Halt Mandated Federal Minimum Wage in American Samoa

WE the undersigned residents of the Territory of American Samoa petition the Honorable Barrack Obama, President of the United States to intervene on our behalf to reverse the minimum wage increases that are causing undue economic turmoil and hardship in the territory. We ask that the provisions pertaining to American Samoa in the Fair Minimum Wage Act of 2007 (Public Law 110-28) be repealed and return the process of setting minimum wage rates in the territory to Special Industry Committees.

The Fair Labor Standards Act applies generally to employment within American Samoa as it does to employment within the United States. Prior to July 24, 2007, the minimum wage rates for American Samoa are set by a special industry committee appointed by the U.S. Department of Labor. The Fair Minimum Wage Act of 2007 (Public Law 110-28) now sets minimum wage rates within American Samoa and provides for additional increases in the minimum wage of $0.50 per hour each year on May 25, until reaching the minimum wage generally applicable in the United States.

Passage of the Fair Minimum Wage Act of 2007 prompted immediate public outcry with predictions of the total collapse of the economy in American Samoa. It was feared that the tuna canneries, the basis of the economy, would leave or downsize – thus leaving other businesses and government unable to maintain their present employment levels.

These predictions have now come to pass. One cannery is in the process of leaving this fall and the second has already downsized by about 20%. This single industry meltdown has caused havoc with the business community and many businesses are facing possible downsizing or closure. The Government is facing severe financial shortfalls as tax revenues decrease and it is predicted that as many as 7,500 people will lose their jobs during this year.

The U.S. Department of Labor conducted a study to determine the economic impact of wage increases, but this study was rejected by members of Congress. Instead of waiting for better information, Congress chose to act without further necessary information.

This petition seeks to reverse economic hardships resulting from these unrealistic wage increases. There is presently a rush to find ways to replace the canneries with new industry but American Samoa is not an attractive venue for international business, due in great part to the high wages demanded by federal law. The federally imposed minimum wage is several times higher than enforced on neighboring islands.

Signatories to this petition maintain that it is inappropriate and unrealistic to apply US mainland wage standards to American Samoa’s small, isolated economy and petition the President of the United States to take action to:

1. Reverse the increases mandated by PL-110-28 leaving only the initial $0.50 per hour increase.

2. Reinstate Special Industry Committee process for determining minimum wages in the territory.