The president of Saipan's Chamber of Commerce in the Commonwealth of the Northern Marianas says he expects layoffs and reduced work hours following the federal wage hike legislation.
U.S. President George Bush signed the bill into law on May 25 to raise the local minimum wage by 50 cents an hour, two months from now.
Chamber president Juan Guerrero says the wage increase is good for the employees but bad for employers.
He told the Saipan Tribune newspaper not many businesses will be able to sustain paying an extra 50 cents an hour to workers on the minimum wage,
Mr Guerrero also said the wage hike is likely to benefit only those currently earning below US$3.55 an hour.
