New US wage bills ‘insensitive’ to the CNMI

The House leadership finds the recent introduction of two minimum wage hike bills in U.S. Congress “disconcerting” and “insensitive” to the CNMI.

“We are concerned and alarmed by some of the U.S. congress’s move to impose a minimum wage that is much higher than wages in this region. It shows a complete insensitivity to the economic realities in the CNMI, especially if you take into account the fuel surcharge, the decline in garment industry, the looming pullout of Japan Airlines, among several other discouraging economic developments. So it’s very disconcerting,” said House leadership spokesman Charles Reyes Jr.

He said the House leadership, led by Speaker Benigno R. Fitial, hopes that concerned government agencies—Washington Rep. Pete A. Tenorio and administration-hired lobbyists—can communicate the CNMI’s concerns on the bills.

The bills—H.R. 2429, introduced by Democrat Rep. George Miller, and S.1062, introduced by Democrat Sen. Edward M. Kennedy—seek to raise the minimum federal wage to $5.85 per hour beginning on the 60th day after the date of enactment into law; then $6.55 an hour beginning a year later; and $7.25 an hour, two years later.

The bills would also initially raise the minimum wage in the Northern Marianas to $3.55 an hour after 60 days and an increase of 50 cents beginning six months after the enactment of the law, and every six months thereafter until the CNMI’s minimum wage equal that of the United States.

The current minimum wage in the CNMI is $3.05 an hour.

Governor press secretary Peter C. Callaghan expressed doubts, though, that such legislations would pass a Republican-dominated Congress.

“There has never been a broad support in the U.S. among Republicans in raising the minimum wage. So since the Republicans control the House and the Senate, I don’t expect this bill to get very far,” said Callaghan.

Former garment industry spokesman and newly-hired economic advisor to the governor Richard Pierce said wage bills are introduced in U.S. Congress every year but do not get passed.

“Those bills in Congress are like flowers coming in spring time. It’s perennial,” said Pierce.

Miller’s bill, the Fair Minimum Wage Act of 2005, was co-sponsored by some 101 other lawmakers, while Kennedy’s proposal was co-sponsored by 31 other senators.