Teno renews plea on minimum wage

Gov. Pedro P. Tenorio has appealed anew to the U.S. Congress against extending federal minimum wage laws to the CNMI amid attempt by some Democrat members to pressure its Republican leadership to pass legislation.

“We continue to ask the U.S. Congress to take into consideration the CNMI’s economic situation since this will have a significant effect [on the islands],” he told reporters in an interview.

The brief statement was his reaction to the latest move by a group of Democrat lawmakers that has asked U.S. House Speaker J. Dennis Hastert (R-IL) to begin the process of federalizing minimum wage law in the Commonwealth.

The group has maintained the CNMI has been provided enough time and leeway to reach the federal minimum wage level for the past 14 years since officially joining the United States’ political family in 1986.

At present, minimum wage in the CNMI is $3.05 per hour, while the federal rate is $5.15 per hour. Most of nonresident workers on the islands are minimum wage earners.

Mr. Tenorio did not elaborate on what his administration plans to do in order to block this attempt, although he has recently agreed to hire lobbying services of Preston Gates to protect CNMI’s interests in Washington D.C.

The House of Representatives earlier has formally sought intervention of Mr. Hastert to halt the move, saying there has been no study made to assess impact of federal minimum wage to the islands.

House Speaker Benigno R. Fitial has stressed the move would affect the livelihood of the people of the Commonwealth, bankrupt the government and bring the islands back to federal subsidy and dole-outs.

Saipan Chamber of Commerce President Lynn Knight has also warned against the legislated increase in the minimum wage, saying it would force many of the businesses to shut down and lay off workers.

The local business community has repeatedly opposed any increase in minimum wage claiming that most of them are already paying close to, if not the $5.15 federal minimum wage because of subsidies they give on food, housing and transportation to their nonresident workers.

Several measures have been introduced in Congress seeking extension of the federal minimum wage to the CNMI, but none has yet gone on the floor for voting.