Minimum Wage Debate Rages in the CNMI & DC

February 26, 2008

Posted by Wendy L. Doromal

Bravo! The Marianas Variety reported that Senator Maria T. Pangelinan D-Saipan submitted written testimony to today's U.S. Senate Energy and Natural Resources Committee Hearing supporting the incremental minimum wage increases. She is quoted as saying, "...all workers deserve to be paid adequately." The story states:

“I support the current law as enacted, mandating incremental increases in the minimum wage of the CNMI. I oppose any delay,” she said.

Sen. Maria T. Pangelinan, D-Saipan, in her written testimony, said the imbalance on the CNMI’s wage system contributes to its economic woes."

Senator Pangelinan criticized the U.S. Department of Labor report. (For other criticism of the report and views on the minimum wage read Minimum Wage- Views, Views on CNMI Minimum Wage and Federalization, Chamberonomics XXXII...Wages & Validity, and Chamberonomics XXXIII...who are the bad guys?.)

The Senator said:

"The U.S. Department of Labor released last month a report on the impact on the CNMI economy of implementing another round of wage hike.

But Pangelinan said the report did not interview those who earn the $3.55 an hour CNMI minimum wage.

“While I respect and appreciate the caliber of those interviewed and those compiling the U.S. Department of Labor’s report, it is also reasonable to point out that there is NO interview of a person from the commonwealth who earns the current minimum wage of $3.55 per hour,” she said.

“I ask the good people of this committee to consider that the wage increase we are discussing is from $3.55 to $4.05 per hour. Neither, after taxes, will buy a single gallon of gas,” she added.

On Saipan, a gallon of unleaded fuel is now sold at $4.04 and costs even higher on Rota and Tinian.

“The people of the commonwealth are now looking to the U.S. Congress to hold their course, not delay further increases, and finally bring some equity to this situation. As yet, per the U.S. Department of Labor’s report of Jan. 2008, there is no statistically sound economic data available from the commonwealth that justifies a delay of the currently mandated increases in the minimum wage in the commonwealth,” said Pangelinan."

Senator Pangelinan got it right. Last week the CNMI Senate passed a resolution asking the U.S. Senate to postpone action on federalization. Senator Pangelinan was the sole Senator who voted against the resolution.

The U.S. Department of Labor officials may not have asked the people earning $3.55 an hour how the minimum wage worked for them, but I did. Guest workers have told me that they can no longer afford housing. Many are now sharing housing. Some have elected to use candles to cut back on their electric bills, and some have no electricity. Many cannot afford to eat three meals a day, and some have taken up fishing to get food. Ron Hodeges reminded me that in Saipan drinking water, which is free in much of the US and other places, is a huge expense. It costs $1.00 for one 9 ounce bottle of water. The other evening I received a call from a guest worker-friend who told me he no longer has a land phone or cell phone so he was calling me with a phone card from a friend's house.

Congratulations to Senator Maria T. Pangelinan for her courage and common sense. Again, I challenge the politicians in the U.S. and the CNMI, as well as the employers and business owners who oppose this meager minimum wage increase to live for a month on $3.55 an hour.

The Senate Energy and Natural Resoucres Committee Hearing on this issue will be held tomorrow:

Full Committee Hearing: Impact of increased minimum wages on the economies of American Samoa and the Commonwealth of the Northern Mariana Islands

Thursday, February 28, 2008, 9:30 AM
Energy Committee Hearing Room - SD-366

The purpose of the hearing is to receive testimony on the impact of increased minimum wages on the economies of American Samoa and the Commonwealth of the Northern Mariana Islands.


Witnesses Panel 1

The Honorable Eni F. H. Faleomavaega , American Samoa Representative to the U.S. Congress

The Honorable Togiola Tulafono, Governor, American Samoa

The Honorable Pedro A. Tenorio, Resident Representative, Commonwealth of the Northern Mariana Islands

The Honorable Benigno Fitial , Governor, Commonwealth of the Northern Mariana Islands

Mr. Jay Berman , Senior Economist of the Office of the Assistant Secretary for Policy, U.S. Department of Labor