Yes, I said the U.S. Department of Labor's first minimum wage report was a joke, but that's not what I'm talking about.
It's just that the next 50 cent bump in the CNMI's minimum wage has slipped four months to Sept. 30, 2010, according to this line in the Conference Committee Report, according to the Saipan Tribune: "The conference agreement includes a general provision proposed by the Senate that delays until September 30, 2010, and until September 30 of each year thereafter, scheduled minimum wage increases in American Samoa and the Commonwealth of the Northern Mariana Islands."
That's the one-line I'm talking about, and it makes sense to wait until DOL has had another chance to come up with a serious product based on real data. I reserve the right to scoff again, but for now I agree with the Governor's spin-doctor of jurisprudence that changes should be "based on objective and informed economic studies to properly guide federal wage policy on the islands."
I can't resist noting in passing that this provision seems to have been added quietly, with none of the warbling coming from the Senate when the minimum wage was raised originally.
Gov. Benigno R. Fitial has a point when he says "This also brings some economic relief, especially considering the challenges of federalization and the economic downturn." Four months isn't much anyway, and the Commonwealth is going through some pretty big changes.
Also, if you read the Carbon Copy coming out of Copenhagen, it's clear that energy prices will keep going up. Food prices, shipping rates, gasoline, jet fuel and your CUC bill aren't back to last year's peak, but we've gotten used to the new levels.
People compartmentalize, and while they'll still fill their tank, and not many can afford to go 'off the grid', they're more than willing to resist when other businesses try to recover their costs. In short, while I still favor increasing the minimum wage, I'd like to see what effect it's had so far.
Arrested development
Even the burglars are suffering; they have to make more than one trip: Koblerville church burglarized, again. And, by gosh, we're going to do something about what Department of Public Safety Commissioner Santiago F. Tudela calls "barbaric and intolerable acts". Something like going back to 2002, evidently the last time there was a burglary task force.
Yes, DPS has a lot of officers in the Army Reserve and is undermanned when they are deployed. Still, I'd be less sarcastic if it appeared DPS had acted on its own. Tuesday, KSPN-2's Bob Coldeen reported on his own burglary and several others he had heard of, adding that DPS said they would provide more information Thursday. It's hard to believe they hadn't checked their own statistics before that.
Waiting for Thursday, I visited the DPS website. The TASC/Human Trafficking link didn't even work. It's obvious that, like most CNMI Government websites, it was created and then barely maintained. (Want to check the Sex Offender Registry?) I also stopped by the Criminal Justice Planning Agency, but they only had statistics for one year- 2004. In an email, I politely suggested that they might have forgotten to post other years, but haven't gotten a response yet.
That's history, at least TASC is back in business. In fact, we're told that Lt. Kevin Aldan of the Fire Division will be training 20 police cadets next year.
Uphill, a battle
Maybe we should call it the Northern Marianas College Board of Directed instead of Board of Regents. The Saipan Tribune's latest episode of the NMC soap opera included this choice tidbit from Regent Janet King: "I am presently ordered specifically by the president to 'cease' making comments to the media, because my comments 'undermine' the office of the president, the Board of Regents, and the college community."
Really, I've just been watching, and chatting with a few people who resigned. I don't know enough about the battle lines to chip in. Like many others, I admire the contributions of Sam McPhetres. I was puzzled that he will not have his contract renewed. But I was waiting for him to comment, and he speaks very eloquently for himself.
Really messy surgery
Good news from the Commonwealth Health Center: Public Health Secretary Kevin Joseph Villagomez says new doctors are on the way. "Most of the six physicians will come from the U.S. mainland, he said." (No word on what parts come from elsewhere.)
Maybe I'm being unfair, and either the Secretary or the reporter was having a bad day. For instance, later in the story we get the equally vague "DPH is the largest government agency in terms of hiring nonresident workers, now estimated at over 200. Most are either nurses or doctors."
A milk-curdling cry
Now that I've picked a few nits, it's time to say I don't think life as we know it will end because Gov. Benigno R. Fitial was re-elected. I disagree with some (a lot) of his policies. I think Rep. Heinz S. Hofschneider would probably have been a good Governor. So what?
Why are so many people crying over spoiled, spilled milk? Let's return to reality. The problems don't change because a different man is in office. Honestly, early in the Hofschneider campaign, I saw him standing with some (I said some) supporters and almost shuddered. 'These are the guys who got us to this point,' I thought. I can say the same thing about some Fitial supporters. Strange political bedfellows.
Former Lt. Gov. Timothy P. Villagomez is a prime example. Before I'd heard of Rydlyme, I thought he shouldn't be involved in CUC, simply because he had been so involved in getting it to its present state. Maybe the Aggreko generators would not have been necessary -- and I think they were -- if someone else had been in charge from the beginning of the Fitial Administration. We'll never know.
Many of my friends lost their jobs in 2006. Many other friends would have lost their jobs if Hofschneider had won. For those in political positions, that's life, in the CNMI or anywhere else.
Years ago, I learned that you can stop hyperventilating if you take a deep breath. That's my resolution for the New Year.
Showing posts with label minimum wage. Show all posts
Showing posts with label minimum wage. Show all posts
Saturday, December 19, 2009
Tuesday, July 22, 2008
Tax remittances
It was interesting to see Del. Jonathan Isechal's proposal to begin taxing remittances from Palau.
People have talked about using taxation as a penalty to keep money circulating locally for years, and I've always thought of it as unfair double taxation. States like Texas and Arizona explored the subject, but evidently backed down after predictably strong opposition by the Mexican government.
The Philippine government? Well, they seem to be doing some skimming on their end with a new tax.
Isechal's bill has some merit, just from the standpoint of policing possible criminal activity and funding the government's supervision. There are a lot of other noble goals stated in the bill, but it's obvious the real motive is revenue generation.
That's where I have a problem: "This will not impact majority of the citizens of the republic," Isechal said. Well, yeah, because by definition the people affected are not likely to be voters and can't fight back.
Ain't got nobody
A parallel came up a few days ago when I rhetorically asked on another blog why the local government hadn't raised the CNMI minimum wage above $3.05 an hour. Most people ignored the question, but one fellow said it was because the federal minimum here was $4.05 and nobody was affected.
Exactly. Nobody who is likely to vote fits into the many exceptions. That's the response I was fishing for, not because I expected any results, but just to provide an uncomfortable reminder.
And most people ignored the question.
People have talked about using taxation as a penalty to keep money circulating locally for years, and I've always thought of it as unfair double taxation. States like Texas and Arizona explored the subject, but evidently backed down after predictably strong opposition by the Mexican government.
The Philippine government? Well, they seem to be doing some skimming on their end with a new tax.
Isechal's bill has some merit, just from the standpoint of policing possible criminal activity and funding the government's supervision. There are a lot of other noble goals stated in the bill, but it's obvious the real motive is revenue generation.
That's where I have a problem: "This will not impact majority of the citizens of the republic," Isechal said. Well, yeah, because by definition the people affected are not likely to be voters and can't fight back.
Ain't got nobody
A parallel came up a few days ago when I rhetorically asked on another blog why the local government hadn't raised the CNMI minimum wage above $3.05 an hour. Most people ignored the question, but one fellow said it was because the federal minimum here was $4.05 and nobody was affected.
Exactly. Nobody who is likely to vote fits into the many exceptions. That's the response I was fishing for, not because I expected any results, but just to provide an uncomfortable reminder.
And most people ignored the question.
Saturday, May 24, 2008
Raise the local minimum wage?
How many people are still getting the Commonwealth's minimum wage of $3.05 an hour-- or less?
Sure, by U.S. law the local minimum will be $4.05 on May 26. That is, unless the business makes $500,000 or less. That's a lot of employers, including some of our large foreign investors who spin off subsidiaries. We'll talk about whether they could use local firms some other time.
Farmers and fishermen, historically screwed over by federal wage laws, are also exempt. I haven't kept up, how much is that a month?
Minimum effort
The CNMI Department of Labor helpfully flagged these exceptions in a press release published in the Marianas Variety and the Saipan Tribune. As you can see, DOL didn't attempt to estimate how many workers might be affected. The papers just ran the release and I'm not holding my breath until they do a follow-up.
Everybody has been assuming the Northern Marianas is out of the minimum wage game. Not true, we have the same rights as states to set wage rates as long as they don't conflict with federal laws.
The Legislature could look into this, of course. After all, there was a belated attempt to do something to head off the U.S. minimum. Then again, only contract workers are likely to be affected. No votes there.
Sure, by U.S. law the local minimum will be $4.05 on May 26. That is, unless the business makes $500,000 or less. That's a lot of employers, including some of our large foreign investors who spin off subsidiaries. We'll talk about whether they could use local firms some other time.
Farmers and fishermen, historically screwed over by federal wage laws, are also exempt. I haven't kept up, how much is that a month?
Minimum effort
The CNMI Department of Labor helpfully flagged these exceptions in a press release published in the Marianas Variety and the Saipan Tribune. As you can see, DOL didn't attempt to estimate how many workers might be affected. The papers just ran the release and I'm not holding my breath until they do a follow-up.
Everybody has been assuming the Northern Marianas is out of the minimum wage game. Not true, we have the same rights as states to set wage rates as long as they don't conflict with federal laws.
The Legislature could look into this, of course. After all, there was a belated attempt to do something to head off the U.S. minimum. Then again, only contract workers are likely to be affected. No votes there.
Saturday, May 3, 2008
I tip you not
American Airlines says skycaps, those fellows who carry bags, at Logan Airport in Boston can't take tips.
A tip for a tat, because they lost a $325,000 lawsuit for tips lost when they started charging for the service. The whole spat is tied up with the minimum wage.
"To me, this is retaliation for the fact that we stood up to a big corporation," another American Airlines skycap, Ritson Desrosiers, said yesterday, moments before officials from G2 Services and American Airlines told him not to speak to a reporter.
Ya think?
A tip for a tat, because they lost a $325,000 lawsuit for tips lost when they started charging for the service. The whole spat is tied up with the minimum wage.
"To me, this is retaliation for the fact that we stood up to a big corporation," another American Airlines skycap, Ritson Desrosiers, said yesterday, moments before officials from G2 Services and American Airlines told him not to speak to a reporter.
Ya think?
Thursday, May 1, 2008
Here it comes
Who'd have guessed it? Hard on the heels of S.2739 being sent to President Bush, the Governors of American Samoa and the Northern Marianas are asking to put off this month's minimum wage increase--or for $15 million each.
S.2739 would extend U.S. immigration and some labor laws to the Commonwealth. The CNMI and American Samoa minimum wage will jump fifty cents to $4.05 on May 25.
The money's a good idea, if they can get it, even if it's frittered away as usual.
But really, I'm amazed they're still trying to block the minimum wage. Now they're on the other side, particularly in the Senate. They not only need a majority, they need a large majority to make any changes. It just...won't...happen.
Maybe it's in their contracts with the Saipan and American Samoa Chambers of Commerce.
And they have to bring up that tired, worthless Department of Labor report again.
Pshaw.
S.2739 would extend U.S. immigration and some labor laws to the Commonwealth. The CNMI and American Samoa minimum wage will jump fifty cents to $4.05 on May 25.
The money's a good idea, if they can get it, even if it's frittered away as usual.
But really, I'm amazed they're still trying to block the minimum wage. Now they're on the other side, particularly in the Senate. They not only need a majority, they need a large majority to make any changes. It just...won't...happen.
Maybe it's in their contracts with the Saipan and American Samoa Chambers of Commerce.
And they have to bring up that tired, worthless Department of Labor report again.
Pshaw.
Friday, April 25, 2008
Fed up
Let's blame the feds. “Federalization” is the Marianas' new code word for everybody's dreams and fears. A bastardized modifier that is usually made meaningless by being used as a subject.
Everything will get better if we federalize. Or worse. Federalize what? The Commonwealth Utilities Corporation? Some people are so confused by the constant demagoguery that they actually expect that to happen. Okay, the real subject, when opportunists and obfuscators aren't trying to score points, is U.S. control of local labor and immigration laws.
Sure, I expect this to work about as well as the pacification of Iraq. But who's to blame?
The feds didn't chase Japan Airlines away, they didn't let Continental Airlines abandon us for Guam. They didn't mortgage Saipan's (and the CNMI's) future for the notoriously fly-by-night garment industry.
Look a little closer to home. It's popular to blame the factories, and I wouldn't even attempt to explain their well-documented abuses away. But they're businesses. They buy cheap (including malleable politicians) and sell dear (the bag we're left holding). They use loopholes like Headnote 3(a) and they push laws and regulations to the limit—some beyond the limit if there's no enforcement. They lobby to keep wages low.
The federal government noticed. So we trundled off to Washington and said, look we know the wage is low, but we fixed it ourselves. No need for “federalization”. The law was unpassed as soon as the immediate crisis was over. We lied to the U.S. Congress.
Plan B was a doozy too. Let's abandon our bipartisan support in Washington and hook up with the sleaziest lobbyist we can find. As a reward, we can read about Saipan sweatshops every time we Google Jack Abramoff. Trips, cash and skyboxes for a few well-connected now-discredited panderers thwarted the will of Congress.
A dangerous game, and they play hardball in the big leagues. Like my beloved San Francisco Giants, our steroidal superstar is gone, with nothing left but swelled heads and shrunken gonads. Oh, and Grand Juries.
So there was an election, the roadblocks disappeared and the legislators who were played and blocked re-introduced their bills. They don't believe our promises and they don't trust our lobbyists. They certainly don't expect our politicians to do anything.
Who can blame them?
Everything will get better if we federalize. Or worse. Federalize what? The Commonwealth Utilities Corporation? Some people are so confused by the constant demagoguery that they actually expect that to happen. Okay, the real subject, when opportunists and obfuscators aren't trying to score points, is U.S. control of local labor and immigration laws.
Sure, I expect this to work about as well as the pacification of Iraq. But who's to blame?
The feds didn't chase Japan Airlines away, they didn't let Continental Airlines abandon us for Guam. They didn't mortgage Saipan's (and the CNMI's) future for the notoriously fly-by-night garment industry.
Look a little closer to home. It's popular to blame the factories, and I wouldn't even attempt to explain their well-documented abuses away. But they're businesses. They buy cheap (including malleable politicians) and sell dear (the bag we're left holding). They use loopholes like Headnote 3(a) and they push laws and regulations to the limit—some beyond the limit if there's no enforcement. They lobby to keep wages low.
The federal government noticed. So we trundled off to Washington and said, look we know the wage is low, but we fixed it ourselves. No need for “federalization”. The law was unpassed as soon as the immediate crisis was over. We lied to the U.S. Congress.
Plan B was a doozy too. Let's abandon our bipartisan support in Washington and hook up with the sleaziest lobbyist we can find. As a reward, we can read about Saipan sweatshops every time we Google Jack Abramoff. Trips, cash and skyboxes for a few well-connected now-discredited panderers thwarted the will of Congress.
A dangerous game, and they play hardball in the big leagues. Like my beloved San Francisco Giants, our steroidal superstar is gone, with nothing left but swelled heads and shrunken gonads. Oh, and Grand Juries.
So there was an election, the roadblocks disappeared and the legislators who were played and blocked re-introduced their bills. They don't believe our promises and they don't trust our lobbyists. They certainly don't expect our politicians to do anything.
Who can blame them?
Tuesday, April 22, 2008
Wage pages
The U.S. Department of Labor finally got around to posting its report on the effect of the minimum wage increase on the Commonwealth of the Northern Mariana Islands and American Samoa.I'm not sure when they released it, but it's been on my list of Things to Follow-up since I first read the draft.
I thought the report was basically worthless because it wasn't based on facts, but there was language on page four that gave me hope:
This report is comprised of three subsequent sections. Section Two includes: (a) a summary of the economic situation of American Samoa prior to the initial scheduled minimum wage increase; (b) a discussion of possible impacts observed since the implementation of the initial fifty-centincrease in the minimum wages since July 24, 2007 in American Samoa; and (c) a discussion of projections of possible future impacts. Section Three comprises a similar discussion regarding the CNMI. Section Four presents concluding observations regarding data needs to support future investigations of the impact of minimum wage increases affecting the subject erritories.But there was no Section IV.
Okay, surely the most important--maybe the only important-- part would be completed in the final version. Nope, the sentence I bolded was dropped.
What's going on? I remember stories (thought I bookmarked, sorry) saying the U.S. Congress wanted more information, a better study. Also on page four (emphasis added again):
Just so we get this straight: they couldn't, or wouldn't, even travel to the islands or do surveys. But they did interview 26 people by telephone and email. They won't tell the Congress how they're going to do it better.
It was not feasible to conduct field investigations in connection with this study. Had there been time and resources to conduct survey data collection in the field, travel by the research team to the islands could have been useful. However, meaningful field observations would have required data collection from both employers and households over many successive months in order to discern effects of the initial and subsequently scheduled minimum wage increases. In addition, a systematic data collection effort would have required approval of a survey under the terms of the Paperwork Reduction Act. Given the short reporting timeframe, design and implementation of field surveys were not practical.
If I was in my cynical/paranoid mode... but I'm not, so I'll let it lie for now
Oh, the map. It's from DOL, showing states/jurisdictions that have laws above the minimum, below the minimum and no laws. What's wrong with this picture?
Friday, March 21, 2008
Who's listening anyway (Immigrate Expectations Part II)
S.2739 is in the news bigtime. Locally. I challenge you to find a story in the national media that mentions Saipan or the CNMI and the bill.
The U.S. economy is melting down, Iraq is a mess, and the presidential campaign is in full swings(sic).
OK sure, immigration is part of the national debate and a lot of businesses want a guest worker program. Some states don't want to wait, but we're not the poster child for how to do it.
Has a single Senator or Congressman spoken up opposing U.S. control of CNMI immigration ('federalization')? I don't think so, but correct me if I've missed one. That's understandable, we're the Typhoid Marianas because of Jack Abramoff, Tom Delay, Mark Zachares, et al. The petri dish has been contaminated. I'll let you be the judge of whether the ten-year, er, delay was worth it, but who's going to stick their head up now?
I don't even think they're paying attention to our local media. A few congressional staffers, maybe. We hear from them occasionally, but it always sounds like they've been asked for comment. They defend what's already proposed.
So why all of these stories from local politicians, businesses and business organizations? Who are they trying to influence? Each other?
Oh, and contract workers? I've heard for more than twenty years that there might be a path to naturalization 'someday'. I always thought it was wishful thinking. I still do. It's not about the numbers, that's a drop in the bucket nationally. It's the precedent--which makes it a controversial provision that was dropped from the legislation. It's not about fairness either. Sorry. For most national politicians it's about politics.
Realistically, a retreat on the minimum wage law is much more likely. Again, I'm not talking about fairness, but politics. Republican administrations are always against minimum wages*. I'm amazed any one was surprised when OIA came out for a freeze.
Democrats hold the majority in both houses of Congress, of course, and they are the minimum wage party. Only, I still wonder about that six-month Oldaker Biden & Belair contract. They did some "minimum wage" work back in the Abramoff days, too.
*Case in point: Kansas Republicans blocked raising their state minimum above $2.65 per hour. Surprised? I was (Lawrence Journal World & News)
**I also wondered about David Cohen's resignation from the Office of Insular Affairs. The timing is awfully close. Pulas' line about not wanting the job because it's political gets a new twist. While I still think he was just trying to beat the rush of lame duck Bushketeers waddling to the unemployment line, it's at least a possibility.
Two immediate thoughts: 1) He might have disagreed but not wanted to be disagreeable or, 2) He might have agreed, but not wanted to spoil his image as the godfather of the poor and dispossessed. We'll probably never know unless somebody like TPM Muckrakers gets hold of some emails.
The U.S. economy is melting down, Iraq is a mess, and the presidential campaign is in full swings(sic).
OK sure, immigration is part of the national debate and a lot of businesses want a guest worker program. Some states don't want to wait, but we're not the poster child for how to do it.
Has a single Senator or Congressman spoken up opposing U.S. control of CNMI immigration ('federalization')? I don't think so, but correct me if I've missed one. That's understandable, we're the Typhoid Marianas because of Jack Abramoff, Tom Delay, Mark Zachares, et al. The petri dish has been contaminated. I'll let you be the judge of whether the ten-year, er, delay was worth it, but who's going to stick their head up now?
I don't even think they're paying attention to our local media. A few congressional staffers, maybe. We hear from them occasionally, but it always sounds like they've been asked for comment. They defend what's already proposed.
So why all of these stories from local politicians, businesses and business organizations? Who are they trying to influence? Each other?
Oh, and contract workers? I've heard for more than twenty years that there might be a path to naturalization 'someday'. I always thought it was wishful thinking. I still do. It's not about the numbers, that's a drop in the bucket nationally. It's the precedent--which makes it a controversial provision that was dropped from the legislation. It's not about fairness either. Sorry. For most national politicians it's about politics.
Realistically, a retreat on the minimum wage law is much more likely. Again, I'm not talking about fairness, but politics. Republican administrations are always against minimum wages*. I'm amazed any one was surprised when OIA came out for a freeze.
Democrats hold the majority in both houses of Congress, of course, and they are the minimum wage party. Only, I still wonder about that six-month Oldaker Biden & Belair contract. They did some "minimum wage" work back in the Abramoff days, too.
*Case in point: Kansas Republicans blocked raising their state minimum above $2.65 per hour. Surprised? I was (Lawrence Journal World & News)
**I also wondered about David Cohen's resignation from the Office of Insular Affairs. The timing is awfully close. Pulas' line about not wanting the job because it's political gets a new twist. While I still think he was just trying to beat the rush of lame duck Bushketeers waddling to the unemployment line, it's at least a possibility.
Two immediate thoughts: 1) He might have disagreed but not wanted to be disagreeable or, 2) He might have agreed, but not wanted to spoil his image as the godfather of the poor and dispossessed. We'll probably never know unless somebody like TPM Muckrakers gets hold of some emails.
Thursday, March 6, 2008
Immigrate expectations
I love debate. Back-and-forth, refuting, attacking and defending, marshaling facts to back the opposing sides. It's even better when I haven't made up my mind.
That's where I am on the 'federalization' of immigration. Saipan's a mess, with too many contract workers grabbing for the brass ring. Rota and Tinian too, but not nearly as bad. Local jobseekers are feeling hostile and left out. I'll give you that. However, is U.S. control the best way off of the merry-go-round?
Have its proponents done their homework? Really, the bureaucracy, the backlogs, the leakage and the outright failures should give you pause. Somebody please convince me that the U.S. system, as it stands, doesn't need to be changed. I really want to hear that story.
Meanwhile, the higher minimum wage is percolating through the economy. In the long run, that's what's going to encourage local employment. It already has. The new labor law, whatever you think of it, is also having that effect.
I've read and heard complaints about how Saipan is pictured in Nobodies: Modern American Slave Labor and the Dark Side of the New Global Economy by John Bowe. The book doesn't paint a pretty picture, but it's basically fair. The critics overlook the first three-quarters of the book, written about abuses in the U.S. It's cynical and hypocritical to sip your Florida orange juice and criticize the local system.
The Department of Labor was a cesspool when I used to write about it. Immigration wasn't much better. I'm not there every week any more, but I don't see that today. I do see abuses being reported by the local government, by various federal agencies and by NGO's. I see that in mainland papers, I see it regularly on Guam in the Pacific Daily News and the Marianas Variety.
Okay, tell me a fair system can never be administered locally. We'll have a debate.
Some employers are evil. Everywhere. The only answer is to whack them with a big stick. In our part of the world we have another problem. Some of our investors just don't know about the Occupational Safety and Health Administration and the Fair Labor Standards Act. Ignorance is no excuse, of course, but they need to be educated when they move in. To me, that's at least as important as the briefing new contract workers are getting now.
Saipan Chamber of Commerce President Jim Arenovski and his '4 reasons why S.2483 won't work for us' (Saipan Tribune) got me started on this again*. His and/or Lynn Knight's arguments about the lousy “H” worker system had me nodding in agreement.
All right, so I was looking around for someone to hoot and holler with when I read that the bill would “artificially cause the CNMI's population to decline over the next four and a half years”. Nope, there's nothing artificial about local unemployment while half of the workforce is contract labor. But that's what happens when you try to add one more argument to bolster your cause.
I love Russian tourists. They've got money and they're repeat customers if you treat them right. They usually stay for weeks, not for days. I like the Chinese. That's where the proposed legislation worries me most. Tourism in the U.S. has taken a big hit since 9-11. Surf the internet and you'll see how much. We need new markets, not new roadblocks.
Education looks promising, but tourism is basically it. Schools would have the same visa problems in the federal system.
Factories are just a fantasy on an island with limited population. What's your competitive advantage? Resources? Sea, sand and coconuts, good for a tourism factory (aka hotel) and a small, sustainable fishery. Location? Ha. Low wages, or a temporary loophole? We've been there, and done that.
Here's a challenge for you: try to find out about the Commonwealth on the U.S. Department of Labor website. The Minimum Wage Laws in the States for instance. Other than the minimum wage poster and a few reports, I found nothing. Now tell me the U.S. immigration law will be fine-tuned if it causes problems here.
Coming soon, the debate I've never heard: how much development, and for who?
*Well, there were four in the second paragraph. The body of the article has “First off” and “Secondly” but gets kind of muddled in the end. It probably needs some editing.
That's where I am on the 'federalization' of immigration. Saipan's a mess, with too many contract workers grabbing for the brass ring. Rota and Tinian too, but not nearly as bad. Local jobseekers are feeling hostile and left out. I'll give you that. However, is U.S. control the best way off of the merry-go-round?
Have its proponents done their homework? Really, the bureaucracy, the backlogs, the leakage and the outright failures should give you pause. Somebody please convince me that the U.S. system, as it stands, doesn't need to be changed. I really want to hear that story.
Meanwhile, the higher minimum wage is percolating through the economy. In the long run, that's what's going to encourage local employment. It already has. The new labor law, whatever you think of it, is also having that effect.
I've read and heard complaints about how Saipan is pictured in Nobodies: Modern American Slave Labor and the Dark Side of the New Global Economy by John Bowe. The book doesn't paint a pretty picture, but it's basically fair. The critics overlook the first three-quarters of the book, written about abuses in the U.S. It's cynical and hypocritical to sip your Florida orange juice and criticize the local system.
The Department of Labor was a cesspool when I used to write about it. Immigration wasn't much better. I'm not there every week any more, but I don't see that today. I do see abuses being reported by the local government, by various federal agencies and by NGO's. I see that in mainland papers, I see it regularly on Guam in the Pacific Daily News and the Marianas Variety.
Okay, tell me a fair system can never be administered locally. We'll have a debate.
Some employers are evil. Everywhere. The only answer is to whack them with a big stick. In our part of the world we have another problem. Some of our investors just don't know about the Occupational Safety and Health Administration and the Fair Labor Standards Act. Ignorance is no excuse, of course, but they need to be educated when they move in. To me, that's at least as important as the briefing new contract workers are getting now.
Saipan Chamber of Commerce President Jim Arenovski and his '4 reasons why S.2483 won't work for us' (Saipan Tribune) got me started on this again*. His and/or Lynn Knight's arguments about the lousy “H” worker system had me nodding in agreement.
All right, so I was looking around for someone to hoot and holler with when I read that the bill would “artificially cause the CNMI's population to decline over the next four and a half years”. Nope, there's nothing artificial about local unemployment while half of the workforce is contract labor. But that's what happens when you try to add one more argument to bolster your cause.
I love Russian tourists. They've got money and they're repeat customers if you treat them right. They usually stay for weeks, not for days. I like the Chinese. That's where the proposed legislation worries me most. Tourism in the U.S. has taken a big hit since 9-11. Surf the internet and you'll see how much. We need new markets, not new roadblocks.
Education looks promising, but tourism is basically it. Schools would have the same visa problems in the federal system.
Factories are just a fantasy on an island with limited population. What's your competitive advantage? Resources? Sea, sand and coconuts, good for a tourism factory (aka hotel) and a small, sustainable fishery. Location? Ha. Low wages, or a temporary loophole? We've been there, and done that.
Here's a challenge for you: try to find out about the Commonwealth on the U.S. Department of Labor website. The Minimum Wage Laws in the States for instance. Other than the minimum wage poster and a few reports, I found nothing. Now tell me the U.S. immigration law will be fine-tuned if it causes problems here.
Coming soon, the debate I've never heard: how much development, and for who?
*Well, there were four in the second paragraph. The body of the article has “First off” and “Secondly” but gets kind of muddled in the end. It probably needs some editing.
Friday, February 22, 2008
Samoa for, er, Samoans
A couple of Radio New Zealand International stories on the minimum wage hearing in American Samoa strangely echo what we've been hearing in the CNMI.
There's the American Samoa Chamber of Commerce, of course. They say any future wage increases should be based on a study of the economy. I guess they didn't like that Department of Labor report much either.
They add that, if the increase is not stopped, the canneries "will make some serious decision". Here's the story.
A schoolteacher, one Peni Teo, has a different view which he's planning to share. His argument is that the raise is good for local workers. He says too much emphasis is placed on the canneries and that most of their workers are from Western Samoa.
He's quoted as saying “You’re looking at eighty, eighty five percent of the labour force or employees at the canneries are from Samoa and part of what I’m arguing for is that not only that labour force belongs to Western Samoa, those folks are now living here depleting land resources for families are well as government resources that really belong to the people of American Samoa.”
His view is available here.
There's the American Samoa Chamber of Commerce, of course. They say any future wage increases should be based on a study of the economy. I guess they didn't like that Department of Labor report much either.
They add that, if the increase is not stopped, the canneries "will make some serious decision". Here's the story.
A schoolteacher, one Peni Teo, has a different view which he's planning to share. His argument is that the raise is good for local workers. He says too much emphasis is placed on the canneries and that most of their workers are from Western Samoa.
He's quoted as saying “You’re looking at eighty, eighty five percent of the labour force or employees at the canneries are from Samoa and part of what I’m arguing for is that not only that labour force belongs to Western Samoa, those folks are now living here depleting land resources for families are well as government resources that really belong to the people of American Samoa.”
His view is available here.
Thursday, January 31, 2008
Minimum wage retort
Want to read a good joke? Try downloading U.S. Labor's minimum wage report on American Samoa and the Commonwealth of the Northern Marianas. Don't take my word for it: check it out for yourself.
""
Still with me?
Whether you're for it or against it, this product is lame. The two main points from the summary: "1. Short Time Frame. The reporting time-frame specified in the legislation – no later than 8 months from the date of enactment (May 25, 2007) – did not provide sufficient time to observe actual effects of the minimum wage increases"... and "2. Lack of timely labor market data ...The lack of such data for American Samoa and the CNMI significantly impairs efforts to measure or to project the impacts of scheduled minimum wage increases for these territories. It was not feasible to conduct field investigations in connection with this study."
Minimize the minimum (Panglossolia)
If you're agin raising the minimum wage you read "With both of its major industries declining simultaneously, the CNMI economy is in overall decline, and its current economic situation makes it especially vulnerable to additional shocks. While data are not available to precisely quantify the impact of the recent and scheduled future increases in the minimum wage, it seems likely that the current economic decline may be made worse. General experience in the U.S. and elsewhere has shown that potential adverse employment effects of minimum wage increases can be masked or offset to some degree by an expanding economy that is generating net employment growth. No such offsets can be expected in a declining economy."
Stay the course (Damn the torpedos, full speed ahead)
If you're fer a higher minimum you find this nugget tucked away in the back of the report: "Some recent U.S. research regarding the effects of minimum wage increases suggests some positive employment effects when increases are associated with labor markets characterized by a degree of monopsony power." Dictionaried, monopsony means "A market situation in which the product or service of several sellers is sought by only one buyer."
Don't confuse me with the facts
Strangely, the Saipan Tribune chickened a little. You'd almost think they had a vested interest in a low minimum. My buddy Dick Pierce, the governor's office and the Chamber of Commerce each get a day to wring their hands. Nobody is asked to express another point of view. Huh. I guess the 'majority' opposes the minimum wage as part of that federalization bundle.
Monday's article included this gem "Increasing the CNMI wage to $7.25 an hour, the report said, is comparable to raising the U.S. minimum wage to $16.50 an hour." Not exactly. The report said "The scheduled increase in the minimum wage to $7.25 (by 2015) will likely affect at least 75 percent of wage and salary workers in CNMI. By comparison, in order to directly affect 75 percent of U.S. hourly workers, the minimum wage would need to be raised to $16.50, the 75th percentile mark for wage and salary workers who are paid hourly rates." Lies, damn lies and statistics, the man said.
Tell me what I think
So who can we believe? Try yourself. What did you think about the minimum wage before this shelf-filler came out?
Or, heh, me. I think the jury's still out. I've maintained for years that a higher minimum wage in the CNMI would be great for small businesses because the majority of people would have more disposable income. Unfortunately, higher energy costs have sucked up the loose change from the cushions so we may never know.
There are already too many quotes, but I'll add one last tidbit from the report: "In 1980, the CNMI per capita income of $3,298 was 32.5 percent of U.S. per capita income of $10,134, and in 2000, the CNMI per capita income of $9,151 was 30.7 percent of U.S. per capita income of $29,855.33." It's pretty obvious that the old model wasn't getting us to a U.S. standard of living.
Fifty cents this year? Yeah, maybe, probably. Then how about a real study when there are results to analyze? I'll bet they've already shelved this treewaster and forgotten about the subject.
""
Still with me?
Whether you're for it or against it, this product is lame. The two main points from the summary: "1. Short Time Frame. The reporting time-frame specified in the legislation – no later than 8 months from the date of enactment (May 25, 2007) – did not provide sufficient time to observe actual effects of the minimum wage increases"... and "2. Lack of timely labor market data ...The lack of such data for American Samoa and the CNMI significantly impairs efforts to measure or to project the impacts of scheduled minimum wage increases for these territories. It was not feasible to conduct field investigations in connection with this study."
Minimize the minimum (Panglossolia)
If you're agin raising the minimum wage you read "With both of its major industries declining simultaneously, the CNMI economy is in overall decline, and its current economic situation makes it especially vulnerable to additional shocks. While data are not available to precisely quantify the impact of the recent and scheduled future increases in the minimum wage, it seems likely that the current economic decline may be made worse. General experience in the U.S. and elsewhere has shown that potential adverse employment effects of minimum wage increases can be masked or offset to some degree by an expanding economy that is generating net employment growth. No such offsets can be expected in a declining economy."
Stay the course (Damn the torpedos, full speed ahead)
If you're fer a higher minimum you find this nugget tucked away in the back of the report: "Some recent U.S. research regarding the effects of minimum wage increases suggests some positive employment effects when increases are associated with labor markets characterized by a degree of monopsony power." Dictionaried, monopsony means "A market situation in which the product or service of several sellers is sought by only one buyer."
Don't confuse me with the facts
Strangely, the Saipan Tribune chickened a little. You'd almost think they had a vested interest in a low minimum. My buddy Dick Pierce, the governor's office and the Chamber of Commerce each get a day to wring their hands. Nobody is asked to express another point of view. Huh. I guess the 'majority' opposes the minimum wage as part of that federalization bundle.
Monday's article included this gem "Increasing the CNMI wage to $7.25 an hour, the report said, is comparable to raising the U.S. minimum wage to $16.50 an hour." Not exactly. The report said "The scheduled increase in the minimum wage to $7.25 (by 2015) will likely affect at least 75 percent of wage and salary workers in CNMI. By comparison, in order to directly affect 75 percent of U.S. hourly workers, the minimum wage would need to be raised to $16.50, the 75th percentile mark for wage and salary workers who are paid hourly rates." Lies, damn lies and statistics, the man said.
Tell me what I think
So who can we believe? Try yourself. What did you think about the minimum wage before this shelf-filler came out?
Or, heh, me. I think the jury's still out. I've maintained for years that a higher minimum wage in the CNMI would be great for small businesses because the majority of people would have more disposable income. Unfortunately, higher energy costs have sucked up the loose change from the cushions so we may never know.
There are already too many quotes, but I'll add one last tidbit from the report: "In 1980, the CNMI per capita income of $3,298 was 32.5 percent of U.S. per capita income of $10,134, and in 2000, the CNMI per capita income of $9,151 was 30.7 percent of U.S. per capita income of $29,855.33." It's pretty obvious that the old model wasn't getting us to a U.S. standard of living.
Fifty cents this year? Yeah, maybe, probably. Then how about a real study when there are results to analyze? I'll bet they've already shelved this treewaster and forgotten about the subject.
Sunday, March 18, 2007
Minimum wage (the remix)
From their website: "Today the House Appropriations Committee approved the Emergency Wartime Supplemental. Floor consideration is expected next week."
That's beltway-speak for a closed 'mark-up session' on THE SUPPORTING OUR TROOPS AND VETERANS’ HEALTH CARE ACT (pdf).
I have no clue how this will play in Washington. Evidently the bill includes extra funding for Iraq and Afghanistan but adds a shopping/wish list of Democratic proposals. So it's needed, but another title could be 'How many ways can we piss off the President?'
Tucked way in the bottom, under "OTHER ITEMS" is this:
It looks like we've all got the weekend plus the time difference to figure out what that means.
A few hours later... Radio New Zealand International is reporting that the new legislation includes American Samoa. That can't be good for the chances of a wage board here.
Congressman Faleomavaega Eni Hunkin reportedly says "the House Committee on Education and Labor and the Senate Committee on Health, Education, Labor and Pensions, or HELP, still have control, or jurisdiction, over the minimum wage portion of the Emergency Supplemental Bill."
That's beltway-speak for a closed 'mark-up session' on THE SUPPORTING OUR TROOPS AND VETERANS’ HEALTH CARE ACT (pdf).
I have no clue how this will play in Washington. Evidently the bill includes extra funding for Iraq and Afghanistan but adds a shopping/wish list of Democratic proposals. So it's needed, but another title could be 'How many ways can we piss off the President?'
Tucked way in the bottom, under "OTHER ITEMS" is this:
Minimum Wage: Includes the increase to the minimum wage and related small business tax cuts passed by the House earlier this year.
It looks like we've all got the weekend plus the time difference to figure out what that means.
A few hours later... Radio New Zealand International is reporting that the new legislation includes American Samoa. That can't be good for the chances of a wage board here.
Congressman Faleomavaega Eni Hunkin reportedly says "the House Committee on Education and Labor and the Senate Committee on Health, Education, Labor and Pensions, or HELP, still have control, or jurisdiction, over the minimum wage portion of the Emergency Supplemental Bill."
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