CNMI Federal Minimum Wage Delay Signed Into Law

September 11, 2013

The Saipan fat cats and Chamber folks are celebrating passage of S. 256  even as the private sector workers in the CNMI struggle to put food on their plates.

'On motion to suspend the rules and pass', S. 256 passed the U.S House on Tuesday. The bill provides for CNMI control of submerged lands 3 miles from shore and a delay in the increase of the federal minimum wage in the CNMI.

There is something intellectually dishonest about Democrats who rally for a wage hike, introduce and support legislation calling for an increase in the federal minimum wage and then vote in favor of a bill that would delay the increase in the federal minimum wage in the CNMI. Are they counting on the fact that no one pays attention to bills that impact the insular areas when they make these bi-polar decisions?

Constituents in the states need to know that their hypocritical elected officials who are calling for a minimum wage increase in the mainland stuck it to thousand of truly underpaid and suffering workers in the U.S. Commonwealth of the Northern Mariana Islands.

Especially sickening is the fact that the vast majority of people who earn minimum wage in the CNMI are nonresidents who have absolutely no representation in the U.S. Congress. Just one more jab to the disenfranchised underclass that keeps the CNMI afloat.

Despite an increase in tourism and improvement in the CNMI economy, the rich employers lobbied for the delay so that they could have more money jangling in their already deep pockets. The Saipan Chamber of Commerce members' exaggerated praise for those responsible for the bill's passage suggests that some of the money that they will save will be donated to upcoming political campaigns. They certainly will not be increasing the pay of their struggling workers. It takes a law to force them to do that.

Shame on every Democrat who supported and voted for this bill and shame on President Obama if he signs it.

See also:

A Living Wage is a Human Right
S. 256 Passes Senate
Senate Hearing on CNMI Issues
Senate Hearing Reveals Inconsistent Testimony

Below is the written testimony that I submitted to the Senate Committee on Energy and Natural Resources for the July 11, 2013 hearing regarding the provision to delay the federal minimum wage increase: 

As a labor and human rights advocate, I would like to express my strong objection to the provision in S.1237 and in its companion bill, H.R. 2200, that would delay the increase of the federal minimum wage in the U.S. Commonwealth of the Northern Mariana Islands (CNMI) every other year starting in 2013. 
Section 8103(b)(1)(B) of the U.S. Troop Readiness, Veterans’ Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007 (as amended by section 2 of Public Law 111-244) is amended by striking ‘2011’ and inserting ‘2011, 2013, and 2015’.
A separate Senate bill, S. 256, also calls for a delay in the CNMI’s $.50 federal minimum wage increase in 2013 and 2015. 
The Fair Minimum Wage Act of 2007 component of P.L. 110-28 required the CNMI minimum wage to be increased by $.50 an hour each year until it reached the level of the national minimum wage in 2015. Before P.L. 110-28 became law in May 2007 the CNMI minimum wage was a mere $3.05 an hour. Six years later the federal minimum wage in the CNMI remains at a shameful $5.55 an hour.

The scheduled 2011 $.50 federal minimum hourly wage hike was delayed by passage of H.R. 3940, which became P.L. 111-244. The delay was promoted by the Saipan Chamber of Commerce and the Hotel Association of the Northern Mariana Islands (HANMI) and backed by CNMI Delegate Gregorio (Kilili) Sablan. Although they claimed that the weak economy would be further harmed by the scheduled $.50 hourly increase, the U.S. Department of Commerce Bureau of Economic Analysis indicated that theCNMI economy actually grew 2.3 percent in 2010. 
When members of Congress make decisions involving delaying the scheduled CNMI minimum wage increase, they primarily weigh the opinions of the Chamber of Commerce, the Hotel Association of the Northern Mariana Islands (HANMI) and other business owners who advocate for lower wages to ensure their own higher corporate profits. The members routinely ignore the needs and opinions of the 12,000 disenfranchised, legal long-term foreign workers who make up more than 80 percent of the private sector workforce.  Although most of the foreign workers have lived and worked legally in the CNMI for 5, 10, 20 or more years, they remain the Northern Mariana Island’s voiceless underclass.

The U.S. citizens who work in the private sector deserve a fair wage.  An underlying purpose of Title VII of P.L. 110-229 was to phase out foreign contract workers while training U.S. citizens to learn the skills needed to replace foreign workers thus reducing the unemployment among U.S. citizens in the CNMI. Maintaining an unfair minimum wage that promotes poverty and a poor quality of life is not the way to encourage U.S. citizens to work in the private sector. More and more of the CNMI’s residents are leaving the CNMI to move to Guam and the U.S. mainland where they have opportunities to make a decent living. 
Resident and nonresident workers in the CNMI struggle to survive. Their meager earnings cannot keep up with the rising costs of commodities and utilities. Many of the workers must choose between paying rent and healthcare. According to the 2010 Census, over 33 percent of the CNMI population has no health insurance, 85.3 percent of families with children under 18 years of age live in poverty, and the per capita income is a mere $9,656. As of January 2013 there were 3,518 household members and 9,522 individual recipients of the federal food stamp program. The CNMI Medicaid client base is about 18,000. The poverty in the CNMI is worsened by government policies, and can be corrected by taking appropriate actions such as honoring the law that was passed in 2007 to incrementally raise the minimum wage in the CNMI. 
When the vast majority of a population lives below the poverty level, they cannot afford to stimulate the economy with any purchases other than those needed to survive.  As long as the federal minimum wage is substantially less than a living wage, there will continue to be an exodus of people from the islands, and the economy will not improve. An economy built on the backs of indentured servants will not grow. 
There is no economic basis for proposing two more delays in the scheduled annual $.50 minimum wage increases in the CNMI. The tourism sector of the economy in the CNMI has increased significantly according to the Marianas Visitors Authority, which reported a boost in tourism, the CNMI’s main industry. In May 2013 visitor arrivals were up 16 percent compared to May 2012. In fact, it was reported that there is currently ashortage of hotel rooms in the CNMI to support the increase in visitor arrivals. In January 2013, HANMI reported the hotel occupancy rate was at 91.05 percent, the highest in 15 years. 
In his 2013 State of the Union Address, President Barack Obama called on Congress to increase the national minimum wage to $9.00, stating, “Working folks shouldn't have to wait year after year for the minimum wage to go up while CEO pay has never been higher." 
At the same time that some members of Congress are pushing to keep the CNMI federal minimum wage at an immoral $5.55 an hour, we see other members heeding President Obama’s message by supporting an increase in the federal minimum wage. S. 460, introduced on March 5, 2013 by Senator Tom Harkin, and the companion bill, H.R. 1010, introduced by Rep. George Miller on March 6, 2013, both propose an increase of the federal minimum wage.

S. 460 and H.R. 1010, The Fair Minimum Wage Act of 2013, “amend the Fair Labor Standards Act of 1938 (FLSA) to increase the federal minimum wage for employees to: (1) $8.20 an hour on the first day of the third month after the enactment of this Act; (2) $9.15 an hour after one year; (3) $10.10 an hour after two years; and (4) the amount determined by the Secretary of Labor (based on increases in the Consumer Price Index) after three years, and annually every following year.”

It is perplexing that CNMI Delegate Gregorio Sablan who introduced H.R. 2200, which proposes to delay the federal minimum wage increase in the CNMI, is also one of the 141 cosponsors of H.R. 1010 that proposes to increase the federal minimum wage. Likewise, Senator Ron Wyden (D-OR), who sponsored H.R. 2200’s companion bills, S. 1237 and S. 256, is one of the 30 co-sponsors of  S. 460 that would raise the federal minimum wage. Both support delaying a fair wage for the workers in the CNMI who are some of the lowest paid workers on U.S. soil, while both supportraising the minimum wage for other U.S. workers. Why? 
It is time to end the disparity between workers who toil on U.S. soil in the CNMI and workers who toil on U.S. soil in the U.S. mainland. The vast majority of the workers in the CNMI are disenfranchised, oppressed, and voiceless. Elected officials in the CNMI and in the U.S. must listen not only to employers and business organizations who stand to benefit by keeping wages artificially low, but to the workers ­–residents and nonresidents– most impacted by the low wages. 
Income inequality in the CNMI prevents sustained economic growth, keeps U.S. citizens from applying for low-paying private sector jobs, and holds those working in the private sector in extreme poverty. The proposed wage delays mean that the resident and nonresident workers of the CNMI will not even see a federal minimum wage of $7.55 an hour until 2018, five years from now. That is truly unacceptable and unjust. I urge members of Congress to stop any further delays of the scheduled minimum wage increases in the CNMI.


Anonymous said...

Thanks for saying what needs to be said -the truth.

Anonymous said...

I think Kilili's time is past, best get some one else to fill that slot.
Same with Inos whio is only an extension of Fitial, but much smarter at covering his tracks.

Anonymous said...

CNMI dirty politicians make this happen to kiss investor's asses and to allow CW's continue to be abused & exploited. CNMI companies are in a hurry to fill positions of CW's when their applications for approval is pending with USCIS. Mr. Kilili kept his mouth shut since HANMI & NMHR repeatedly requested to allow CW to work continuosly when applications for CW renewal remain pending. So far no change was seen, CW's are subject to lay off temporarily when their applications for renewal are in progress with USCIS, California service center. No incentive or living cost was offered to these affective non-resident employees. What a shame to the law, CNRA PL-110-229!!!

Anonymous said...

JFYI, there is an article in todays (Sun) Guam PDN "Why we should raise the minimum wage"
It is near the bottom of the page under Opinions.

And Guam is already at $7.25 hr minimum wage.

But then again this issue is mute unless the CW extension is closed in 2014 and Business are forced to hire under the "H" visas along with the wages.
Or a stats is given.

Until more of the locals are forced into the private sector nobody will care about the minimum wages, the political factions will bend to the will of the private sector..

Anonymous said...

big fish eating small fish-shame on gov. and rep.killi killie.abuse is continue by them.saipan chambers business/usa federal/cnmi corrupted poor mentality politicians are involved to do so and corrupted system will continue...oh they forget the universe supreme power.fitial had done same you knew and what happen to its your turn no one can saved....amen

Itos Feliciano said...

You are right Wendy shame on president Barack Obama if he sign this Bill S.256. in California they passed the minimum wage increase to $10.00 per hour and they will send it to president Obama to sign. Here in the CNMI more shame to Rep. Kilili he knows that the nmi workers are suffering to the cost of food and utilities.I thought he is for the people? 50 cents is not much...the cost of Butane gas here is $3.75 4pcs....Rice 20lbs is $20.00 Gasoline is $4.95 per gallon. Instead we are going forward we are going backward. The worst part here is they are requesting the CW to be extend, they want the suffering to be extended. We need a town hall meeting so they will know what is happening to the people of the cnmi.

Anonymous said...

Shame on Kilili and Saipan Chamber of Commerce who played dirty tricks on striking and inserting to manipulate "Federal minimum wages of CNMI and CW programs". Instead of amending CW program of Natural resources act, Kilili could add “CNMI immigration provision from U.S senate immigration reform bill into H.R. 2200”. But he did not. And he expressed striking “CW program to end December 31, 2013” to inserting “CW program to end December 31, 2019”. H.R.2200 is an inhuman act attached to S.256

Anonymous said...

2:14 while I agree with your comment, your NMI prices are interesting.
I do not use the canned gas in the NMI but I do use it for some things in the Phil.
I can of "canned gas" in the Phil. cost equivalent to $1.63(US)
As far as the cost of rice in the Phil, other than the Govt. rice the average low end rice price in the Phil.starts at about $0.38 per lb. regular gasoline comes out to $4.94 per gal. while diesel comes out to $1.63 a gal.
Petroleum products prices at the pumps fluctuate weekly

In many places the Phil workers is getting only 240PhP a day. ($5.58 (US))also many employers make these people work 10 and 12 hours a day 6 days a week with no overtime pay or any benefits.
"If they do not like it finds another job" attitude not much unlike in the NMI.

Anonymous said...

11:53 You are saying that Kilili (with help from others also slipped in an extension to the CW program by the means of what you stated?

If what you say is true I think it is time to vote Kilili out this next election he has turned into a typical US (and NMI) corrupt politician.
Time to start looking for somebody new that is not a recycled reject from the NMI.

Wendy Doromal said...

8:24 I do not believe the extension was put in the law that passed. I read the law on the Thomas site and did not see that. I check with some staffers tomorrow.