2 Rota projects will pay minimum wage of $6.25

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Posted on Nov 03 2005
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The two large capital improvement projects that broke ground on Rota last week will provide the opportunity for as many as 110 local workers to earn $6.25 an hour.

Gov. Juan N. Babauta used his authority to set the $6.25 minimum wage for government CIP projects—not only on Rota but throughout the CNMI. The governor’s directive went into effect on Jan. 1, 2005.

The governor has actually increased the minimum wage for government CIP projects three times. Executive Directive #228 set the wage at the U.S. minimum wage of $5.15 on May 20, 2003. A second increase to $5.75 was mandated by Babauta with Executive Directive #241 on July 29, 2004. The third increase—to $6.25—was required by Directive #241 and went into effect on Jan. 1.

Rota projects will hire 100+ workers

The two Rota projects are an extension of the airport runway and completion of the Rota Health Center.

Prime contractor for the runway, and $8.7 million, is OKP (CNMI) Corp., headquartered in Singapore. The company expects to employ about 70 workers for the job.

The second project, the Rota Health Center, is being constructed by GPPC Inc. at a cost of $4.6 million. GPPC will need 40 workers.

Workers interested in the airport runway project or the Rota Health Center extension can contact OKP (CNMI) Corporation or GPPC, Inc. directly.

Prospective workers may also get in touch with the Employment Security Division of the CNMI Department of Labor at 236-0926/0928.

The Babauta administration said it issued executive directives #228 and #241, raising the minimum wage paid on government CIP and service contracts, in order to encourage local employment. The CNMI’s minimum wage is set at $3.05 per hour.

The administration claims that the governor’s policy has shown positive benefits.

“At the Garapan Street project now under construction, for instance, six of the 10 workers directly hired by Maeda Construction are local CNMI residents, earning $5.75,” the administration said in a statement.

“The governor used his executive authority to raise minimum wage for government contracts, because the Legislature had failed to take any action on minimum wage.

“The Governor submitted legislation in April 2003, raising minimum wage by 40 cents the first year and then 35 cents and 25 cents in subsequent years. But the Legislature did not agree to the proposal. The Governor then took action through Executive Directive,” the statement adds.

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