Local business group lobbies vs. wage hike

Pointing out the persistent instability of the Northern Marianas economy, a newly-established organization comprised mainly of indigenous businessmen has joined local efforts to block the proposed United States-wide adjustment of minimum wage.

The CNMI Indigenous Entrepreneurs, Incorporated raised its concerns on the anticipated adverse impacts of the proposed increase in minimum wage to business community in the Northern Marianas.

Businesses on the islands now suffer from slow return of investments due to changes in consumer spending habits spurred primarily by major decline in the visitor industry.

The newly chartered business organization, whose members consist of entrepreneurs of Northern Marianas descent, made its official stand on the minimum wage issue through a letter addressed to United States House Speaker J. Dennis Hastert.

“[W]e are deeply concerned about the minimum wage issue that is being considered by the U.S. Congress, which include the CNMI,” said organization president Pedro R. Guerrero in an October 23, 2000 letter to Mr. Hastert.

He acknowledged that the proposal would benefit more than 10 million workers across the mainland U.S. and that it may have too little effect on businesses there since they enjoy the country’s economic resilience.

However, inclusion of the CNMI in legislation that seeks to increase minimum wage throughout America and other insular areas was not a welcome development for the organization.

“We strongly object to include the CNMI in the proposed minimum wage increase that eventually within a short period of time will meet the federal minimum wage of $6.15 per hour,” said Mr. Guerrero.

While the mainland U.S. enjoys an unprecedented era of prosperity and the longest period of economic growth in the country’s history, Mr. Guerrero said the Northern Marianas currently experiences otherwise.

At present, the Commonwealth economy is at an all-time low in two decades that forced over 3,000 businesses, both locally- and foreign-owned, to close shop since the effects of the Asian financial crisis started fanning toward the islands.

“Believe it or not, we have not yet reached the bottom of the Marianas Trench in the Pacific Ocean, nor have seen any signs of economic comeback. This is our economic reality today,” the business leader told Mr. Hastert.

He pointed out that requiring CNMI businesses to adjust the current minimum wage to federal levels is like paving the easy road for their bankruptcy and closure.

“It is unfair for the people of the Northern Marianas to expect the minimum wage increase, knowing that the business community cannot afford to pay for it. This minimum wage increase will only aggravate and make our economic situation worst than what it is today,” Mr. Guerrero added.

He emphasized that making the federal minimum wage applicable to the islands and taking away the control of labor and immigration, as well as deny CNMI products duty free and quota-free treatment into the mainland U.S. is counter-productive to meeting the economic self-reliance and sufficiency of the Commonwealth.