25 Jun 2015

American Samoa to ask US to foot wages bill

9:28 am on 25 June 2015

The American Samoa Governor's plan to ask the US government to foot part of the bill to increase the minimum wage, is being dismissed as unrealistic.

The next federally mandated minimum wage rise is due at the end of September, and Governor Lolo Matalasi Moliga has suggested the territory can ask Washington to subsidise the wage hike.

Our correspondent, Monica Miller, says the Chamber of Commerce is doubtful such an agreement will be reached before the September deadline.

"They don't think that this is realistic. They think that it's going to be too late to try and make any changes to the way the minimum wage is set at the moment. And expecting the federal government to provide any assistance to off-set any wage bill, I don't think the Chamber of Commerce expects that to happen."

Monica Miller says it's felt that even if assistance is given, it would only be for government employers, not for the private sector.

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American Samoa. Photo: AFP

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