Congressional
leaders call DOL wage report fundamentally flawed
We
need more data before putting a hold on another 50¢ increase,
Faleomavaega says
by Fili Sagapolutele
Samoa News Correspondent
Two members of
Congress have expressed their "serious disappointment"
with the U.S. Department of Labor's study on the impact of the
increased minimum wage on the economies of American Samoa and
the Commonwealth of the Northern Mariana Islands (CNMI).
In a March 14
letter to U.S. Labor Secretary Elaine Chao, Rep. George Miller
and Sen. Edward M. Kennedy say the DOL study - mandated by Congress
- does not adequately address minimum wage issues, was poorly
researched and in many respects, was fundamentally flawed.
(Miller is chairman
of the House Committee on Education & Labor and Kennedy is
the chairman of the Senate Committee on Health, Education, Labor
and Pensions.)
According to
the lawmakers, the report makes no attempt to evaluate the impact
of the first 50 cent wage hike in 2007 or future increases on
the living standards of working families in American Samoa and
CNMI and as a result, the report entirely fails to address one
of the main issues that Congress required DOL to assess, thereby
depriving residents of the two territories of the full information
that they deserve.
They say the
report "is decidedly one-sided" citing that DOL interviewed
a limited number of government officials, business representatives
and industry lobbyists.
Miller and Kennedy
say these are not the only viewpoints that DOL should have sought.
"The authors
of the report did not obtain the views of workers, their non-government
advocates, or organizations such as social services or churches
that interact with working families on a regular basis,"
the lawmakers say. "This is an incredible oversight in a
report on the impact of a labor policy on living standards and
employment."
They also say
the report failed to independently verify assertions and speculative
statements made by business representatives and instead simply
recorded and repeated their claims.
For example,
they say for American Samoa, DOL had access to a long record
of canneries' testimony before the Special Industry Committee
that any increase in wages would result in a curtailment of employment.
"Given that
this testimony is directly contradicted by the fact that the
canneries have reported 'no' discernible job losses in the wake
of the July 2007 wage increase of 50 cents - the largest single
increase in the history of American Samoa - the claims of future
job losses due to future increases and the stated bases for such
claims should have been carefully scrutinized," the lawmakers
say.
They believe
that if DOL had probed deeper into other cannery statements about
the impact of minimum wage increases, it would have revealed
further apparent contradictions warranting, at the very least,
some further investigation.
Additionally,
they say DOL didn't request the appropriate data on profitability
from the major employers in either territory to independently
test whether further minimum wage increases would likely cause
closures or layoffs.
Miller and Kennedy
say they are concerned that DOL failed to generate any new data
on wage levels, cost of living, or employment conditions in the
two territories. In addition they failed to determine whether
the new wage hike is actually being paid and to evaluate the
impact of the new wages on workers' living standards and rates
of employment.
"The people,
businesses and governments of these two Pacific territories have
a right to expect that the Department of Labor would make every
effort to fully inform Congress of their present economic circumstances,"
they say. "Regrettably, the department failed to undertake
such an effort."
While data shortfalls
were to be expected given the status of data collection in the
territories and the limited time to conduct the study, the two
lawmakers say DOL's report fails to identify all of the relevant
data shortfalls, as Congressional staff had requested, so that
Congress would know how to focus its evaluation of the report
and its subsequent inquiry.
In conclusion,
they say the report fails "to provide Congress with a complete,
meaningful, and reliable analysis of an issue critical to the
working families of American Samoa and the CNMI".
A copy of their
letter was sent to Faleomavaega. In a separate letter to Faleomavaega,
Miller said that despite DOL's failure, he will continue to work
with Faleomavaega on these matters of critical importance to
American Samoa.
"I know
we share a common concern that the people of the territories
receive fair and decent wages for their labor and that the economies
of these territories grow and diversify in a sustainable way,"
he added.
Yesterday, Faleomavaega
wrote to Gov. Togiola Tulafono and the Fono and shared with them
the letter by Miller and Kennedy to Secretary Chao as well as
Miller's letter to him.
Faleomavaega
said that in his meeting with top staffers of both Miller and
Kennedy, there was consensus that the DOL report didn't provide
enough specific data and information to address the serious issues
whether another increase on wages would negatively impact the
standard of living and the cost of living of our workers, especially
those who do not work for the local government."
"No other
leaders in Congress know more about the rights of working men
and women throughout the United States and its territories than
Chairman Miller and Chairman Kennedy," he said.
Faleomavaega
said he and U.S. Sens. Jeff Bingaman, Daniel Inouye, Daniel Akaka
have written a joint letter to Senate Appropriations Committee
Chairman Robert Byrd to amend the current [minimum wage] law
when it comes up on the Appropriations Supplemental bill in May."
"Essentially,
I've tried to work out a compromise language so that at least
for the next two years we will get DOL to do a more comprehensive
review of the economies of both territories," he said. "Until
we know for sure, it is very difficult to determine if another
increase in wages of 50-cents is commensurate with the economies
of American Samoa and the CNMI."
Faleomavaega
suggested that local leaders review carefully the letter from
Miller and Kennedy for further discussion.
"As indicated
in their letters, the bottom line is we need more specific data
and information before we put a hold on another 50-cent increase
on our minimum wage," he said.
Reach the
reporter at fili@samoanews.com.
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