SHRM, local employers brace for 2029 CW-1 Program expiration

5/8/2025—As the 2029 expiration of the CNMI-Only Transitional Worker Program looms, the CNMI Chapter of the Society for Human Resource Management and local employers are ramping up efforts to strengthen the local workforce and reduce reliance on foreign labor.

SHRM has launched a series of initiatives, including general membership meetings featuring expert panels, workforce planning discussions, and partnerships with government agencies and legal professionals. The organization emphasized that while an extension of the CW program—advocated by Delegate Kimberlyn King-Hinds—could provide much-needed economic stability, the CNMI must use any additional time to develop a sustainable long-term workforce strategy.

“Given the current economic landscape and the critical role of the CW-1 program in sustaining business operations, SHRM acknowledges that an extension would provide much-needed stability for employers and employees alike. However, while we support measures that allow businesses to maintain continuity, we also recognize the importance of using this time effectively to develop a structured and sustainable transition plan. If an extension is granted, it should not only extend the program’s timeline but also serve as an opportunity for the CNMI government, employers, and stakeholders to collaborate on a viable workforce strategy that reduces long-term reliance on foreign labor while ensuring businesses have access to the talent they need,” said SHRM CNMI president Roman Tudela said in a statement.

Key issues highlighted by SHRM CNMI include the unpredictability of the CW-1 application cycle, the hardships caused by the program’s "touchback" rule, and the need to adjust the CW cap based on the CNMI’s real labor market needs. The group also advocated for better communication from federal agencies, including the establishment of a USCIS regional office in the CNMI.

“As the expiration of the CNMI-Only Transitional Worker Program approaches, SHRM CNMI is committed to equipping our members with the knowledge, resources, and strategies necessary to navigate this critical transition. Our general membership meetings are curated to feature expert discussions, policy updates, and best practices that address workforce planning beyond 2029,” said Tudela.

He added that the group is actively fostering partnerships with legal professionals, government agencies—both regulatory and non-regulatory—and industry leaders to provide insights on compliance, alternative workforce solutions, and potential policy advocacy. 

“Beyond mitigating immediate concerns, we are also focused on long-term solutions, such as promoting apprenticeship programs and workforce development initiatives that can help sustain the CNMI’s labor force in a post-CW era.”

Tudela said of the key challenges SHRM CNMI observed with the current CW program is the lack of predictability in the application cycle, adding that processing timelines vary significantly from year to year, leading to inconsistent outcomes for employers and making it difficult for businesses to plan their staffing and recruitment strategies effectively. 

“If an extension is approved, we strongly advocate for a thorough review of the application process to identify and address bottlenecks that hinder efficiency. Predictable and timely processing is essential to ensuring that businesses can operate without unnecessary disruptions.”

He also advocated for a thorough reassessment of the touchback rule, which requires CW-1 visa holders to leave the CNMI for at least 30 days after reaching their maximum stay of two consecutive visa renewals. 

“While the rule is clear in its intent, in practice, many employers and employees face extended periods of uncertainty, often waiting six to eight months for updates. This prolonged process severely impacts businesses’ ability to plan for workforce stability, while also causing undue hardship for employees and their families, disrupting income continuity and children’s education. If the program is extended or modified, it is critical that this rule be reassessed to ensure it does not create unintended economic and social burdens.”

In addition to improving efficiency, SHRM CNMI believes it is critical to reassess the CW visa cap to reflect the CNMI’s actual workforce composition, Tudela argued.

“Given that a significant portion of our labor market consists of foreign workers, the cap should be adjusted based on real labor market needs rather than being set arbitrarily by the Department of Homeland Security. The CNMI should have a formal role in recommending cap numbers, ensuring that policies align with economic realities rather than one-size-fits-all federal determinations.”

Furthermore, as an economy largely driven by small businesses, Tudela said the CNMI requires a workforce system that accommodates the unique needs of our employers. 

“The current structure of the CW program does not fully support the realities of our business landscape, and without meaningful adjustments, extending the program alone will not create sustainable change. Through our engagement with members, we’ve consistently heard concerns about delays in notices and a lack of clear communication from federal agencies. To address this, SHRM advocates for the establishment of a USCIS regional office or the assignment of a dedicated representative closer to our region. This would facilitate more timely updates, reduce administrative bottlenecks, and help employers minimize employment gaps.”

Businesses across the CNMI are already preparing for the end of the CW program. Claudine Camacho, HR specialist at Herman’s Modern Bakery—a Saipan institution operating for more than 80 years—said the bakery is prioritizing local hiring.

“We want to make sure that our local workforce, we have many up-and-coming local students and workforce that we would like to assist first and foremost,” Camacho said. “Of course, with the geopolitics going on right now, it’s also a reason [to prepare].”

At the Crowne Plaza Resort & Spa Saipan, Frances Salas, director of Human Resources, said they are actively recruiting for positions locally and through their broader InterContinental Hotels Group network, with openings listed at ihgcareers.com.

“We're looking to fill those gaps now,” Salas said. “A lot of our positions are filled by the local workforce, but we are always preparing, especially in critical areas like our engineering team.”

While both businesses expressed optimism about building a stronger local workforce, concerns remain over potential disruptions if the CW-1 program ends without a viable alternative in place.

Tudela urged HR professionals and employers to stay proactive: “The year 2029 is fast approaching, and preparing for this transition must be a collective effort. We remain steadfast in our commitment to serving as a trusted resource and advocate for our HR community. We encourage our members to take a proactive approach—stay informed, participate in discussions, and explore workforce planning strategies now rather than later.”

He also reiterated SHRM CNMI’s commitment to supporting HR professionals and employers through the transition, pledging to continue amplifying member voices, advocating for policy solutions, and providing vital resources in the coming years.

“No matter the outcome, we are dedicated to ensuring that HR professionals and employers have the tools, guidance, and support needed to navigate the road ahead,” Tudela emphasized.

By Mark Rabago