A wage hike, of course
PROPONENTS of the House wage-hike measure, H.B. 22-98, are concerned about the rising cost of living in the CNMI. Hence, they want a higher minimum wage rate and more legal protections for workers.
These are all good things. To ensure that the legislation would achieve its goals, lawmakers should also seek the comments of those familiar with the actual results of similar wage-hike measures in the past. We’re referring to the workers’ employers — businesses, especially small ones.
Lawmakers, moreover, should see to it that the bill reflects the islands’ current economic reality. They may want to remember that several years ago, the federally mandated, gradual wage hike law applied to the CNMI had to be suspended at least twice because of the dismal state of the local economy. At the time, local businesses were struggling. To stay afloat and to comply with the federal wage-hike mandate, they had to reduce their employees’ work hours and/or benefits. And those were the lucky ones. Other workers lost their jobs.
What truly improved the workers’ livelihood was economic recovery: an increase in tourism arrivals and the entry of new investors. Work hours and benefits were restored, salaries were increased, new jobs were created.
But then Yutu and Covid-19 happened.
The government, of course, can always raise the hourly wage rate of workers. But the government should also see to it that employers can afford the additional costs of doing business. Otherwise, the supposed beneficiaries of the government’s generosity — the workers — may end up with a pay cut or worse.
Check them out
LAWMAKERS who want to help workers should look into the following online Foundation for Economic Education articles pertaining to minimum-wage legislation:
California Town Sees Businesses Vanish Following Minimum Wage Hike
Ontario’s Minimum Wage Hike Has Been Disastrous, Especially for Disabled Workers
4 Ways Employers Respond to Minimum Wage Laws (Besides Laying Off Workers)
How a Minimum Wage Hike Wiped Out 40% of Venezuela’s Stores
Jerry Brown: “Economically, the Minimum Wage May Not Make Sense”
Harvard Business Review: Minimum Wage Hikes Led to Lower Worker Compensation, New Research Shows
Regarding the impeachment soap opera
CLEARLY frustrated with some of their colleagues who disagree with them, certain lawmakers have declared that the Legislature must set a “good example” for “future generations.” They’re referring to the ongoing impeachment proceedings (a.k.a. slow motion train wreck).
But worry not lawmakers. Thanks to your misadventures on the hill, future politicians are learning the following valuable lessons:
Avoid getting blindsided by your opponents.
Never assume they’ll roll over and play dead.
You may believe you’re delivering an impassioned, from-the-heart speech that can and will change minds. But for others, you may come across as an exasperating, broken-record sermonizer.
When impeaching a governor, make sure you have a super majority in the House and the Senate.
Lastly, when everything else fails, there’s always an election.
