ASG minimum wage analysis completed by DOC
The Commerce Department conducted in the first-quarter of fiscal year 2014 a preliminary analysis of the impact of minimum wage increases on the government — excluding ASCC, ASTCA, ASPA and LBJ Medical Center — using Human Resources Department hourly/salary data as of Aug. 21, 2013.
The government employee industry paid an average straight-time wage of $9.19 per hour to 4,306 ASG employees or an average annual salary of $19,112.37 excluding fringe benefits, according to DOC’s first quarter performance report covering Oct. 1 - Dec. 31, 2013.
Pending final verification of DHR report, it reveals a significant decrease of ASG employees by 8.4% if compared to the DHR Report dated Mar. 13, 2012 of 4,703 employees which was published in the ASG Statistical Year Book 2011.
“Clearly, our preliminary analysis reveals that the increase of the minimum wage to $4.91” and until it reaches the federal level of $7.25 per hour would significantly result in substantial curtailment of employment and cause budget constrains for ASG by significantly increasing the ASG personnel and related cost.
The preliminary analysis report is incorporated into the DOC Position Paper titled, “Impact of the Territory’s Economy if the Minimum Wage increase goes into effect” and presented last November to an official of the U.S. Government Accountability Office conducting the impact study on mandatory wage hikes. (The GAO report is expected to be released in April this year while the next wage hike for the territory is set for Sept. 30, 2015)
Samoa News should point out the minimum wage for federal contract workers has been increased to $10.10 per hour — in accordance with an executive order issued by the U.S. President this week and a bill pending in the U.S. House calls for the wage hike of $10.10 per hour across the board.