Group: Minimum wage hike a must

Although seemingly untimely in view of the current economic crisis, a local group of professionals still believes that raising the minimum wage of $3.05 an hour to reach the federal level of $5.15 per hour should now be implemented in the Commonwealth.

The Enterprise Group, in its latest presentation paper, described the CNMI’s wage level as “below the federal poverty guideline.”

The group, led by distinguished members of the local community, said there are a number of reasons that justify a review and consideration of the CNMI minimum wage laws by elected leaders.

The first reason is to provide a decent living wage, it said.

“There is no question whatsoever that the present CNMI minimum wage of $3.05 an hour simply cannot support the livelihood of a wage earner,” said the group, citing that it translates to a gross salary of $24.40 a day or $6,344 a year.

“This sum could hardly feed a single person, let alone a family of four. Such a wage is clearly below the federal poverty guideline,” the group said.

It also cited the following justifications:

– to counter high unemployment rate among local residents. It said that when local residents cannot find work in the government, most prefer to remain unemployed rather than work for the private sector, because they get more in federal entitlements such as food stamps.

– To wean the government out of the employment business.

– To begin to reduce the huge disparity in the population of the CNM between CNMI residents and guest workers. For many years now, there are more guests workers and their families in the CNMI than there are local residents.

– For the government to once and for all begin a serious and earnest effort at training local residents to acquire skills needed by the private sector.

In its proposal, the group suggested that the minimum wage be increased incrementally over three years: an increase of 55 cents by Jan. 1, 2007; an additional $55 cents by Jan. 1, 2008, and $1 by Jan. 1, 2009.

When reached, Saipan Chamber of Commerce president Charles V. Cepeda said other groups could cite as many reasons as they can against the wage hike.

He said that what is needed is a new comprehensive study.

The Enterprise Group consists of businessman Norman T. Tenorio, Jose C. Ayuyu, former Commonwealth Ports Authority executive director Carlos H. Salas, former lieutenant governor and justice Jesus C. Borja, former college president Agnes McPhetres, college president Antonio Deleon Guerrero, businesswoman Brenda Y. Tenorio, former congresswoman Ana S. Teregeyo, former justice Ed Manibusan, businessman Eric Plinske, and former chief justice Jose S. Dela Cruz.