31 Dec 2009

American Samoa businesses still pushing to get rid of minimum wage escalator clause

4:42 pm on 31 December 2009

The new president of the American Samoa Chamber of Commerce, Joey Cummings, says the body will continue to push for the escalator clause in the federally mandated minimum wage legislation to be removed.

Washington decreed in 2007 that minimum wages in the territories would be brought into line with the US mainland, with 50 cents annual increments.

Earlier this month the US Government announced the 2010 increase is to be put back from May until September next year.

But Mr Cummings says the Chamber wants the provision for annual hikes abolished altogether.

"We have got to resolve this. The only satisfactory and successful long term resolution for that is to have the escalator clause removed from the Federal Minimum Wage Act of 2007. We have got to remove that and replace it with something that's administered on a more local level."