By Moneth G. Deposa
Variety News Staff

THE Strategic Economic Development Council, a group of local businesspersons, wants the garment industry exempted from the implementation of the federal minimum wage hike.
This is also the position of Gov. Benigno R. Fitial and the leadership of the Legislature.
“With regard to apparel manufacturing, due to increasing foreign competition with lower costs of doing business, it was the consensus of the group that the Saipan apparel industry may have only two years left to operate at the current labor rate,” the SEDC said.
It recommended that no minimum wage increase be implemented for the manufacturing industry at this time, saying any increase for manufacturing should be made by a wage review board following a thorough review of the general impact on employment and the economy, as well as the loss of the industry.
The SEDC said the CNMI should also implement a contract for an independent study of the local economy that will provide information on which to base decisions on the issue of wages.
After a review of the economic study, the CNMI minimum wage may be raised up to 50 cents per hour, with gradual increases thereafter, “if the board finds that the CNMI economy can sustain such increases,” the SEDC said.
In their letter to the governor, Speaker Oscar M. Babauta, Covenant-Saipan, and Senate President Joseph M. Mendiola, Covenant-Tinian, echoed the SEDC’s position.
“It is our joint leadership’s position that the apparel industry be exempted from any of the planned wage increases, to accord them some competitive edge in doing business due to stiff foreign competition in the apparel industry,” they said, adding the CNMI also needs to immediately establish a wage board to engage in a non-partisan study on the local economy.
They said they will push two pending bills that aim to “jumpstart fresh economic activity” in the CNMI.
House Bill 15-166, or the Revised Wage Structure Act, will increase the local minimum wage to $5 per hour while House Bill 15-206 will implement a tax incentive program.
In a separate e-mail, Press Secretary Charles P. Reyes Jr. said “although there is a clear consensus that the CNMI manufacturing industry is dying, and that it may well die within two years’ time, the administration does not support the acceleration of the death of the industry. In this case, we do not believe in euthanasia, or assisted economic suicide, for an industry that has long supported the CNMI economy.”
Reyes said they want to derive as much economic benefit from the industry for as long as possible.