‘Don’t make minimum wage campaign material’

The CNMI minimum wage issue is too important to be reduced to candidates lobbing charges and accusations at each other, according to Rep. Heinz S. Hofschneider, who pledged to listen to all sides in finding a compromise.

Tuesday’s public hearing on Hofschneider’s minimum wage proposal, with Gov. Juan N. Babauta issuing a number of criticisms at his political opponent in the current electoral campaign, was what Hofschneider said was a good example of what he doesn’t want to see.

“Over the years of discussing this issue, I know and everyone in the business community knows, there is no good time for a minimum wage increase. Some businesses will be hurt, no question. But it’s not enough to simply leave a system that is deeply unfair to workers in place by simply opposing any increase in the minimum wage or that system,” Hofschneider said.

“Translation: Talk to me and let’s find a workable approach that serves everyone’s best interest,” he added.

Hofschneider said that he is well aware of the multi-tier, American Samoan-style wage system being backed by the Saipan Chamber of Commerce and formerly supported by the Babauta administration.

“I am not sure that that is a model that has worked well for American Samoa. But what this means is that we should have more discussions about whether this system will work for local workers,” Hofschneider said, “because I think it will take much too long to put in place and the benefits to the workers in American Samoa have been questioned by a number of observers.”

Hofschneider said that employers must consider that workers are perhaps the most important business investment, like the equipment and machinery they purchase, only more important. “Just as upgraded gear increases the efficiency of a business, the improvements in pay and benefits of workers tends to heighten business performance.”

Hofschneider said that while he empathizes with the operators of the CNMI-based companies with large payrolls facing such an increase, they must recognize that the debate over minimum wage is a U.S. national and international issue that is ongoing almost on a constant basis and of significant enough consequence to tear apart large American institutions like the AFL-CIO.

“This issue is always ripe for discussion.” Hofschneider said, “and I am looking forward to hearing constructive alternatives from the business community.” (PR)