Yes to motive but no to timing

The movers and shakers in the Commonwealth’s business sector support and fully understand the reasoning behind the need to implement a tiered-wage system in the CNMI.

This was the general sentiment expressed by business sector leaders during a meeting yesterday with Gov. Juan N. Babauta and Washington Rep. Pete A. Tenorio at the Office of the Governor.

Hotel association president Ron Sablan reminded Babauta and Tenorio, however, that with the Commonwealth economy still reeling from the 9-11 attacks and the ensuing world economic crisis, now is not a good time to implement such a system that could possibly result in a minimum wage hike.

Instead, he recommended to the Governor and the Resident Representatives that what could be done is to start studying and planning for such a system, which could then be implemented “two or three years down the road.”

The meeting signaled a ratcheting up in Babauta and Tenorio’s campaign for a tiered-wage system in the Commonwealth, where they reiterated their previous statements in support of a system similar to the American Samoa model, saying this would provide stability to the economy, minimize dependence on nonresident workers, and convince the U.S. Congress that the Commonwealth is sincere in overhauling its labor and immigration policies, thus doing away with the ever-present threats of a federal takeover.

“That is really the bottom line why we are here today. We are committed first to bringing stability to the CNMI,” he said.

However, contractors association representative Richard Szumiel also questioned the applicability of the American Samoa model in the CNMI, to which the Governor responded that it is not necessary for the Commonwealth to ape the American Samoa system in toto.

“Let’s put aside the American Samoa model for now. I think that we can work on a system that would address our needs. We are different and we have different requirements. Our economy is also different. What we are saying is that, help us fashion a system that would be unique to us, taking into consideration our unique needs but ensuring that the system will be acceptable to the U.S. Congress,” said Babauta.

Saipan Chamber of Commerce president Richard Pierce appealed to Babauta that, in any discussion relating to the creation of a tiered-wage system in the Commonwealth, the business sector should be consulted and included, much like the role it played in the Special Industry Committee that was created by the previous Legislature to study the possible increase in minimum wage in the CNMI.

The current minimum wage in the Commonwealth is $3.05 an hour, which became effective July 1, 1996. The committee had recommended in October 2001 a $.22-cents increase in the minimum wage across all industries except in garment and construction industries.

In prior interviews, both Babauta and Tenorio had pushed for a tiered wage system—different minimum wage levels among different industries—that would be adopted also by the U.S. Congress, as a means to shield the Commonwealth from federal takeover threats and assure congressional members of the CNMI’s sincerity in reforming its labor and immigration policies.