LABOR and Immigration Secretary Joaquin A. Tenorio is in favor of a minimum wage increase provided “it is fair” and “based on the local economic condition.”
“I support that. I believe our workers deserve a higher pay but any action to that effect must be well-studied. We should make sure that it is fair and won’t hurt the economy,” Tenorio said in an interview.
He said the local minimum wage does not have to equal the federal rate which is $5.10 an hour.
“It should be based on the local economic condition because we’re in a different location. We have an entirely different situation here,” Tenorio said.
He said he is set to meet with Gov. Juan N. Babauta this weekend to discuss concerns surrounding the minimum wage issue, including the possible implementation of the American Samoan wage-tiered system.
Babauta, after a trip to Washington, D.C. last March, said he favored a gradual per industry salary hike.
In American Samoa, each industry has different minimum wage rate which depends on the sector’s growth and performance, the governor said.
Tenorio said he would also initiate a comprehensive study that would look into various issues involved in the implementation of minimum wage.
“It’s not a simple matter. It needs a thorough study before we can make a decision,” he said.
DOLI would seek input from other sectors such as the Saipan Chamber of Commerce, the garment industry as well as the hotel industry, which are opposed to any wage hike proposal.
Tenorio said his office would also monitor legislation that aims to offer “equitable wages” to resident and non-resident workers.
“Certainly, we would like to see something that’s equitable given our conditions here,” he said.
