The Chamber Means Business
Minimum Wage Petition
Halt Mandated Federal Minimum Wage in American Samoa WE the undersigned residents of the Territory of American Samoa petition the Honorable Barrack Obama, President of the United States to intervene on our behalf to reverse the minimum wage increases that are causing undue economic turmoil and hardship in the territory. We ask that the provisions pertaining to American Samoa in the Fair Minimum Wage Act of 2007 (Public Law 110-28) be repealed and return the process of setting minimum wage rates in the territory to Special Industry Committees.
The Fair Labor Standards Act applies generally to employment within American Samoa as it does to employment within the United States. Prior to July 24, 2007, the minimum wage rates for American Samoa are set by a special industry committee appointed by the U.S. Department of Labor. The Fair Minimum Wage Act of 2007 (Public Law 110-28) now sets minimum wage rates within American Samoa and provides for additional increases in the minimum wage of $0.50 per hour each year on May 25, until reaching the minimum wage generally applicable in the United States. Passage of the Fair Minimum Wage Act of 2007 prompted immediate public outcry with predictions of the total collapse of the economy in American Samoa. It was feared that the tuna canneries, the basis of the economy, would leave or downsize – thus leaving other businesses and government unable to maintain their present employment levels. These predictions have now come to pass. One cannery is in the process of leaving this fall and the second has already downsized by about 20%. This single industry meltdown has caused havoc with the business community and many businesses are facing possible downsizing or closure. The Government is facing severe financial shortfalls as tax revenues decrease and it is predicted that as many as 7,500 people will lose their jobs during this year. The U.S. Department of Labor conducted a study to determine the economic impact of wage increases, but this study was rejected by members of Congress. Instead of waiting for better information, Congress chose to act without further necessary information. This petition seeks to reverse economic hardships resulting from these unrealistic wage increases. There is presently a rush to find ways to replace the canneries with new industry but American Samoa is not an attractive venue for international business, due in great part to the high wages demanded by federal law. The federally imposed minimum wage is several times higher than enforced on neighboring islands. Signatories to this petition maintain that it is inappropriate and unrealistic to apply US mainland wage standards to American Samoa’s small, isolated economy and petition the President of the United States to take action to: 1. Reverse the increases mandated by PL-110-28 leaving only the initial $0.50 per hour increase. 2. Reinstate Special Industry Committee process for determining minimum wages in the territory.
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Comments
I am married to a Samoan. We
I am married to a Samoan. We live in the states and I see nothing good in a future without both canneries running, or something to make up for the lost jobs and lost revenue. My question remains, other than rolling back the wages, is that all that we have looked at?? What other economic stimulus can we use to keep the canneries in Samoa? Maybe the Governor should have used a couple hundred thousand dollars to keep the canneries instead of the Heritage festival in Hawaii, as the economy in Samoa will gain nothing from monies spent in Hawaii. The Governor and Congressman Eni should ONLY be concerned about the people and the economy of Am. Samoa at this time and they both should be brainstorming all facets of the economy and find a way to keep the canneries while making it profitable for them to continue to grow and expand operations while allowing the working men and women to make a little more money. I can't be the only one reading Samoa News and the blogs under the headlines. Indeed we are headed toward some desperate times and the leadership needs to stand up and take some decisive action and fast!!Maybe the Chamber can encourage a Wal-Mart to open a store there as I am sure they have a huge hand in driving the cost of tuna we buy in the states to such low levels that the canneries have to move the product lines to the least expensive place to manufacture which at this time seems to be Thailand. Theres a thought, less tax on tuna brought in to the US from Am.Samoa, which would lead us into a Protectionism conflict as Thailand would be taxed more. Well, maybe we need to start thinking more in that direction across the board here in the US and our territories to protect our jobs and our livelihoods. Please remember that rolling back the wages will not solve the problem, even if only for new hires, because the industry in Samoa is shrinking and who is going to hire the "New Hires". Thank you for allowing me to post!!
There are heaps of people
There are heaps of people that support this without a hint of uncertainty.
However, I paused a moment before signing the document. When I read the portion of the petition that called for a rollback of the last two hikes, I knew there could be trouble. My business hasn't been directly affected by the hikes, as we pay far more than minimum wage. But there are those that think that the rollback will lead to a reduction in pay.
In my opinion, the rollback will only affect new hires. I simply don't see employees standing for a pay reduction. They'd rather move on to a different job.
That said, I support this initiative on the basis of having a special committee handling our business. Fat cats in Washington have no business handing down these kinds of declarations to our island.
Okay... I've started the discussion. Somebody rebuke me.
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