The Chamber of Commerce is preparing a response to Gov. Lolo Matalasi Moliga's request for an assessment of the financial impact of minimum wage increases, with the next 50 cent hike per hour effective Sept.30.

In a letter Tuesday this week to Chamber chairman David Robinson, the governor requested an assessment, saying that the federally mandated minimum wage issue will go into effect and require a collaborative effort to develop a territory-wide position.

“This issue directly impacts all businesses as well as our people,” the governor wrote, adding that ASG has been working on its position from the public sector perspective, and he has just sent letters to the two canneries seeking their input.

“Needless to say, the government is cautiously developing its position to counteract any negative impacts on the tuna industry,” the governor said and requested from the Chamber an assessment of the financial impact of restarting the incremental hike of the federal minimum wage by 50 cents until the federal minimum is reached. (The current federal level is $7.25 per hour)

The governor also said that it would assist the government if the Chamber could detail the various strategies to be deployed by its membership to mitigate any negative impact caused by a wage hike in September, if the decision is made to rescind the current moratorium.

“This information will help the government prepare a comprehensive and factual presentation to Congress with regard to the total impact of the federal minimum wage on American Samoa,” he said.

Because time is of the essence, Lolo asked the Chamber to transmit to ASG its position papers by July 10. He thanked the Chamber for their contribution to the local effort to present a territory-wide position that will stimulate, and not stymie, economic development.

“The bottom line of all our efforts is to improve the quality of life for our people and ensure the sustainability and growth of our business community,” he said.

Robinson confirmed that the Chamber has received the governor’s request and is preparing a response for submission to the Executive Branch.

The governor’s request to the Chamber comes three months before the next wage hike takes effect.

The Chamber has been critical of the Lolo Administration for not publicly stating its position on the minimum wage and this was voiced by Robinson during a Chamber general membership meeting in late April this year.

Late last week, Robinson said the Chamber’s position on the minimum wage issue has not changed — and that position is “we should be able to make any increases in wages at the local level,” meaning a re-establishment of the special industry committee to determine a local minimum wage based on our economic conditions.

While there are certain local companies which may be able to afford another 50 cent per hour wage hike, the two canneries are the ones that stand to lose out, as every increase in their cost of production puts them at a further competitive disadvantage with their products compared to their competitors in cheaper cost areas in Asia and other parts of the Pacific, he said.