Chamber believes working with Legislature is key

Palacios

Raising the minimum wage will help the CNMI economy and improve the overall standing of the lives of its residents and the Saipan Chamber of Commerce believes that compliance with what is mandated is imperative, but it also believes that employee morale would further improve if working with the Legislature would result in higher wages.

“We have seen wage increases due to the market. As our economy continues to grow and develop, wages will continue to increase,” said Chamber president Velma Palacios.

“However, the Chamber believes strongly that our islands need to work in a unified effort to have the best chance at legislation which will bring a long-term resolution to our workforce issue,” she added.

Palacios pointed out that wages in the CNMI have increased for two reasons: First, because of mandated minimum wage increases, and second, because of market forces.

Beginning in 2007, the federal government imposed a new law to bring the CNMI’s minimum wage of $3.05 to the federal level of $7.25.

Under the current law, the next minimum wage increase will occur on Sept. 30, 2017, with the new minimum wage at $7.05.

While wage increases may have positive intentions, they also cause small businesses on island to struggle, she said. “There is no doubt that wage increases are difficult for businesses to absorb, particularly smaller businesses with many workers at lower wage levels.”

“Congress believes that our island is dependent on cheap labor,” Palacios said, “and these statistics, the recent Prevailing Wages and Workforce Assessment Study, show that is no longer the case. Wages have increased and U.S.-eligible workers who are ready and willing to work are able to find jobs.”

“As we have seen with our current economy, most employers are now paying wages much higher than the minimum wage,” Palacios added.

She also emphasized that market forces play a part in boosting wages.

“There are many job opportunities for employees. Individual employee increases were made by business owners in the efforts to retain valued employees as other businesses sought to obtain additional workers,” she said.

Palacios added that to sustain the economy, determining wage increase must be a joint effort between the government and the business sector to boost economic growth and available money that would benefit the workforce.

Palacios said, “Comments would be solicited from the [Saipan] Chamber on legislation introduced, which includes wage increases. The Chamber also participates in Strategic Economic Development Council meetings and collaborates with [the Hotel Association of the Northern Mariana Islands], [Society for Human Resources Management], and [Northern Marianas Business Alliance Corp.] on community issues.”