Hastert urged to oppose U.S. minimum wage in the CNMI

Saying no study has yet been made to assess the impact of extending federal minimum wage law to the CNMI, local lawmakers yesterday formally sought intervention of U.S. House Speaker J. Dennis Hastert to block attempt to press such proposal.

In a resolution adopted at their session, members of the local House of Representatives prodded Mr. Hastert to oppose the application of the U.S. minimum wage to the islands.

The appeal came as a group of Democrat members of the U.S. Congress has stepped up pressure to raise minimum wage here at par with the federal level.

The group has maintained the CNMI has been provided enough time and leeway to reach the federal minimum wage level for the past 14 years since officially joining the United States political family in 1986.

At present, minimum wage in the CNMI is $3.05 per hour, while the federal rate is $5.15 per hour. Most of nonresident workers on the islands are minimum wage earners.

“…[D]espite the job opportunities afforded to thousands of foreign laborers willing to earn a better living in the Commonwealth, opponents… in Washington D.C. continue to criticize local minimum wage policies because they are not in line with the U.S. federal minimum wage,” the resolution read.

It also emphasized that no study or report has been conducted on how the application of the federal wage law would affect the islands, particularly the local economy.

House Speaker Benigno R. Fitial the other day said the move would affect the livelihood of the people of the Commonwealth, bankrupt the government and bring the islands back to federal subsidy and dole-outs.

Saipan Chamber of Commerce President Lynn Knight has also warned against the legislated increase in the minimum wage, saying it would force many of the businesses to shut down and lay off workers.

The local business community has repeatedly opposed any increase in minimum wage claiming that most of them are already paying close to, if not the $5.15 federal minimum wage because of subsidies they give on food, housing and transportation to their nonresident workers.

Several measures have been introduced in Congress seeking extension of the federal minimum wage to the CNMI, but none has yet gone on the floor for voting.