Senate approves
resolution calling for suspension of 50 cent hike slated for
May
by Fili Sagapolutele
Samoa News Correspondent
Senators approved
yesterday a Senate Concurrent Resolution requesting that U.S.
Sen. Edward Kennedy and Rep. George Miller "apply their
efforts" in order "to suspend imposition of the $0.50
per hour" effective May 25 for American Samoa.
The resolution,
which has a similar version pending in the House, provides that
the suspension should be in place pending a study and review
of relevant data on the economic impact of the increases on the
territory.
The resolution
supports a bill sponsored by Congressman Faleomavaega Eni that
calls for further increases to be based on the determination
by the Labor Secretary in consultation with the Secretary of
Interior and the governments of American Samoa and CNMI.
According to
Senate President Lolo M. Moliga, who sponsored the resolution,
Gov. Togiola Tulafono has said that once the resolution is approved
by both chambers, then he (governor) will attach his own letter
supporting the suspension, before it is transmitted to Miller
and Kennedy.
Miller and Kennedy
chair the respective U.S. Senate and House committees that have
jurisdiction over the minimum wage issue.
Sen. Tuaolo M.
Fruean said so much have been said about the effects of the wage
increase in the territory but he wants to know what are the actual
impacts, such as the number of job losses on both the government
and the private sector.
He also wants
to know if American Samoa is prepared for a massive layoff if
the next wage hike goes through.
Lolo said Togiola
has informed the Fono leaders that ASG will need to come up with
an additional $4 million in FY 2008 to cover the new wage hike,
and this is money the government does not have in its budget.
Lolo said the
governor has also stated that ASG needs to take into account
the financial condition of the government as it has other obligations,
such as repaying federal money. For example, American Samoa has
to repay $9 million for the Medicare program for LBJ hospital,
federal homeland security grants and other federal grantors.
According to
the Senate President, the governor estimates that ASG will have
to pay back about $20 million to the federal government.
As for the canneries,
Lolo said they are ready to make the necessary changes in their
operations if the next wage hike goes into effect.
According to
the concurrent resolution, at least one cannery is prepared to
implement a plan to offset the wage increase by curtailing discretionary
employee benefits, such as the elimination of night shift differential
pay, restriction of training opportunities, calculating year-end
bonuses at current wage levels prior to the hike, and instituting
allowable adjustments to employee pension plans.
"Thus, it
ironically appears that the mandated wage increase will ultimately
work to the detriment of the employees," the resolution
states. "[F]or American Samoa, loss of the canneries also
jeopardizes the survival of numerous support service enterprises
which depend on the tuna canning plants, either in whole or part,
for their livelihood."
Sen. Pulefaasisina
Tuiasosopo said the resolution needs to be strengthened and concrete
data must be included rather than general information. He said
Senate staff should be assigned to gather the necessary impact
information and other data to be included in the measure before
it is sent to Congress.
Lolo said the
Senate has done all of its research, however, he did call upon
senior Senate staff to work on Pulefaasisina's request.
Senators Tuitele
Fofo Tuitele and Tuiagamoa Tavai said the canneries must be more
forthcoming with information needed by Congress. They also said
that employees deserve fair wages for their work.
With the resolution
approved, it now goes to the House for their review. The House's
version of this resolution has been assigned to the House Commerce
and Retirement Committee, chaired by Rep. Taotasi Archie Soliai.
ALO TAKES
ISSUE WITH FALEOMAVAEGA'S STATEMENTS
Sen. Alo Dr.
Paul Stevenson said a lot of his constituents are employed at
the canneries and he is worried about what could happen to them
because of the next wage hike.
He also said
that media statements by Faleomavaega regarding the canneries
were irresponsible and "very dangerous". He blamed
the congressman for the predicament that the territory is in
right now with regards to the next wage hike.
He said Faleomavaega
was adamant about the first hike and now further increases cannot
be stopped at all.
According to
the Ituau senator, the Congressman cannot save cannery jobs,
and the losses to the business community if the canneries were
to close down.
Faleomavaega
said in a statement last Friday that had the canneries made incremental
wage increases the industry would not be in the position it is
in now.
He also noted
that Miller and Kennedy have determined that they cannot hold
off further minimum wage increases at this time because the canneries
have not cooperated with requests for information about their
operations and profitability.
Reach the
reporter at fili@samoanews.com.
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