Letter to the Editor
February 7, 2007

Since the minimum wage issue was raised in the US House of Representatives recently there have been various opinions expressed in the Territory for and against raising the current minimum wage here to be in line with the new levels in mainland US.

We were caught in a political points scoring match between the Democrats and the Republicans initially, with neither party it seemed having any regard for the economic prosperity of the Territory. It appears that a more rational approach has now been taken and the Territory will probably be excluded from the wage hike and continue to operate under the Special Industries Committees for it’s wage reviews.

The detractors from this position, who thankfully appear to be in the minority, and want the wage levels here increased in line with the mainland, should realize and appreciate the amount of effort and strenuous negotiating that has been undertaken by the Governor, our Congressman, the Department of the Interior, the President of the Senate, the Fono, Government Departments and the Chamber of Commerce to save the Territory from economic devastation which would have occurred if we had been included in the minimum wage bill. The detractor’s odious comparisons of wages paid to senior government officials and themselves are irrelevant and meaningless.

Periodic wage rises are necessary to keep up with inflation particularly for families at the low end of the pay scale as the cost of living and basic commodities continue to rise making life difficult to manage on small incomes. However, wage rises must be kept in line with prevailing economic conditions and moved upwards gradually over a period of time so that they are manageable for both the public and the private sector and they do not lead to an increase in the level of unemployment.

The next minimum wage hearing is scheduled for June this year and preparatory work is now underway to ensure that full consideration is given to the amounts of the wage rises which would accommodate those in need but would not impact adversely on employment, employers and the economy.

The issues impacting on people’s ability to earn what they consider to be an appropriate level of income  are very sensitive and sometimes evoke comments written and said in the heat of the moment. When our economy is strengthened as a result of new investment and development which is being planned by the government and the private sector perhaps it will be easier to review and increase minimum wages on a more regular basis.

To all you detractors out there please be supportive of your leaders who are working assiduously to improve economic conditions and give them more time to pursue new policy reviews and investments that will benefit of all citizens and residents of American Samoa.

David Robinson
President
American Samoa Chamber of Commerce