing existing studies, consulting with DHS, the
Department of Defense, the Department of the Interior, and CNMI elected
officials, including the Governor, and conducting a quantitative
analysis of relevant data, the Secretary of Labor has concluded that
there is an insufficient number of U.S. workers to meet CNMI
businesses' current needs, and has further determined that a five year
extension of the CW-1 program is warranted. A five-year extension will
allow CNMI businesses to continue to hire CW-1 workers to meet their
current and future needs for foreign workers.
Because the CNRA allows the Secretary of Labor to provide for an
additional extension period of up to five years, the Department will
continue to monitor and assess the current and anticipated labor needs
of the CNMI to ensure that there are an adequate number of workers for
CNMI's legitimate businesses. 48 U.S.C. 1806(d)(5)(C). In particular,
we will continue to assess any good faith efforts to locate, educate,
train, or otherwise prepare U.S. citizens, lawful permanent residents
and unemployed foreign workers already in the CNMI to assume
[[Page 31990]]
jobs in legitimate businesses. 48 U.S.C. 1806(d)(5)(C)(v). In order for
us to properly assess the CNMI's workforce in the future, we request
that the CNMI government provide updates to the Department on a yearly
basis about its good faith efforts to locate, educate, train, or
otherwise prepare U.S. citizens, lawful permanent residents, and
unemployed alien workers already in the CNMI.
Section 701 of the CNRA states it is the intent of the Congress to
minimize potential adverse economic and fiscal effects of phasing-out
CNMI's nonresident contract worker program and to maximize the CNMI's
potential for future economic and business growth by, among other
things, assuring that foreign workers are protected from the potential
for abuse and exploitation. Pub. L. 110-229, Sec. 701(a)(1)(E), 48
U.S.C. 1806 note. The Department emphasizes the importance of
Congress's intent in this regard, and further notes that this notice
should not be construed to alter or amend the continuing obligations of
CNMI employers to adhere to and comply with applicable civil rights,
labor and workplace safety laws. Employers in CNMI remain subject to
the array of federal laws that, among others, ensure and protect the
rights of workers to a workplace based on fair treatment, and free of
unlawful discrimination and hazards to safety and health. Those and
other workplace rights will continue to be applied forcefully by the
Department and other federal agencies with jurisdiction to administer
and enforce federal worker protection laws.
Signed at Washington, DC, this 27 of May, 2014.
Thomas E. Perez,
Secretary of Labor.
[FR Doc. 2014-12607 Filed 6-2-14; 8:45 am]
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