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Governor reiterates stance vs wage hike
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Posted on May 24 2006
“Any person who understands economics will strongly agree that raising the minimum wage in the CNMI at this time will hurt businesses and the economy.”
Thus said Gov. Benigno R. Fitial on Tuesday, reiterating to reporters that he does not support any increase in the minimum wage at this time due to the critical state of the local economy.
“Even the Enterprise [a group of local business and community leaders] understands that,” said Fitial.
The Enterprise Group, in its latest paper, had called for the need to increase the minimum wage, saying that raising it from $3.05 an hour to the federal level of $5.15 per hour should now be implemented in the Commonwealth. It described the CNMI’s wage level as “below the federal poverty guideline.”
Fitial, however, said that the best way to address the minimum wage issue is to entice investors who are willing to pay their workers the U.S. minimum wage level.
“That’s why I am enticing call centers to set up businesses here in the CNMI because these are the kinds of companies that will pay the U.S. minimum wage,” said the governor.
Press secretary Charles Reyes also pointed out the inflationary spiral that could be triggered by any increase in the islands’ minimum wage rate.
There is currently a bill pending in the Legislature, House Bill 15-100, which seeks to increase to $4 per hour the minimum wage rate for most CNMI workers.
Workers in the garment industry would be exempted from the raise. They would continue to be covered by the current minimum wage rate of $3.05 per hour.
The bill also sets an overtime rate of $2 per hour for workers in exempt categories, which include persons employed by his son, daughter, spouse, or parents; executives, administrative or professionals; fishermen; seamen; taxi or bus drivers; golf caddies; students employed between semesters during holidays or vacations; farmers; or domestics.
Currently, workers in exempt categories are paid at least $300 per month. The overtime rate proposed by the bill would apply for work performed in excess of 72 hours per week.
H.B. 15-100 also seeks to cut benefits currently enjoyed by nonresident workers.
