NMI strategizes on wage hike

Business and government leaders plan to hire consultants, including an economist and a Washington D.C.-based legal firm, to fight against a move to impose federal minimum wage and immigration control in the CNMI.

This was discussed during yesterday’s Strategic Economic Development Council meeting at the Governor’s Office on Capital Hill. The meeting was attended by business owners and executives, as well as lawmakers and other government officials.

“The recommendation is to hire an economist from either University of Guam or University of Hawaii to do an economic study of the CNMI, make economic projections. It’s important that we use credible reports when we present our case in Congress,” said Saipan Chamber of Commerce president-elect Juan “Pan” Guerrero, who was present in yesterday’s SEDC meeting.

The SEDC, which is co-chaired by businessman Robert Jones, would serve as the “key committee” to organize and get everything done on the wage and immigration bill, which is being pushed by the Democrats in the U.S. Congress.

“The Chamber will be working closely with SEDC, which will review the final report before submission to Congress,” said Guerrero.

Press secretary Charles P. Reyes said SEDC, which consists of respected business leaders in the CNMI, is a diversified group.

“SEDC is good. It’s a pretty diversified group. We’re trying to get the consensus of the business community as well as members of the Legislature,” said Reyes.

Guerrero said the SEDC and the Executive Branch would be in charge of financial matters regarding the hiring of consultants.

This unified effort came following reports from Washington D.C. that the ruling Democratic Party is seriously considering a bill that would gradually raise the CNMI minimum wage, which is at $3.05 per hour, to the federal level of $5.15 per hour.

A few months back, Democrat congressman George Miller, a longtime CNMI critic, introduced a bill that does not only intend to raise the CNMI minimum wage but also impose federal immigration in the Commonwealth.

The bill was co-authored by incoming U.S. House Speaker Nancy Pelosi.

In the U.S. Senate, a similar bill is expected to be introduced by Democrat Sen. Edward Kennedy.

Guerrero said this issue is worrisome and should be urgently addressed. If passed, such a bill would mean further demise of local businesses, he said.

“We are very concerned. If this issue becomes a reality, you’d see more closure of businesses. Business is already down, the economy is hitting rock bottom. Miller’s bill will not alleviate the problem. With a 50-cent increase, the garment will definitely close down and relocate to other places.

“What I worry about are the hotels, the local businesses. Some will have to cut down their production and operation so as not to incur overtime. This is being done even now. The U.S. bill will bankrupt a lot of businesses here. The banks will be screaming because loans won’t be get paid. It’s going to be a disaster,” said Guerrero, whose family is into travel and hotel business, remittance, and bakery, among others.

House minority leader Arnold I. Palacios said the Miller’s bill is most likely to pass because Democrats have control of both congressional houses.

“There’s a high probability that it will get through. Let’s face it, the Dems are in control,” said Palacios.

Palacios and some members of the House of Representatives attended the SEDC meeting yesterday.

“The businesses are worried about Miller’s bill. SEDC has to come up with a counterproposal to that bill,” he said.

House Speaker Oscar M. Babauta said the Legislature is working closely with the Fitial administration and the business community in addressing the issue.

“We need to have a unified voice in Congress,” he said.

Earlier, Washington Rep. Pete A. Tenorio said there is a Democratic Party bill that is being prepared that would gradually raise the local minimum wage rate from $3.05 to the federal level. The increase would be done in 50-cent increments beginning six months after the bill is enacted until it reaches the federal rate, currently at $5.15 per hour.

Tenorio wrote acting Gov. Timothy P. Villagomez asking him to initiate efforts to address the issue because “we have a very narrow window of opportunity to affect change in the House language.”