The Chamorro Dream

A Chamorro worker was recently lured into the private business sector. He had been working for the local government, but agreed to join the private sector after his government salary was matched. Shortly after joining the private sector, however, the worker submitted his resignation, effective immediately (no standard two-week notice was ever issued).

This and many other similar examples amply proves that raising the minimum wage would not lure more local workers away from government and into the private business sector. The local worker mentioned above was earning substantially more than the local minimum wage. Indeed, his private sector salary was also significantly higher than the federal minimum wage. Yet, he still chose to resign from his private sector post and (presumably) return to government service.

Those who argue that a higher local minimum wage would attract more local workers into the private sector are gravely mistaken. It would do no such thing. The local minimum wage would have to be raised to at least $25 an hour—-higher than every country in the world, including the United States—-before significant numbers of local workers would ever abandon government “service” for the private sector.

Even if the CNMI’s local minimum wage were immediately raised to the federal level, to a whopping $5.50 an hour, this would not automatically compel thousands of local government workers to quit their government posts and seek immediate private sector employment. Most government employees already make more than the federal minimum wage.

In terms of local employment, the wage (pay) is not the only issue. It may not even be the single most important, overriding issue. Apart from compensation, other factors must also be considered, foremost of which is what might be termed the “Chamorro Dream.”

As we all know, the American Dream is to get rich, to make it big, to run a successful business, and so forth. The American Dream is to be either a millionaire or a multi-millionaire. It is to have a mansion and other substantial material assets.

The Chamorro Dream, by sharp contrast, is none of these things. It is not the classic, quintessential American Dream. It is far less ambitious than the American version.

The Chamorro Dream is to work for the local government until retirement (and then double dip by returning to government “service” after retirement). It is to receive a government pension rather than the proceeds of a 401 (k) plan, which must be individually managed and which entails greater responsibility and direction on the part of the beneficiary.

The Chamorro Dream is to receive a government-granted homestead, a government car, government-sponsored trips abroad for “training” and the like. The Chamorro Dream is to have a government-sponsored mortgage, a CDA loan, and other government benefits, including government insurance and medical referral. It is to have a savings account at a government credit union.

The Chamorro Dream, in short, is to be heavily reliant on government for virtually every need. It is to be well compensated for work that is not demanding and not entirely merit-based. It is to be complacent, to be content with mediocrity, rather than made anxious by the often excruciating demands of excellence and high achievement.

So long as the Chamorro dream is not shattered once and for all, the local people will never abandon government “service” and join the private business sector in droves. The minimum wage has nothing to do with it.

Strictly a personal view. Charles Reyes Jr. is a regular columnist of Saipan Tribune. Mr. Reyes may be reached at charlesraves@hotmail.com