By David Lubofsky
Bill 125 aims to lower wages of those who are on welfare or who may qualify for welfare if they decide to go back to work by $2 per hour lower than the minimum wage. You will be called a trainee to justify it though. It is another afront to the most disadvantaged and vulnerable people on Guam while benefiting private businesses on the backs of these people. The 37th legislature chased the homeless away, will arrest the panhandlers, wanted to beat you with a wet stick called caning, now wants to lower your wages if you go to work.
I have a background in vocational rehabilitation on Guam, including job development for people who have disabilities and who have been chronically unemployed. I have worked with many at-risk populations on the island, and it is through these eyes that I oppose this Bill, ahh nonsense.
The author of this Bill, Senator Dwayne San Nicolas, must have a crystal ball as all references within the Bill or proposed results and assertions if this Bill becomes law are not based on research or facts but conjecture. The Bill states reducing wages of the poorest on Guam, defined as training, will reduce unemployment. The author does not say exactly how it will reduce unemployment with any facts. It is clear though that the Bill will not create jobs or even new training options, but instead will provide cheap labor cloaked as training. At the same time Bill 125, if it becomes law, will deprive others of work who seek jobs, but must be paid the Guam minimum wage, not two dollars per hour less per the fed minimum wage as proposed by this Bill. If you owned a company, would you pay two dollars more per hour when you can claim training and pay less?
If jobs are not created, which this Bill will not do, how do you lower unemployment as the author claims? If the only incentive is to pay a lower wage to so-called trainees, then people with work histories will not be hired. They will have to compete with the lower paid trainees The Bill also goes on to incorrectly state that it will stimulate the economy, but no researched facts are provided, just crystal ball statements. How can you stimulate the economy when you lower wages and others seeking employment may not get hired? My gosh, Senator Roy Quinata said he wanted to raise wages to stimulate the economy, but this Bill wants to lower wages to stimulate the economy. WHICH IS IT?
Bill 125 discusses more skilled workers on Guam if this becomes law but does not provide any direction or provisions on how an underpaid employee or trainee will get those skills. There are no employer provisions, no definition of training, no time limits, and no expected results of the training, nor any discussion of hiring these trainees. Employers’ responsibilities are interestingly missing. Are people being trained to push a broom or receiving technical training skills? I guess it can be anything the way the Bill is written. It appears this Bill is aimed at providing a cheap labor source for businesses consisting of people who are struggling to get on their feet. Actually, it more than just appears that it is about cheap labor as the Bill makes it obvious and clearly states, “WILL CATER TO THE NEEDS OF OUR LOCAL BUSINESSES.”
Bill 125 mentions businesses that require intensive skills but at the same time being able to pay less than the minimum wage on Guam if passed to trainees. I do not get this. If intensive skills are defined as part of the job, those workers are always expectedly paid more than the Guam minimum wage. Are we aiming to lower wages of people with technical skills also?
The Bill discusses how lowering wages for trainees will help get employers workers or trainees, so they do not have to hire overseas workers. This is ridiculous as it implies laborers, ahh trainees on Guam should be paid less so companies will not hire foreign workers. Why not set up an apprentice program to get these people trained properly and as they should be with real skills, not making them back door laborers?
Local companies want to hire trained workers, that is why they hire overseas due to Guam labor shortages, and they must show that no such workers exist on Guam before hiring. Do you think a construction company will hire trainees who they must train rather than skilled labor who are ready to tackle the work, being that contracts are on timelines etc. The companies are on the clock. I suggest that the Senator speak to companies who do hire overseas as well as the Dept. of Labor. They must show no such workers exist on Guam. This Bill will not accomplish that. Trainees are not skilled labor that companies seek.
Just let me repeat, why not set up hiring parameters for on-the-job training or apprentice work by truly defining the needs of local businesses and how they can meet the needs of those seeking employment assistance? This takes time and Bill 125 will not accomplish this. Stop with the shortcut legislation.
The lack of research by the author on this Bill is pretty evident when the author discussed and compared Guam to other states trying to justify this crystal ball anti-poor legislation. The author omits significant data. Guam has near the highest cost of living in the country and for sure higher than every state he mentioned in his limited research. Guam is also at the bottom for Gross Domestic Product in the country and again lower than all the states he mentioned. These factors are significant when discussing lowering wages. People cannot pay their bills now and are struggling to get on their feet, but you want to hit them on the head with Bill 125.
Senator Quinata recently stated in his discussion to raise the minimum wage to as much as $15 per hour the following:
“I know that the dollar has definitely been hurting everyone’s pocket,” said Quinata, who explained basic needs are becoming more of a luxury to afford. People should not be starving to go to work, he said. Quinata also said a higher wage would improve the economy.
Bill 125 does just the opposite of what Senator Roy Quinata states. The author is not an economist but seems to make predictions as if he knows more than Senator Quinata or what common sense or empathy for these people would dictate.
I think the intent of this Bill is about catering to local businesses, not about the individuals who need help the most as the author alludes to when he states it will cater to local businesses. This includes the Bill’s author’s own business.
Another issue with this Bill is that it states individuals must be unemployed for 6 months and eligible for welfare assistance. How does one determine if they are eligible or not if they are not receiving it? Bill 125 leaves it hanging. It is not clear. It should also be made clear that any increase in income by those who may qualify as trainees may drop them from welfare, the very factor that made them eligible for work or training under this Bill. The incentive to work is not in sub- wages but would be in regular competitive wages and a real job, which they deserve, and as everyone else receives. Why treat these people any differently than others?
It is my opinion that this poorly researched and written Bill is another example of taking advantage of the most vulnerable on Guam, making them struggle further as second-class citizens. If you want to improve work opportunities then do it with employer incentives, such as with taxes or monitored, established on-the-job training programs, not lowering wages for people who cannot even afford to buy milk for their kids. Let us not forget, as stated, this Bill will also deprive others of jobs when businesses go for cheap labor with no controls, guidelines, and NO ACCOUNTABILITY.
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David Lubofsky is a resident of Tamuning
2 Comments
Chris
07/02/2023 at 5:35 PM
Universal Basic Income.
Papalatung
07/03/2023 at 4:20 AM
The island crab mentality legislation.