The group that the governor charged with reviewing the impact of the latest minimum wage hike and make suggestions on a way forward has recommended the reinstatement of the Special Industry Committees.
Prior to 2007, the US Department of Labor appointed a special industry committee to review local wage rates and recommend a wage rate based on local economic conditions.
The Federal Minimum Wage Assessment Working Group says in its report that has been submitted to Governor Lolo, the SIC would regularly investigate wages in each industry and recommend increases to the minimum wage to the US Department of Labor when it finds there is low risk of curtailing employment.
Such a review would also include designated ASG agencies.
Another recommendation is to index local minimum wages to changes in the cost of living, using some specific local, regional or national consumer price index or a combination of indices.
The report points out that by statute, an annual minimum wage adjustment would take effect.
The scope of the wage change would be equation driven and propotional to the annual growth in the pegged indices.
The final alternative stated in the report is to schedule increases in the territory’s minimum wage in the form of the current law.
The base wage in each industry would grow by 40 cents per hour every three years until the minimum wage for all industries reaches parity with the federal minimum wage.
The report says this scenario is indiscriminating but fails to account for broader economic impacts.
The chairman of the working group, Director of Commerce Keniseli Lafaele, says in a cover letter to the report, “The federal minimum wage has been a long standing issue for decades and has presented recurring challenges to previous and current administrations in increasingly challenging economic times.
Such challenges underscore the importance of a close working relationship with Congresswoman Aumua Amata.
He added that government and business leaders should communicate these challenges to federal counterparts with respect to potential impacts on jobs and the long term sustainability of the economy.
