There are two federal options available to American Samoa, if Gov. Lolo Matalasi Moliga moves forward with a proposed plan to have the U.S. government provide a subsidy to help pay for federally mandated minimum wage increases, says Congresswoman Aumua Amata, who shared that she also is not against a minimum wage hike.

During last Friday’s cabinet meeting, the governor announced his plan to ask the federal government for a subsidy to help with the minimum wage hikes, with the next 50 cent increase set to go into effect on Sept. 30.  Lolo has instructed Commerce Department director Keniseli Lafaele to draft a proposal for the governor’s review before the end of next month.

Responding to Samoa News inquiries, Amata said the governor “needs a free flow of ideas” to tackle the issue of worker wages. “I am sure the proposal will undergo thorough discussion within ASG before it reaches the Governor's desk at the end of next month,” she said. “The governor mentioned to me that he was considering [a subsidy] as an option but we did not discuss how he planned to approach Washington.”

Asked how the federal government will be able to provide such a subsidy if it’s requested by ASG, she said it could be provided either out of the existing federal Executive Branch resources or by a new appropriation provided by Congress. Additionally, the governor could approach the U.S. Department of the Interior or perhaps the U.S. Department of Labor, since the latter administers the minimum wage law.

Asked if providing a subsidy to American Samoa to fund a wage increase is allowed under federal law, Amata responded, “Nothing in federal law would prohibit the Obama administration from subsidizing American Samoa's minimum wage.”

As to whether providing a subsidy will require Congressional approval, Amata said she is sure that the local Commerce Department is researching whether there are any existing federal programs to which ASG could apply for funding.

“No doubt this is why the [DOC] director has been given until the end of July to produce a proposal.  If there are no existing programs, then ASG would need to approach Congress,” she said. “For a new spending program, Congress would ask the Obama administration for its views so it would be important for ASG to provide a rationale and gain the support of the Obama administration.”

“It is doubtful Congress would enact such a new program without the Administration's support. This is a time consuming process,” she said.

Asked about the the latest development on moving a measure through Congress to either delay the next wage hike or eliminate the escalating clause, Amata responded that the “wheels of government turn particularly slowly when it comes to adopting new programs, so it is important that I continue to work on extending the current moratorium on raising the minimum wage while the Governor pursues his initiative with the Obama Administration.”

“It would be unfortunate if come October 1 we had a rise in the minimum wage without the Governor's proposed subsidy in place,” she said and emphasized, “make no mistake about it, I am not opposed to a rise in the minimum wage.”

“But I believe that we need to take control of our own economic destiny because we are the only ones in a position to know what our wage earners' real needs are, and the capacity of our wage payers is to compensate our workforce,” she pointed out. “While devising a new mechanism to give workers more input into the wage setting process, it may be necessary not only to extend the moratorium but also to revert to the previous system until we can get a new system in place.”

She noted that Tri Marine International is just getting started in American Samoa and should become a major employer replacing many of the jobs lost with the departure of COS Samoa Packing cannery.

Further, Tri Marine is making a large investment to establish their operation and “we must ensure they gain a firm toehold here by not upsetting their budget process by adding unexpected costs.”

“If we are successful in attracting new investors such as Tri Marine, we need to be in a position to give assurances to prospective private employers that we have the power to control some of their cost factors, including land, taxes and wages,” she said.

“As long as such things as minimum wage are determined in Washington rather than in American Samoa, investors are going to be wary about establishing new businesses here,” she said. “If we are forced to pay a minimum wage now new business can’t afford, what have we achieved for our people?”

Tri Marine’s local operations include a locally based U.S. flagged purse seiner fleet and the Samoa Tuna Processors, Inc. cannery.

Amata told Samoa News last month that it’s important for her to meet with all of the players who are involved in the minimum wage issue and when working with other House committees besides her own, “I have to give courtesy to the Chairman and Ranking Member on those other committees whose help we need, but of which I am not a member.”

On the minimum wage, she noted, “we have have different issues to consider: immediate moratorium; reverting back to the status quo, and fixing the mechanism so that our people are a top priority and their voice can be heard,” she said. (See Samoa News edition May 26 for details)