NCL America, which has been challenged by staff turnover on its U.S.-flagged cruise ships in Hawai'i, now has more flexibility in hiring noncitizen workers.

NCL America has been operating under the federal requirement that at least 75 percent of crew on a U.S.-flag ship be U.S. citizens, with the remaining 25 percent permanent U.S. residents or green-card holders.

A provision in a federal defense authorization bill signed into law last month allows other visa holders as well as green-card holders to make up that 25 percent. That gives NCL, which sails three U.S.-flagged cruise ships around the Islands, a bigger pool of noncitizen workers to hire from.

"What it will help with is allowing us to bring experienced crew from the international ships as well as to stabilize the workforce and reduce the turnover," said Robert Kritzman, executive vice president and managing director of NCL America's Hawai'i operations.

Kritzman said in August that about 8 percent of 4,000 crew members for the three ships here were green-card holders. With the new law, the percentage of noncitizen crew will increase, he said yesterday. NCL said it will work closely with the U.S. Coast Guard to implement the law as quickly as possible.

NCL and the Seafarers International Union proposed the idea to U.S. Sen. Daniel K. Inouye, who shepherded the legislation through, said Jennifer Sabas, Inouye's chief of staff.

"It just provides flexibility for them so they can make sure that they're fully crewed, which is an ongoing issue for them," she said. She noted that the provision doesn't change the 25 percent cap on noncitizen workers aboard the U.S.-flag ships.

The new law won't affect any crew currently working on the U.S.-flagged ships, NCL said in a statement.

"NCL America remains committed to employing the best American workers for its ships and will continue to recruit employees throughout the United States for its U.S.-flag operations," the company said.

Recruiting and retaining workers — especially U.S. citizens — has been a challenge for NCL America. The federal exemption allowing NCL to sail its foreign-built ships in Hawai'i without stopping at a foreign port came with the requirement that it hire U.S. workers and follow U.S. labor laws, and the company has found it difficult to find American workers willing to work on a ship for months at a time. NCL reported in August that only about 10 percent of onboard staff is from Hawai'i.

Kritzman would not disclose the crew's turnover rate, but said it's decreasing and that it's consistent with the leisure industry.

The new law allows experienced seafarers with proper visas and U.S. Coast Guard merchant mariner documents to be included among the 25 percent of noncitizens working aboard U.S.-flag ships. These visa-holding employees, who will undergo background checks by the U.S. State Department and the U.S. Coast Guard, may work aboard the U.S. flag ships for up to three years and will only be allowed to work in the hotel department of the ships, NCL said.

Kritzman added that visa holders hired to work on NCL's U.S.-flag ships will be covered by collective bargaining agreements and thus will receive wages and benefits equivalent to American crew in the same positions.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com.