Garment industry not exempt from wage hike

THE garment industry is included in the industries that will have to raise the minimum wage, according to Gov. Juan N. Babauta and Senate President Paul A. Manglona.

In separate interviews on Friday, Babauta and Manglona said the garment industry should not be exempted from the planned tiered wage system patterned after American Samoa.

House Speaker Heinz S. Hofschneider, R-Saipan, in an earlier interview said the garment industry “also has to chip in.”

“Yes, (the garment industry) should be included. That’s the purpose of the tiered wage. They would have different wages based on the decision (of the Legislature),” Babauta said.

Manglona echoed Babauta’s position.

“The whole thing would still be discussed and eventually be decided when the Senate and the House of Representatives conduct sessions for the legislation on the minimum wage increase,” said Manglona, R-Rota.

The Special Industry Committee submitted a report to the Legislature on Oct. 12, 2001 recommending that industries raise the $3.05 hourly minimum wage by 22 cents with the exception of the garment and construction industries.

In the early 1990s, due to pressure from Washington, D.C. regarding local labor and immigration policies, the CNMI government mandated a gradual increase of the minimum wage until it reached federal level.

Like most CNMI labor and immigration reform measures, however, the wage increase was eventually repealed.

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