Bill OKs wage studies for NMI, A. Samoa

A provision calling for more wage studies on the Northern Marianas and American Samoa has been included in a war spending bill approved by the Senate late last week.

The minimum wage in the Commonwealth and American Samoa will again increase by 50 cents effective today. This brings the wage floor in the CNMI to $4.05 an hour.

Under the Senate version of the Iraq war supplemental funding bill, the U.S. Government Accountability Office will be required to study the impact of the first two minimum wage hikes in the CNMI and American Samoa. GAO will study how the wage increases have affected the rates of employment and the living standards of workers. It will include other factors that impact employment and quality of living such as inflation in the cost of food, energy, and other commodities.

In addition, GAO will look at how future increases might affect employment and the living standards of workers and the profitability of businesses, while also considering other factors such as energy costs and the value of tax benefits.

The GAO study is due between March 15, 2009 and April 25, 2009.

Furthermore, the bill requires federal agencies to include the CNMI and American Samoa in regular studies done for the 50 states. The requirement applies to U.S. Department of Labor’s household and establishment surveys, the Bureau of Economic Analysis’ gross domestic data reports, and the Census Bureau’s population estimates and demographic profiles.

The Senate passed the war funding bill Thursday evening in Washington, D.C. The bill now goes to the House of Representative for consideration after the Memorial Day recess. The White House has threatened to veto the bill because of the domestic programs added to the Bush administration’s war request.

Pete A. Tenorio, the CNMI’s resident representative to the nation’s capital, welcomed the Senate’s inclusion of the CNMI and American Samoa’s section in the bill.

“These studies will provide more data on the economic condition of the CNMI than has ever been collected before,” Tenorio said in a statement. “With this data, Congress will be able to make informed decisions about future minimum wage increases in the CNMI and American Samoa. With the second increase, which goes into effect on May 26, we are crossing a significant threshold of $4 an hour; however we must find a balance between an appropriate and livable wage for workers, and the burden it may place on employers.”

Both the CNMI and American Samoa have urged Congress to conduct more studies on the wage increase. Earlier this year, the GAO released a report on the wage hikes, saying they may have adverse impacts on the two island economies. But the GAO also said more information is needed to make a more scientific projection.