Focus on Education Why the U.S. will never be a major source of labor?

Some members of the U.S. Congress are under the impression that an increase in the minimum wage from $3.05 per hour to the current U.S. level of $5.25 or higher would stimulate an influx of mainland citizens to the CNMI to permanently replace non-resident workers. I asked my friend Bill Stewart this question: Would there be an influx of workers from the mainland should the wages be raised? Here is his reply.

“I think not. The fact is that some U.S. citizens do come to the islands to work-but a great many do not remain. Many people from large metropolitan areas on the US mainland and elsewhere do move to the islands for employment reasons. However they find adjustment difficult and do not remain long after their ‘initial’ enthusiasm wears off.

“Usually disenchantment of one spouse or the other is likely to result from one or more of the following reasons: high cost of living compared with the US- particularly for rent, utilities and food; limited and expensive supply of fresh vegetables; perceived limited medical facilities or educational opportunities; inability to adapt to a different environment; low wages and salaries compared with the mainland for both skilled and unskilled workers; limited employment opportunities for a spouse; the expense of moving household effects vast distances and the cost of reestablishing one’s household; and the expense of returning for frequent visits to family members.

“Opportunities for professional growth are limited, as are cultural activities. The climate is hot and humid. There is no scheduled public transportation. In some areas there still are water shortages. And in several cases the inability to own their own home in fee simple.

“The rebate on the NM Territorial Tax is not, in my opinion, the lucrative incentive for the average wage earner that many seem to think it is. For the average wage earner, the rebate, which can range from 50 to 90 percent of the tax paid, hardly covers the added cost of living in the CNMI for the non-local individual. If you doubt this-ask any “off island” US citizen employed as a contract teacher, health provider or middle manager.

“The commonwealth at the present time is one of the most expensive areas under the American flag in which to live and will remain so because we are subject to inflationary pressures from both of our primary supply sources in Japan and the United States plus the added cost of shipping and the effects of typhoons and food spoilage as a result of power outrages.

“The above are some of the reasons people leave the islands after a relatively short period and return to the US mainland with the result that the US mainland does not appear to be the source or solution, for the island’s work force that one might assume.

It has been primarily the Philippines to which island employers have usually turned to. Filipino people assimilate well into island society by virtue of a common religion, the English language, and in many cases they posses a similar island heritage.”
We have to respect and consider carefully the above observations as they are made from a man who has spent 30 years in the area and has studied intensely all aspects of labor, economics and social problems that drive the CNMI.

We are caught in a dilemma. A large labor force is vital if we are to expand our economy. Our small local labor force must become skilled employees supplemented with non-resident workers to compliment the work force. This is reality so let’s act on it. The US is not, and will never be, a major source of labor.

Strictly a personal view. Anthony Pellegrino writes every Monday and Tuesday. Mr. Pellegrino can be reached at tonypell@saipan.com