Wage Hike Study Asked On Consequences Tuna Industry Employmentff

A proposal to have more studies done on the impact of recent wage hikes in the Northern Marianas and American Samoa is now with President Bush.

The Fitial administration, which has opposed increases to the CNMI minimum wage, has welcomed the additional economic studies. It expressed hope the studies will provide federal policy-makers with a sound basis for minimum wage policy in the Commonwealth.

“The Governor believes that federal minimum wage policies should be objective and data-driven, not based on political ideology or partisan considerations. We support careful wage studies for both the CNMI and American Samoa, and we hope federal policy makers will be guided by such studies. We hope they will be willing to make changes if warranted by the economic data,” said press secretary Charles P. Reyes Jr.

Under the bill, the U.S. Government Accountability Office will be required to study the impact of the first two minimum wage hikes in the CNMI and American Samoa. The GAO will study how the wage increases have affected the rates of employment and the living standards of workers. The study will include other factors that impact employment and quality of living such as inflation in the cost of food, energy, and other commodities.

In addition, the GAO will look at how future increases might affect employment and the living standards of workers and the profitability of businesses, while also considering factors such as energy costs and the value of tax benefits.

The GAO study is due between March 15, 2009 and April 25, 2009.

The minimum wages for the Northern Marianas and American Samoa increased by another 50 cents last month. It was the second increase under the federal wage law signed last year. The minimum wage levels in both jurisdictions will continue to rise until they reach federal level of $7.25.

The CNMI minimum wage is now $4.05 an hour. For American Samoa, which is home to the US tuna canning industry the most significant being the minimum wage for tuna workers, which is currently $4.26 an hour.