[Congressional Record (Bound Edition), Volume 161 (2015), Part 11]
[House]
[Pages 14921-14923]
[From the U.S. Government Publishing Office, www.gpo.gov]




           AMERICAN SAMOA MINIMUM WAGE INCREASE POSTPONEMENT

  Mr. BISHOP of Michigan. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 2617) to amend the Fair Minimum Wage Act of 2007 to 
postpone a scheduled increase in the minimum wage applicable to 
American Samoa, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2617

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. MINIMUM WAGE FOR AMERICAN SAMOA.

       (a) Minimum Wage.--Paragraph (2) of section 8103(b) of the 
     Fair Minimum Wage Act of 2007 (29 U.S.C. 206 note) is amended 
     to read as follows:
       ``(2) the minimum wage applicable to American Samoa under 
     section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 
     U.S.C. 206(a)(1)) shall be--
       ``(A) the applicable wage rate in effect for each industry 
     and classification as of September 29, 2015; and
       ``(B) increased by $0.50 an hour (or such lesser amount as 
     may be necessary to equal the minimum wage under section 
     6(a)(1) of such Act), beginning on December 31, 2016, and on 
     December 31 of every third year thereafter, until the minimum 
     wage applicable to American Samoa under this paragraph is 
     equal to the minimum wage set forth in such section.''.
       (b) GAO Reports.--Section 8104 of the Fair Minimum Wage Act 
     of 2007 (29 U.S.C. 206 note) is amended--
       (1) in subsection (a)--
       (A) by striking ``September 1, 2011'' and inserting ``April 
     1, 2017''; and
       (B) by striking the second sentence and inserting the 
     following: ``The Government Accountability Office shall 
     submit a subsequent report not later than April 1, 2020.'';
       (2) in subsection (b), by striking ``the study under 
     subsection (a)'' and inserting ``any report under subsection 
     (a)''; and
       (3) by adding at the end the following:
       ``(c) Report on Alternative Methods of Increasing the 
     Minimum Wage in American Samoa.--Not later than 1 year after 
     the date of enactment of this subsection, the Government 
     Accountability Office shall transmit to Congress a report on 
     alternative ways of increasing the minimum wage in American 
     Samoa to keep pace with the cost of living in American Samoa 
     and to eventually equal the minimum wage set forth in section 
     6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
     206(a)(1)).''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Michigan (Mr. Bishop) and the gentleman from the Northern Mariana 
Islands (Mr. Sablan) each will control 20 minutes.
  The Chair recognizes the gentleman from Michigan.


                             General Leave

  Mr. BISHOP of Michigan. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days in which to revise and extend their 
remarks and to include extraneous materials on H.R. 2617.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. BISHOP of Michigan. Mr. Speaker, I yield myself such time as I 
may consume.
  I rise today in support of H.R. 2617. This legislation is simple and 
straightforward. It would delay for 15 months a minimum wage increase 
that will take effect in American Samoa in just 2 days. If this 
increase takes effect, it will harm the very people it was intended to 
help, the hard-working men and women of American Samoa.
  The reason we are here today is also quite simple. We are here 
because the local government in American Samoa is urging us to do this. 
We are here because the employers in American Samoa, who are few and 
far between, are urging us to do this. And, most importantly, we are 
here because the workers in American Samoa are urging us to do this.
  You don't have to take my word for it. Those are the facts that have 
been reported by the nonpartisan Government Accountability Office. For 
years, the territory has been plagued by a weak economy, fewer jobs, 
and higher inflation.
  The tuna canning industry, an essential part of the American Samoa 
economy, has been hit especially hard. According to our own independent 
government watchdog, previous wage increases have forced employers to 
delay expansion, limit overtime, and cut labor costs, which means that 
they have ultimately had to lay off workers. Many fear these tough 
challenges will only get worse if we fail to act now.
  It should be noted that this isn't the first time we have had to take 
this step. When our Democratic colleagues were in control a few years 
back, they passed legislation delaying the arbitrary wage increase they 
set in motion. That effort passed with strong bipartisan support, and I 
expect today's legislation will as well.
  I also want to note that the legislation will help us end a dangerous 
pattern of uncertainty and last-minute delays. Under the bill, the 
Government Accountability Office is required to report on alternatives 
to setting the minimum wage in American Samoa.
  No doubt there are a number of alternatives Congress could consider. 
For example, local leaders have proposed bestowing upon them the 
responsibility for setting wages in their local communities. While this 
is certainly an interesting idea, it is a debate for another day.
  Today let's do the right thing by passing this important legislation.
  In closing, I wish to thank my colleague from American Samoa, 
Delegate Amata Radewagen, for authoring this legislative proposal and 
for her tireless leadership on behalf of her constituents.
  I urge all of my colleagues to stand with the people of American 
Samoa and support this legislation.
  I reserve the balance of my time.
  Mr. SABLAN. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, reducing the income inequality between the people I 
represent in the Northern Mariana Islands and Americans in the rest of 
our Nation is one of my key goals as a Member of Congress.
  Household median income in the Marianas was just $20,000 in the last 
census compared to $53,000 nationwide. For that reason, I have always 
supported the decision made in the 110th Congress to raise the minimum 
wage in the Marianas to the U.S. level in a series of graduated steps.
  When that decision was enacted in Public Law 110-28, the locally set 
minimum wage in the Mariana Islands was just $3.05 per hour and the 
minimum wage had been stuck at that level since the 1990s. Today the 
minimum wage has effectively doubled to $6.05 and will increase to 
$6.55 a year from now.
  That doubling of the minimum wage has occurred during a period of 
economic difficulty for the Mariana Islands. Gross domestic product was 
dropping by 8 percent, 12 percent, 19 percent in the first 3 years of 
minimum wage increase.
  I should say, however, that these drops had nothing to do with the 
wage and everything to do with the loss of manufacturing because of the 
General Agreement of Tariffs and Trade and because of a loss of 
tourism.
  In the most recent year for which GDP data is available for our 
islands, we had economic growth of 4.4 percent, even as the minimum 
wage continued to rise.
  The U.S. Bureau of Economic Analysis says that this economic growth 
reflects a growth in tourism, especially

[[Page 14922]]

an increase in tourism from China. But it also reflects a growth in 
consumption because workers who are paid more can spend more, and that 
is good for the economy.
  So I look forward to next year's increase of another 50 cents in the 
minimum wage in the Mariana Islands. I look forward to reaching the 
national minimum wage in 2019, and I support legislation raising the 
national minimum wage because I have now seen in my district that 
increasing wages can have a positive impact on economic activity and 
improve people's lives.
  At the same time, I recognize that there is such a thing as economic 
reality. Raising the minimum wage too quickly could have a detrimental 
effect, could cause employment to shrink. For that reason, over the 
last 7 years that I have been in Congress, I worked with Members on 
both sides of the aisle to tailor the minimum wage increases to the 
specific economic realities in my district.
  Instead of raising it by 50 cents every year, as the original law 
required, we skipped the increases in 2011, 2013, and this year, 2015. 
We arrived at the decision to stretch out the time of the increases by 
listening to employers on the island and to workers because workers 
also understand that increasing wages too quickly could jeopardize 
their jobs. We also listened carefully to the Government Accountability 
Office experts who look at the effect of these minimum wage increases 
periodically and report back to Congress.
  I think that, so far, as least, we have successfully walked the fine 
line. We have kept the minimum wage increasing--faster than prices, GAO 
tells us--without disrupting the economy.
  I am very grateful to both Democrats here in Congress, who agreed to 
slow down the increases, and to Republicans, who agreed to let the 
minimum wage keep going up. They did so, I think, because of a 
recognition that a relatively isolated island economy might need 
special consideration and because, when it comes to a decision that 
only affects a Member's own district, there is a tradition of deference 
here in Congress to the views of that Member.
  This is a very long way around to saying that I support H.R. 2617, 
the bill now under consideration.
  The gentlewoman from American Samoa (Mrs. Radewagen) has made the 
determination that what is best for her constituents is to delay 
further increases in the minimum wage. She too represents a relatively 
isolated island economy. Her constituents too have incomes much below 
the U.S. average. The specific economic factors in American Samoa are 
not the same as in the Northern Mariana Islands.
  So while a delay for American Samoa may be appropriate, I would not 
want to imply a further delay for the Northern Marianas is called for 
at this time. But I do think that the same courtesy that the House has 
provided to me, when it comes to making a judgment about the well-being 
of the people I represent, should be given to the Delegate from 
American Samoa with respect to her own district.
  For that reason, I urge Members to support passage of H.R. 2617.
  I reserve the balance of my time.
  Mr. BISHOP of Michigan. Mr. Speaker, I yield 10 minutes to the 
gentlewoman from American Samoa (Mrs. Radewagen).
  Mrs. RADEWAGEN. Mr. Speaker, it is an honor and a privilege for me to 
serve the people of American Samoa in the U.S. House of 
Representatives. My home district of American Samoa, an isolated group 
of islands, is 6 hours by plane south of Hawaii.
  Sometimes we jokingly refer to our three main exports as canned tuna, 
military personnel, and NFL players.
  Today I would like to talk about the canned tuna, though. Due to an 
oversight, the Fair Minimum Wage Act, which became law in 2007, 
contained language that stipulated that American Samoa must raise its 
minimum wage by 50 cents every 3 years starting in 2009 until it meets 
the Federal standard.
  Since that time, Congress has graciously granted two waivers to 
American Samoa which prevents them from having to institute the 
increase, and wisely so. Had Congress not granted the waivers, the 
effects would have been absolutely devastating to our local economy, of 
which the tuna canneries comprise 80 percent.
  When the Fair Minimum Wage Act was passed in 2007, American Samoa had 
two canneries on the island. As a direct result of the law and concern 
with future wage increases, in 2009, the day after a deadly tsunami 
struck our island, the cannery operated by Chicken of the Sea relocated 
to Thailand, causing thousands to instantly lose their jobs and 
hundreds shortly followed.
  In Thailand, Chicken of the Sea now pays their workers a mere $1.25 
an hour and are rumored to be cutting wages further in 2016, while the 
workers in American Samoa are paid $4.76 an hour. While $4.76 may not 
seem like a large amount here in the States, one must realize that, in 
American Samoa, the cost of living is drastically different.
  Due to how the lands are owned and managed in American Samoa, there 
is actually no such thing as rent or a mortgage, items that often 
comprise up to one-half of a person's monthly expenses. Because our 
people do not have an expense for housing, $4.76 an hour goes much 
further than it would here in the States.
  While well-intended, the Fair Minimum Wage Act has placed the 
economic well-being of American Samoa in great jeopardy. No one would 
like to see the people of American Samoa prosper and have their wages 
increased more than I.
  However, this is neither the time nor mechanism for such a drastic 
increase, as it would surely be the proverbial nail in the coffin for 
the local economy, as the two canneries that are currently operating 
out of American Samoa have stated the strong possibility of having to 
leave our island because they simply would not be able to compete 
financially against their foreign competitors. One of these canneries 
just opened this year and is trying to establish a toehold in the 
region. Without the extension, this will be very difficult for them.
  Currently, due to many factors, the long-term continuity of the Pago 
Pago-based canneries is now threatened by reduced tuna deliveries and 
supply, which will negatively affect cannery production, impact cannery 
employment and support services, and could possibly destroy American 
Samoa's economy altogether.

                              {time}  1700

  Past decisions by the United States Government have led to the 
current dire situation.
  In 2005, the U.S. Government agreed to reduce fishing opportunities 
by U.S. purse seine vessels on the high seas and within the U.S. EEZ. 
At the same time, the U.S. purse seine fleet contracted from 49 vessels 
in 1994 to 11 in 2007.
  This major shift in the management of the purse seine fishery should 
have been recognized by the United States Government as significant in 
terms of fleet operations and the impact it would have on American 
Samoa. Unfortunately, it seems that the territory was not considered.
  That same year, the U.S. allowed Taiwanese-built vessels to become 
U.S. flagged, thereby receiving the same benefits afforded under the 
South Pacific Tuna Treaty. These new vessels fish farther away from 
American Samoa and predominantly offload their catch in Thailand.
  In 2013, the U.S. Government agreed to pay a combined amount, from 
both government and industry, of approximately $90 million, while 
agreeing to further reduce the United States fishing effort on the high 
seas.
  After that, in 2014, the United States agreed to an inexcusable deal, 
to the detriment of American Samoa, reducing the amount of fishing days 
available in Kiribati waters to the United States fleet from 4,313 to 
just 300 days in just 1 year. Kiribati waters are typically the most 
productive purse seine fishing grounds in close proximity to Pago Pago. 
However, the American Samoa-based purse seine vessels are now forced to 
travel great distances, making Pago Pago canneries less desirable and 
increasing transshipping to foreign ports.

[[Page 14923]]

  In addition, the expansion of the Pacific Remote Islands Marine 
National Monument and the high seas effort limit have further reduce 
the fishing grounds available to the American Samoa-based purse seine 
fleet, lending to the dire situation facing American Samoa's local 
canneries. These are waters that have been fished by our people for 
many centuries.
  Like other small island developing states and territories in the 
Pacific, American Samoa and the fishing industry it supports should be 
afforded special recognition, not crushed by the worst aspects of 
capitalism--and I say this as a devout capitalist.
  Until we begin to safeguard our fishery interests in the region, 
American Samoa's tuna fisheries will continue to wither, creating 
economic ruin in American Samoa, the other Pacific territories, and 
even Hawaii, leaving the United States as a passive observer in the 
world's largest tuna fishery, leaving other nations such as China to 
run roughshod over fisheries to the detriment of not only the people, 
but the environment as well.
  We must reverse some of the missteps the United States has taken over 
the years which have left the American Samoa economy in this highly 
vulnerable position. The closing off of large swaths of ocean, under 
the guise of national monuments, which cover thousands of square miles 
of traditional fishing grounds that our people have used for centuries, 
to the reduction in allotted fishing days that have gone from over 
4,000 to under 500 in just 1 year, this is certainly not the time to 
put further pressure on an industry that is seemingly under attack from 
all sides, a local industry that operates at a loss in comparison to 
its competitors when it comes to labor, due to their longstanding 
relationship with the people of American Samoa, for which we are very 
grateful.
  Mr. Speaker, I have heard some concern about Congress continuing to 
kick the can down the road on this issue. To those, I extend willing 
and eager hands for cooperation and assistance in fixing the mechanism 
by which the wages are set in American Samoa. The playing fields 
between the United States and American Samoa are too drastically 
different to place on the same wage scale, and to keep American Samoa 
tied to the current standard is dangerous and irresponsible. It is my 
plan to use the time granted in the extension to work on a new 
mechanism for setting the minimum wage rate in American Samoa, and I 
happily encourage fellow Members to join me in this mission.
  If there is ever any bill that I introduce that I wish I could vote 
against, this would be it. However, while it is difficult, I also know 
that it must be done. Oftentimes, the things that are the most 
difficult are also the most important, and currently, there is no issue 
more important to the economic well-being of American Samoa than this.
  I respectfully and wholeheartedly ask my colleagues in both the House 
and Senate to support this legislation that is so absolutely critical 
to the economic stability of American Samoa.
  The SPEAKER pro tempore. The time of the gentlewoman has expired.
  Mr. BISHOP of Michigan. Mr. Speaker, I yield the gentlewoman an 
additional 3 minutes.
  Mrs. RADEWAGEN. Without it, Mr. Speaker, I am afraid we will be back 
here in just a few months trying to figure out a way to subsidize what 
is already the most economically challenged territory or State in our 
Nation.
  The tuna canning industry is all we have. There is no Coca-Cola or 
IBM. We have no Silicon Valley there to provide massive revenue and 
employment opportunity to the territory. There aren't numerous military 
and government facilities that provide sources of economic growth. We 
are not surrounded by fellow States that enable us to expand to other 
markets. All we have is the tuna industry, and we are grateful for 
them.
  So again, I graciously ask my fellow colleagues to support this 
unfortunate, yet essential, piece of legislation. If you cannot support 
it, all I ask is that you do not block it, because it would be 
absolutely devastating to our people.
  I want to thank Chairman Kline, Ranking Member Scott, and the 
committee staff for their assistance in getting this measure to the 
floor, as well as the numerous other staff and Members who put in many 
hours of hard work to get us here today.
  Mr. SABLAN. Mr. Speaker, I have no further speakers, and I do urge my 
colleagues to please support H.R. 2617.
  Mr. Speaker, I yield back the balance of my time.
  Mr. BISHOP of Michigan. Mr. Speaker, I yield myself the balance of my 
time.
  Mr. Speaker, as I noted earlier, this effort is supported by local 
leaders in American Samoa. It is supported by employers in American 
Samoa, and, most importantly, it is supported by the working men and 
women of American Samoa.
  Mr. Speaker, I urge my colleagues to support the legislation.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Michigan (Mr. Bishop) that the House suspend the rules 
and pass the bill, H.R. 2617, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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