Pacific Magazine > Daily News

Senators Say Minimum Wage Hike Will Hurt American Samoa



(Marianas Variety)

Three U.S. senators say American Samoa should not be required to raise its minimum wage this year, as required by a federal law passed last year, the Marianas Variety reports.

- ADVERTISEMENT -

The newspaper, quoting Bill Wicker, communications director for the U.S. Senate Committee on Energy and Natural Resources, said committee Chairman Jeff Bingaman, Sens. Daniel Akaka and Sen. Daniel Inouye (both of Hawaii) have written a letter to other senators saying this year's 50-cent minimum wage hike could harm the American Samoan economy.

“There is evidence of significant impact from the initial 50-cent increase and we believe that the scheduled 50-cent increase in July will, if it is allowed to take effect cause serious damage,” the senators said in their letter. “We are deeply troubled by the risk the scheduled increase poses to the community, and by the narrow window of time available to amend the law before the May 25, 2008 effective date. Accordingly, we want to notify you that we will likely request an amendment, on the first available vehicle in the next session that would defer the May 50-cent wage increase for American Samoa.”

There is fear in American Samoa that the federally-imposed wage hikes, which require that the territorial minimum wage eventually meet the U.S. minimum wage of $7.25 an hour, would mean the end of the territory's tuna canning industry. Some workers at the canneries make less than $3 an hour.

The Senate committee has scheduled a hearing on Feb. 28 in Washington, D.C. on the impact of the minimum wage increase on American Samoa and the Northern Mariana Islands. The senators' letter did not mention the possible impact of the wage hike on the Northern Marianas.

American Samoa Gov. Togiola Tulafono, American Samoa Congressional Delegate Faleomavaega Eni and Northern Marianas Gov. Benigno Fitial are expected to appear before the Senate committee.

http://www.mvariety.com/?module=displaystory&story_id=6933&format=html






 

- ADVERTISEMENT -