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Chamber renews call for tiered wage system
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Posted on Mar 02 2006
The Saipan Chamber of Commerce has reaffirmed its position on the minimum wage issue, calling for the creation of a tiered compensation system in the Commonwealth.
Alex Sablan, chairman of the Chamber’s government relations committee, said the business group revisits the minimum wage issue each time a new set of officers takes office.
He added that the Chamber, upon discussion, had decided to keep its position that the local minimum wage should be raised, but it should be done gradually.
“The minimum wage needs to be raised to address the increased cost of living for citizens in the CNMI, but should be done by a government sanctioned Wage Review Board that brings together federal (in an advisory capacity only) and CNMI labor experts and representatives of various industries,” according to the Chamber.
The Wage Review Board would structure a staggered increase to build up to an island minimum wage, the group added.
Furthermore, the business organization said that various industries should review economic reports and indices that would best determine each industry’s ability to pay and come up with an industry-based minimum wage schedule.
“Benefits mandated by local labor law to nonresident employees should be reduced and ultimately eliminated once a CNMI minimum wage is reached at its highest level,” the Chamber added.
Sablan said in an interview that the group was opposed to instantly bringing the local minimum wage rate to the federal level, which is at $5.15-per hour.
“We don’t believe it should be $5.15. That would raise the cost of living exponentially,” he said.
He noted that a 1997 report had a recommended a minimum wage rate of $4.62 per hour. But he added that a new study should be done and that it should look at the CNMI’s economic situation in 2006 and beyond.
