If the bill becomes law, GAO must come up with a report by April 15 — which the Fitial administration believe would be crucial to its position to postpone the latest 50-cent wage increase this year in the CNMI.
By law, the CNMI and American Samoa must increase their minimum wage by 50 cents every year until 2015 to make them at par with the federal hourly wage rate of $7.25.
The CNMI’s current wage rate of $4.05 an hour should be increased to $4.55 this year under U.S. Public Law 110-28.
The Fitial administration has asked the U.S. Congress to defer the yearly mandatory wage hike but its request was rejected.
Press Secretary Charles P. Reyes Jr. said Gov. Benigno R. Fitial believes that struggling local businesses won’t be able to cope with another wage hike.
“The administration supports a minimum wage rate that our struggling local businesses can actually afford to pay and one that will maximize employment and minimize unemployment based on sound economics and prevailing market forces,” Reyes said in a statement to the Variety.
“We believe that the federal minimum wage rate should be guided by an objective and informed economic study by the GAO or the Labor Department,” he added.
Congressman Eni Faleomavaega, D-A.S, Sens. Daniel Inouye, D-Hi., Daniel Akaka, D-Hi., Jeff Bingaman, D-N.M., and Lisa Murkowski, R-Ak., added the language to the stimulus bill which has been passed by the U.S. Senate with amendments.
This means that the bill must still be approved by the U.S. House before it can be sent to President Obama for his signature.
“I especially want to thank my good friend Congressman Faleomavaega, who took it upon himself to successfully champion the American Samoa and CNMI language in the U.S. Senate bill. In the years that the CNMI did not have a member of Congress, Eni was always a friend to the CNMI and he continues to keep the CNMI in mind when it matters most,” said Fitial in a statement.
He said the report is crucial to the CNMI’s economic future, particularly the local tourism industry which continues to bleed over a steadily declining tourist arrivals rate.
“These reports will alert members of Congress and administration officials to that which we already know — that during this economic depression in the CNMI, another increase in the minimum wage this year will further harm our businesses and our people as we struggle to rebound from the economic downturn,” he said.
The governor met with both Faleomavaega and Murkowski during his last trip to Washington, D.C. to witness the Inauguration of President Obama.
The governor will again travel to Washington later this month and meet with the members of the U.S. House and Senate responsible for getting this language included in the stimulus bill.
