Federal Wage Hearing To Be Held In American Samoa
A congressional hearing will be held in American Samoa early next year to receive local testimonies on the federal minimum wage law that went into effect in July this year.
The U.S. House subcommittee on Insular Affairs, chair by Congresswoman Donna Christensen, D-U.S. Virgin Islands, has already held field hearings this year in Guam and the Commonwealth of the Northern Mariana Islands.
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The new federal minimum wage law has been criticized by leaders of both American Samoa and CNMI, the U.S. Pacific Territories mandated by the law to get a 50 cent hike in July.
Provisions of the law require the annual increase of the minimum wage of both territories until they reach the new federal minimum wage of $7.25.
American Samoa Congressman Faleomavaega Eni said in a news release that he extended an invitation to the subcommittee to hold a hearing in Pago Pago and he is thankful to Christensen and the subcommittee for accepting the invitation.
He said the hearing will be held in mid February and will focus specifically on the issue of minimum wage relative to the impact on the economy of American Samoa.
The subcommittee will have a chance to review the Department of Labor’s (DOL) economic status report, expected to be released next month and it is a good opportunity to revisit and address some of the contentious elements in the minimum wage issue, said Faleomavaega.
The federal minimum wage law requires DOL to conduct a study on the economic impact of the escalating clauses on American Samoa and CNMI.
The study, which began in September, is complete but will not be released publicly until its submitted to the U.S. Congress, said David Robinson, the president of the American Samoa Chamber of Commerce.
Robinson said he was informed early this week by DOL about the latest development in the study, adding that he is not aware at this point of what’s in the final report to Congress.
“So I’ve asked the Interior Department to look at this report and what it says about American Samoa because this is a very important issue not only for the government but our business community,” Robinson said. “Right now its anybody’s guess what is in that [DOL] report.”
Robinson said a territorial task force charged with conducting its own review of the minimum wage impact has forwarded its report to DOL. “I really do hope that the local report, which highlights some of the problems that the economy faces if the escalating clauses are implemented, is included in the final report to Congress,” he said.
As for the hearing, Robinson said the Chamber will be well represented and will provide the necessary input as to the impact of such hikes on local businesses.
“I expect that the Chamber will have a significant input in this hearing and there are alot of things we need to talk about and share with the subcommittee,”
he said.
Faleomavaega, responding to questions, said he will confer with Christensen when Congress returns from the Christmas break on the list of possible witnesses to include government, traditional leaders, business and members of the public.
He said “the hearing should be fully televised” in American Samoa.
“I hope the hearing will give our people a better understanding on how Congress operates, and seeing the differences between local issues and the federal level of government,” he said via e-mail from Washington D.C.
During the hearing, “we’ll look at the current federal law on minimum wage and then consider where the economic report comes into play, and if necessary I will introduce appropriate legislation to coincide with the economic conditions of the territory,” said Faleomavaega.
“Without knowing what the DOL report will say, I strongly believe we cannot afford another 50 cent increase of our minimum wage, but we’ll see,” he added.
Interior Department’s deputy assistant secretary for insular areas, David B. Cohen said he has not yet heard about the congressional hearing in American Samoa because he is on leave.
“However, it’s good that Congress is attempting to determine the impact of minimum wage increases on American Samoa’s economy,” he said via e-mail from Washington. “With the economy so heavily dependent on the canneries, it is important to understand the degree to which they can absorb future increases.”
The canneries, StarKist Samoa and COS Samoa Packing, is the largest private employer in the territory with a combined workforce of over 5,000 workers.
Cohen said Interior Department has been working closely with DOL to ensure that they make an effort to describe scenarios that could result from possible wage increases.
“It is important for Congress to have the benefit of expert analysis, even though the future cannot be predicted with certainty,” he said. “Congress needs to know the benefits and risks of failing to alter the current policy.”
There was no immediate reply from Gov. Togiola Tulafono to an e-mail question sent to him on Thursday morning.
