Released on: January 31, 2008, 10:27 am

Press Release Author: Public Information and Protocol Office

Industry: Government

Press Release Summary: Governor Benigno R. Fitial yesterday commended Congressman
Eni Faleomavaega (Democrat, American Samoa) for introducing federal legislation to
amend a federal minimum wage law that would otherwise have a very detrimental effect
on the CNMI and American Samoa economies.

Press Release Body: Governor Benigno R. Fitial yesterday commended Congressman Eni
Faleomavaega (Democrat, American Samoa) for introducing federal legislation to amend
a federal minimum wage law that would otherwise have a very detrimental effect on
the CNMI and American Samoa economies.

"I thank Congressman Faleomavaega for prudently introducing H.R. 5154 in the U.S.
Congress," said Fitial. "I am very happy that the underprivileged and
underrepresented U.S. Insular areas have a great champion in Congressman
Faleomavaega."

Faleomavaega's bill proposes to modify existing federal minimum wage law to allow
the U.S. Secretary of Labor to prevent mandated federal minimum wage increases from
damaging the CNMI and American Samoa economies. The bill specifically proposes to
allow the U.S. Secretary of Labor to adjust federal wage increases based on an
objective determination of their potential impact on the island economies, in
consultation with the U.S. Department of Interior and the governments of both the
CNMI and American Samoa.

Faleomavaega's timely bill comes on the heels of a recently released U.S. Labor
Department Report expressing concern about the CNMI economy's ability to sustain
future federal minimum wage hikes amid a slumping economy. The report also reached
a similar conclusion regarding the imposition of further federal minimum wage hikes
on American Samoa, which benefits from a vulnerable tuna canning industry.

Governor Fitial earlier hailed the U.S. Labor report as an objective and rational
justification for a modification of existing federal minimum wage law as applied to
the CNMI and American Samoa.

"This report justifies what this administration and our local business community
have been projecting all along, in view of our current economic situation," Fitial
said. "We are in absolute agreement with the assessment that further scheduled
minimum wage increases for the CNMI are expected to add further challenges to an
already declining economy."

The U.S. Labor report stated that "scheduled minimum wage increases for the CNMI are
expected to add further challenges to an already declining economy." The report went
on to cite pronounced economic weakness in the CNMI's two major industries: tourism
and manufacturing.

Governor Fitial is prepared to submit testimony to support H.R. 5154 and protect the
CNMI economy from further losses.

Fitial hopes the H.R. 5154 can be promptly addressed before the next wage hike takes
place. However, the next federal minimum wage increase for the CNMI is scheduled for
May 25, 2008.

According to Fitial, the CNMI's once promising call center industry has not
developed because of scheduled federal minimum wage hikes and some businesses,
including apparel factories, have already closed down, in part, because of federal
minimum wage hikes in the CNMI.

For more information go to http://www.northern-marianas.com


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Contact Details: Commonwealth of the Northern Mariana Islands
Public Information and Protocol Office
Office of the Governor
Caller Box 10007
Capital Hill
Saipan, MP 96950
Tel: (670) 664-2276
Fax: (670) 664-2290

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