28 Feb 2013

Concerns in American Samoa over Obama's proposal to hike minimum wage

11:41 am on 28 February 2013

The chairman of American Samoa's Economic Advisory Council says President Barack Obama's proposal to increase the federal minimum wage to 9.00 US dollars needs to be discussed by local leaders and the private sector.

David Robinson says otherwise they would see a repeat of the 2007 minimum wage imposition where the territory had little say in the matter.

During his State of the Union address President Obama called on Congress to raise the federal minimum wage from 7.25 to 9.00 US dollars , and automatically adjust it with inflation.

The 50 cents hikes every year in the minimum wage has been delayed for American Samoa until 2015.

Prior to American Samoa's inclusion under the Fair Minimum Wage Act in July 2007, the minimum wage rates for American Samoa were set by a special industry committee appointed by the U.S. Department of Labor.