It Keeps Rolling In...

Nancy Pelosi has once again raised eyebrows with the Democrats' new minimum-wage legislation (H.R. 2), which will increase the federal wage floor from $5.15/hr to $7.25/hr over two years. In addition, the minimum wage will now--for the first time--be applied to all US territories.

All, that is, with the notable exception of American Samoa :

One of the biggest opponents of the federal minimum wage in Samoa is StarKist Tuna, which owns one of the two packing plants that together employ more than 5,000 Samoans, or nearly 75 percent of the island's work force. StarKist's parent company, Del Monte Corp., has headquarters in San Francisco, which is represented by Mrs. Pelosi. The other plant belongs to California-based Chicken of the Sea.

"There's something fishy going on here," said Rep. Patrick T. McHenry, North Carolina Republican.

During the House debate yesterday on stem-cell research, Mr. McHenry raised a parliamentary inquiry as to whether an amendment could be offered that would exempt American Samoa from stem-cell research, "just as it was for the minimum-wage bill."

A clearly perturbed Rep. Barney Frank, the Massachusetts Democrat who was presiding, cut off Mr. McHenry and shouted, "No, it would not be."

"So, the chair is saying I may not offer an amendment exempting American Samoa?" Mr. McHenry pressed.

"The gentleman is making a speech and will sustain," Mr. Frank shouted as he slammed his large wooden gavel against the rostrum.

I hear a lot on Law & Order about avoiding "even the appearance of impropriety," but apparently the concept doesn't resonate with the new Congressional Majority.

Now to be fair, the issue is not really that simple, as this article demonstrates. Having been long exempted from minimum-wage requirements, territories such as American Samoa and the Commonwealth of the Northern Mariana Islands (CNMI) have seen an influx of employers looking to take advantage of the opportunity to lower costs. In the wake of the new legislation, American Samoa may continue to negotiate minimum levels with the federal government through a wage board, while the CNMI is left to swing in the wind. Not surprisingly, they are extremely anxious about what will happen under the Democrats' recently enacted plan:

The bill would increase the islands’ minimum wage to $7.25 over the next four years, compared to the two years and two months it gives other U.S. employers to phase in the increase...

“What business could handle the doubling of their minimum wage in just a few years’ time?” [CNMI spokesperson Melinda Matson] asked. ...

“We’re really concerned that we’re going to have businesses fail and the only safety net that we have is food stamps,” Matson said.

Excellent points, Ms. Matson. Too bad your islands don't have business interests headquartered in Nancy Pelosi's district.

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