U.S. congress urged to defer minimum wage hikes

Apr 30, 2008 (Asia Pulse Data Source via COMTEX) -- -- The U.S. Congress has been urged either to defer a 50-cent-per-hour rise in the minimum wages of theCommonwealth of Northern Marianas (CNMI) and American Samoa or to grant US$15-million in aid to each jurisdiction, reports Pacific Magazine.

Northern Marianas Gov. Benigno R. Fitial and American Samoa Rep. Eni Faleomavaega in a joint letter to U.S. senators said Congress should either hold off the next minimum wage hike or offset its expected adverse impact with financial aid.

Under the current federal law, wage hikes of 50 cents per hour for American Samoa and Northern Marianas would continue until wages reach the new federal level of US$7.25 per hour. The next increase of 50 cents per hour goes into effect on 25 May.

Mr Fitial and Mr Faleomavaega reiterated that the two economies cannot support additional costs when we are already in economic decline.

But the pair also proposed a backup plan which they urged Congress to consider if the lawmakers find a delay in the wage increases unacceptable. The proposed tradeoff is a US$30-million financial assistance to be included an emergency supplemental appropriation bill now being drafted in both houses of Congress.

Mr Fitial and Mr Faleomavaega said the money, to be shared by the Northern Marianas and American Samoa, would be spent on investments in critical areas that have the potential to bring multiplying economic benefits.

They identified the areas where the money could be spent: transportation projects, measures to bring down the cost of fuel and stabilise shipping, job retraining, emergency financial relief to affected employers, efficiency studies for local governments, and funding for essential public services.

In the Northern Marianas, temporary support could also be given to the declining tourism industry to help bring new money into the islands. The leaders said the appropriation will help the Northern Marianas and American Samoa deal with the immediate economic effects of the minimum wage while Congress studies what next step to take.

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