Wage Raise

P.L. 110-28 is the federal law that increases CNMI minimum wage by $.50 per annum. Sec. 8103(b)(A)&(B)--see page 78. We should be seeing that increase now at the end of this month, I think.

No one seems to be talking about this. Why not?

191. Minimum Wage Hike-A Call for Public Hearings

I'd like to see a public hearing in the CNMI on whether to continue the minimum wage hike this May 2008.

American Samoa is conducting such hearings. See this Radio New Zealand item. And while we have some similarities to American Samoa (past reliance on an industry that is pulling out; and workers imported from elsewhere), our situation is not exactly the same. We are closer to Guam and Asia, perhaps with a bigger base for our second (now first) industry--tourism.

Of course, our Senate has already gone on record as opposing the wage hike and calling for a suspension of the small 50cent increase scheduled. Kudos to Senator Maria Pangelinan for being the lone voice of compassion and reason.

I think we need another minimum wage hike. With our current minimum at just $3.55 / hour, no one has a real incentive to go out and work.

I also wonder about the classified ads in the newspaper for jobs these days. Look at today's ads in the Tribune, for example. You'll see "1 carpenter...salary:$3.05/hour" and yardworker--$3.05 / hour; and commercial cleaner--$3.05/hour; and diesel mechanic--$3.05/hour; and janitor-$3.05/hour; and beautician-$3.05/hour; and cook--$3.05-3.25/hour--all from Philipppine goods Const. Inc. You'll also see auto mechanic-$3.05-$3.55/hour-A.C.C.S. Corporation dba Cartown.

How are these businesses offering these jobs at lower than our current minimum wage? We need the U.S. Department of Labor to come in and stop this, because obviously our own local labor department isn't. (And will probably certify these companies' employment of contract workers based on these advertisements.)

I'm also disgusted to see the usual array of skilled workers, all at minimum wage--graphic artist, mason, electrician, accountant. These are not typically minimum wage jobs in America. Just check on line any state and look at the classifieds in a local newspaper. I chose Ohio (since I grew up there eons ago). Graphic artist--like a page designer--listed as "entry level" pay, but with paid vacation, health benefits and a 401k plan! Construction workers--like maintenance worker doing carpentry, painting, etc.--$14/hour, plus paid vacation, medical benefits and a 401k plan. "Accountant"--translate this to a simple payroll clerk--$15.00 / hour.

Obviously there's a strong economic pull for our island workers to move to the states. We can't compete by offering equal pay as our mainland counterparts, but we certainly can raise our minimum wage, which in turn might help push up other wages on top of those. And thus we get closer to a decent, living wage.

With family and our beautiful environment, this could be enough to keep our local talent pool here, and lessen our reliance on foreign workers, make us more independent, and strengthen our economy from within.

Do we want this? Or do we want the same few businesses raking in profits for themselves by using cheap foreign labor, relying on people who are denied basic civil rights and a share in the economic pie? Do we want a community that values its local citizens as workers and pays them accordingly, or do we want to push our blue-collar working citizens out the door to Guam and the mainland U.S.?

Well, I know what I want. Thoughts, any one else?

187. Minimum Wage in the CNMI

The CNMI got a 50cent raise in minimum wage (to $3.55) last July 2007, and is set to have another 50cent raise (to $4.05) this May 26, 2008.

It comes as no surprise that our illustrious governor is trying to put the kibosh on this next incremental raise, and all future scheduled raises (50cents each year through 2015, until we reach $7.25, which will be the minimum wage in the U.S. set for year 2009). He lobbied heavily against the first increase, and effectively insisted on having the minimum wage law include requirements for a study by the Department of Labor on the effect of the raises.

And he is not alone--the representative to the U.S. Congress from American Samoa has introduced a bill to stop the incremental minimum wage increases, which also apply to them.

The U.S. Department of Labor has now issued its report, and the Variety and Tribune have each reported the governor or his spokespeople saying how this report completely vindicates their argument that raising minimum wage in the CNMI is harmful to our economy.

Thanks to Ken Phillips at SOSaipan for a link to the actual report, which I've linked to, also, here.



Ken's comments are also helpful in orienting a reader to the report's "findings."

CNMI Governor Fitial is using the age-old practice of "spin" to argue that the DOL's latest report supports suspension of the minimum wage hike. See, e.g. this Variety news story or this Tribune story.

The spin includes distortions of what the report actually says, what people in the CNMI think about raising minimum wage, and characterization of the report as reaching a conclusion against implementation of the next minimum wage increase.

1. According to the Tribune article, "Increasing the CNMI wage to $7.25 an hour, the report said, is comparable to raising the U.S. minimum wage to $16.50 an hour." NOT TRUE.

First of all, the report actually says "The scheduled increase in the minimum wage to $7.25 (by 2015) will likely affect at least 75 percent of wage and salary workers in the CNMI. By comparison, in order to directly affect 75 percent of U.S. hourly workers, the minimum wage would need to be raised to $16.50, the 75th percentile mark for wage and salary workers who are paid hourly rates."

What this means is that the CNMI has a much larger segment of its working population suffering from the low minimum wage than the U.S. does. In the U.S., minimum wage is truly a "floor" and many workers obviously earn more than the minimum, which is why it would take such a much larger increase to effect 75% of them. This is not an argument AGAINST raising minimum wage here, but only highlights the urgency and desperation of why we need these incremental raises.

Second of all, the report is comparing apples and oranges--or really today and many years hence. The CNMI is not facing a raise to $7.25 this year. We are facing a raise to $4.05 this May. NOTHING in the report tells us what that is comparable to in the U.S.


2. The governor reports a "broad concensus" against raising the minimum wage to the next level here. Jeff Flores has already spoken out here that he disagrees, and doesn't believe people here are uniformly against raising minimum wage.

It's time to show that the Governor is misstating the facts about what the people in the CNMI want. Every worker here who earns minimum wage of $3.55 who is in favor of raising their minimum wage to $4.05 should contact Mr. George Miller or any of the representatives on the House Committee on Education and Labor. Any other person, whether you earn minimum wage or not, who feels it's important to raise the CNMI minimum wage to $4.05 this May, can also express their views to the committee members. You can see the full committee roster here. Or you can just write or call: Democratic Staff, 2181 Rayburn House Office Building, Washington, DC 20515, (202-225-3725).

3. The DOL report includes statements about the past that are informative, but nothing it says about the present effect of the minimum wage here or the likely effect another raise may have is at all reliable. The report itself denies reliability.

It notes that there are many adverse economic factors. In discussing the garment industry, the report says that lack of data make it impossible to distinguish among the various adverse factors as to which are having the greatest impact. (page 31)

Although the report paints a bleak picture and talks about how difficult having a raise in minimum wage is when times are tough, it also suggests that the tourism industry may rebound. If it had applied its own logic to this statement, this might suggest room for absorbing the impact of the minimum wage hike.

But most telling is this: "The CNMI does not yet have in place macroeconomic data collection and accounting-systems technology capable of generating information on total output and its components on a monthly or quarterly basis. As a result, there is not a way to provide objective measures of productive capacity, capacity utilization, employment, wages or unemployment rates...In the absence of complete and accurate macroeconomic data, there is no objective method to guage the level of aggregate economic activity, the level of employment it supports, or other important measures such as total personal income, consumption, savings and other metrics that explain the well-being of the population and the average citizen...The lack of such data are especially a barrier to assessing the current and future impact of the recent and scheduled increases in the minimum wage."

In other words--they're just guessing, and can't say anything objective.

The Governor's spin is nothing but more twist against what is fair and just--a living wage for workers.

171. The Myth of the Lazy Local

Donald (sorry for earlier mistake) Cohen hints at it in his letter today. Anthony Pellegrino included it in the assumptions made in his column earlier this week. We hear it all of the time--islanders, that is, the Chamorros and Carolinians of the NMI, don't want to do the work that has been handled by the foreign workers, because they're lazy!

I beg to differ.

This is a stereotype like the "shiftless Negro" of last century, or the siesta-taking Mexican--both prominently featured at times in America. It's a false icon that has worked its way into the dialogue and needs to be challenged.

I've been here 23 years. I know people in most segments of the community. I work with Chamorros and Carolinians in my office on a daily basis. They're not the exception. They represent the excellent quality of workers that exist in the local community. And although I work in an office, it's not all paper work. There are times when we all pitch in to haul water, clean the office, repair our dilapidated surroundings. In the past we've moved locations. And everyone, especially our local staff, has worked hard at these jobs, too.

We've all seen islanders sweat and endure hours and hours of hard work on their local farms, or preparing for fiestas and other events. This is real work. We know Chamorros and Carolinians who have moved in droves to the mainland U.S.A. for better jobs.

There is no lazy gene in the local talent pool. When the motivations are there, islanders work as hard as anyone else.

The problem is the issue of motivation. What U.S. citizen wants to work for a mere $3.55 / hour? (And that represents a raise from the $3.05 that prevailed as minimum wage until July 2007!) If islanders value their work at a higher rate than $3.55 / hour it doesn't make them lazy; it just means that they are fortunately not as desperate as the impoverished foreign contract workers who will accept any low pay. If the local islanders are moving to the mainland for jobs (which they are), they're not expecting to laze about. They're working hard, but getting higher pay that their work deserves.

I've heard complaints from Saipan employers about their local staff taking off for funerals and family needs. I've known locals who gave up their jobs for these types of reasons. All to whom I've spoken at these times seem ignorant about the federal law, the Family Leave Act. We could do with some better education on this law and the protections it affords. We could use a local law that extends this act to all employers, including the small ones. Then there would be fewer problems with these personal issues.

Just because foreign workers have fewer rights, less status and are more vulnerable, they complain less. That doesn't mean the local worker is a bad employee.

Of course there are some who will not work no matter how high the pay or good the opportunities. These people exist in all cultures. But they are a small minority.

So let's stop assuming that Chamorro and Carolinians do not want to do the hard work, the construction jobs, the farm work, the cleaning and service jobs. And let's stop pretending that it's all about "training." There is some training needed, especially for construction, but that can be met with voc-ed classes and on-the-job training the same as in the mainland.

We don't need special rules to get locals into the workforce. We don't need special opportunities and more expensive "training."

What is lacking is "motivation." And motivation could be instantly supplied with a higher minimum wage, one comparable to that in the mainland U.S.A., exactly what has lured hundreds and possibly thousands of locals to the mainland in the past few years.

What we have instead of sufficient motivation is this foolish, slow adjustment of minimum wage that is designed for failure. It's designed to cost employers just enough to cause problems and not provide enough boost to workers to make a difference--so that it can be shut down and stopped, and the further increases can be scuttled. And it is designed so that suppressed wages at the horribly low amounts can be continued.

With higher wages in the private sector, the local population will step up and WORK! Employers will be less tempted by cheap foreign labor, which won't be as cheap any more. Those foreign workers who remain in the CNMI will be treated better, too, at least economically, with higher wages. And everybody will win. Those earnings, in whole or in part, can be spent here, or saved here, and help restore our economy.

So please, everyone--including our elected leaders here, and our community and federal leaders-- stop assuming that locals do not want to work in real jobs. Stop assuming we need labor laws that grant special privileges to our local population. Our elected leaders especially need to stop pushing for desk jobs and management positions for locals. Let's honor all work--not just with "labor day" and recognition that the leader of our Christian community was himself a carpenter. Let's honor it with a living wage and the courage to treat people who have blue collar jobs as important, contributing members of our community.

We have a diverse community, and a range of talents, skills and interests even among our local populations. Let's embrace this diversity. Let's provide the motivation for work by everyone, in whatever jobs are needed to be done. That motivation would be higher wages, decent wages, a "living wage."

And then let's see who is "lazy."

136. Kudos to Pete A for his stance on the CNMI's Federalization and other thoughts.

The governor has called on Pete A. to retract his support for federalization of the CNMI immigration. I say--Pete A.--right on.

My very first blog post was about the minimum wage and federalization. I tackled both issues, which are related, like two sides of the same coin.

Since I wrote that blog post, we've gotten a small minimum wage increase of $.50 per hour, so our workers now earn $3.55. Next year, the U.S. law provides that there will be another $.50 increase here, unless forces against it manage to interrupt the law's application (always a possibility). Meanwhile the U.S. got a bigger minimum wage increase, so the gap between job pay here and in the U.S. continues to widen. I'm not happy with the minimum wage increase--I think it was too small and spread out over too much time. And it was designed to give ammunition to those who will say how raising the wages has caused businesses to fold, hurting the economy, without any appreciable increase in benefits. Well, consumer spending can hardly go up with such a small-scale increase. I think this wage increase was designed to fail, not succeed. As I said, I'm not happy.

Federalization of our immigration was on track, too, but seems to be getting derailed. I am very proud of Pete A. for sticking to his guns about what the people here really want. I WANT FEDERALIZATION NOW.

The CNMI has lost its ability to take care of immigration. We have a huge backlog of cases awaiting hearings or decisions. We're seeing human trafficking-foreign women tricked into accepting jobs where they are locked up except when they're dancing nude and serving ladies drinks. We have aliens murdered in the CNMI and a DPS that is over-taxed and unable to solve the murders.

We need help.

I'm tired of hearing U.S. citizen spouses threaten their alien spouse with divorce and automatic deportation as a means of family control and domination. Our laws don't call for any requirement of people getting married to provide for permanent residence for their spouses.

I'm disgusted that we have an alien here who applied for refugee protection and who is still waiting for a decision more than a year after having a hearing. You know--justice delayed is justice denied.

I find it frustrating that we have difficulty addressing human trafficking because of the problems with the fit between U.S. law and CNMI's immigration role.

We don't need control of immigration to be "self-governing." We elect our leaders. Our congressmen make our local laws. We can participate in a federal system, where the federal government handles issues of national concern like foreign relations and immigration and the local government handles issues of local concern like crime and public services. There's nothing demeaning about such a federal system.

The CNMI doesn't have enough money. Our CUC is in a sorry state. Our public schools are understaffed and under-funded. We don't have enough money for doctors and blood and all that we need for health care. Our police officers are underpaid and overworked. Our roads need fixing. We can't even take care of the stray dog population or copper wire thefts. Why do we want to keep pouring our CNMI dollars into an immigration system that only benefits a few businessmen and exploits other human beings? Why do we want to embrace a system that has forced our U.S. citizen population to head to the mainland in droves so they can get decent jobs rather than compete here against unlimited numbers of aliens willing to take the pittance offered as a salary?

We need federalization of our immigration. We need it now. Actually, we needed it yesterday, last month, last year, last century. But we still need it--NOW.

90. Cost of Living--a postscript on Minimum Wage

If the new minimum wage went into effect immediately, an hour of work would buy a gallon of gasoline (well, except for taxes paid on the "earnings"). But it doesn't go into effect until July. So for now, an hour of work is not enough, even if there weren't income tax, for this basic purchase.

89. Minimum Wage in the CNMI

The minimum wage is going up a whopping 50 cents, to $3.55 per hour, starting in July 2007.

Meanwhile, the U.S. minimum wage rises to $7.25, in a leap of $2.10. Notably, 30 states already have local minimum wages at that rate or higher.

And still our businessmen, like Juan Pan, complain and cry that this raise will hurt "us." Still, on our local news, we hear conjectures and hopes that there are loopholes, that this wage hike will be limited to one year, that the full effect of 50 cents per year until we reach the U.S. level just won't happen to us, won't be forced on us.

What "us" do these concerns purport to address? Not me. Not the fair businessmen and women here who already pay more than minimum wage. And certainly not the vast majority of people in the CNMI who are adversely effected by the wages kept low by a stagnant minimum wage and a ceaseless influx of desperate foreign workers, while prices continue to rise.

And yet it is these loud protests against raising the minimum wage here that make the news, are heard and repeated, are echoed by our Governor, are shown to represent us.

I am deeply ashamed of the CNMI.

The churches are full on Sundays, and the same people who sit in the pews and "pray" are willing to treat their brothers and sisters in God with contempt and disdain. Is it simply too much for us to share our earthly wealth? And why aren't our priests and ministers speaking out more forcefully about the needs of the poor? Don't all major religions include the precept of the need for charity? Isn't Christianity a promise to the poor, where a rich man will have as much chance of entering heaven as a camel of getting through the eye of a needle? Obviously, there are limits to the faith we share, weaknesses in our practice of it.

Instead of taking a chance on offering a living wage, the CNMI, through its loudest voices, insists that even a small pittance added to the miserable wages paid now will hurt us. What about all the employees, the "us" who are hurt by the constantly decreased value of static earnings?

The minimum wage hike that is now law, as it will be applied to the CNMI, is inadequate and is designed (intentionally?) to sabotage future wage increases. It's enough to force some marginal businesses to close, but it's not enough to do much good for people here to increase their spending or boost the economy in that regard.

I'm glad that the U.S. stepped into the long-time breach in fair wages here. I'm glad that there is some wage increase. But I wish that all of us in the CNMI would raise our voices to drown out the greedy, the heartless, and the users who protest this wage raise.

WE WANT A LIVING WAGE FOR EVERYONE. We support this and more raises to the minimum wage. All together now...WE WANT A LIVING WAGE FOR EVERYONE.