Скачать презентацию presents Dr Maria Claret Mapálad-Ruane Professor of Скачать презентацию presents Dr Maria Claret Mapálad-Ruane Professor of

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presents: presents:

Dr. Maria Claret Mapálad-Ruane Professor of Economics, University of Guam Dr. Maria Claret Mapálad-Ruane Professor of Economics, University of Guam

Which Hourly Wage Rate? (Maria) Claret M. Ruane, Ph. D. University of Guam Professor Which Hourly Wage Rate? (Maria) Claret M. Ruane, Ph. D. University of Guam Professor of Economics, School of Business and Public Administration Resident Development Economist, Pacific Center for Economic Initiatives [email protected] uog. edu

Which Hourly Wage Rate? 1 A FAMILY SIZE (A=adult; C=child/ren) 1 A + 2 Which Hourly Wage Rate? 1 A FAMILY SIZE (A=adult; C=child/ren) 1 A + 2 A + 1 C 2 C 3 C 2 A 1 C 2 C Current Federal and Guam Minimum Wage (since July 24, 2009) POVERTY WAGE Wage rate required to meet the poverty threshold using 48 CONUS states plus 20% cost differential on Guam $7. 25 hourly / $15, 080 annually 6. 89 9. 13 10. 67 MINIMUM WAGE ADJUSTED 1 Adjusted to keep pace with overall price increase since Q 2 2009 (+10. 44% increase on Guam overall CPI) 10. 66 13. 43 15. 81 $8. 77 hourly $18, 242 annually $10. 10 hourly / $21, 008 annually PROPOSED FEDERAL MINIMUM WAGE PLUS 20% COST DIFFERENTIAL ON GUAM 2013 Median Wage Rate on Guam 8. 87 $16, 661 annually PROPOSED FEDERAL MINIMUM WAGE HOUSING WAGE http: //nlihc. org/oor/2014 wage rate required to afford a 2 BD rental at fair market rate, FMR) Based on current MLS listing, 40% percentile of 2 BD rentals on Guam is $850 per month 13. 48 $8. 01 hourly MINIMUM WAGE ADJUSTED 2 Adjusted to keep pace with price increases in food, housing, utilities, fuel, etc. since Q 2 2009 (+21% increase on Guam overall CPI) LIVING WAGE http: //www. livingwage. mit. edu wage rate required to meet minimum standards of living, to be the sole income-earner and provide for the family 2 A + 3 C $12. 12 hourly $25, 210 annually 10. 07 19. 74 27. 20 33. 44 16. 71 21. 85 25. 13 27. 02 $17. 31 hourly $36, 005 annually $12. 23 hourly / $ 25, 239 Calculations by C. Ruane (April 9, 2014); Multiple references were used to prepare this table (please email [email protected] uog. edu for details)

Joseph P. Bradley Senior Vice President & Chief Economist, Bank of Guam Joseph P. Bradley Senior Vice President & Chief Economist, Bank of Guam

Guam Wage and Compensation Forum 2014 ___ ECONOMY presented by Joseph P. Bradley SVP/Chief Guam Wage and Compensation Forum 2014 ___ ECONOMY presented by Joseph P. Bradley SVP/Chief Economist Bank of Guam April 10, 2014

Guam’s Payroll Employment – QIV: 2013 • There were 61, 840 jobs filled – Guam’s Payroll Employment – QIV: 2013 • There were 61, 840 jobs filled – Many people are counted more than once because they have more than one job • The private sector accounts for 74. 8% of all jobs

Total Payroll Employment, by Industry AGRICULTURE, 160, 0% Fourth Quarter, 2013 CONSTRUCTION, 7, 120, Total Payroll Employment, by Industry AGRICULTURE, 160, 0% Fourth Quarter, 2013 CONSTRUCTION, 7, 120, 11% MANUFACTURING, 1, 420, 2% LOCAL GOVERNMENT, 11, 570, 19% TRANSPORTATION/PUBLIC UTILITIES, 4, 810, 8% FEDERAL GOVERNMENT, 4, 000, 6% RETAIL TRADE, 11, 530, 19% SERVICES, 16, 450, 27% WHOLESALE TRADE, 2, 250, 4% FINANCE/INSURANCE/REAL ESTATE, 2, 530, 4%

Guam’s Payroll Employment – QIV: 2013 • There were 61, 840 jobs filled – Guam’s Payroll Employment – QIV: 2013 • There were 61, 840 jobs filled – Many people are counted more than once because they have more than one job • The private sector accounts for 74. 8% of all jobs – Females fill 43. 5% of all jobs, but 52. 5% of all public sector jobs • 81. 2% of the jobs filled by females are in retail trade, the service industry or government – Males fill 56. 5% of all jobs, but 59. 6% of all private sector jobs • 81. 5% of the jobs filled by males are in construction, retail trade, the service industry or government

Female Male AGRICULTURE; 20 CONSTRUCTION; 360 MANUFACTURING TRANSPORTATION /PUBLIC UTILITIES; ; 350 1, 840 Female Male AGRICULTURE; 20 CONSTRUCTION; 360 MANUFACTURING TRANSPORTATION /PUBLIC UTILITIES; ; 350 1, 840 AGRICULTURE; 140 LOCAL GOVERNMENT; 5, 370 LOCAL GOVERNMENT; 6, 200 RETAIL TRADE; 6, 120 CONSTRUCTION; 6, 760 MANUFACTURIN G; 1, 070 FEDERAL GOVERNMENT; 2, 030 FEDERAL GOVERNMENT; 1, 970 TRANSPORTATIO N/PUBLIC UTILITIES; 2, 970 SERVICES; 8, 920 WHOLESALE TRADE; 720 RETAIL TRADE; 5, 410 SERVICES; 7, 530 FINANCE/INSURA NCE/REAL ESTATE; 1, 770 FINANCE/INSURA WHOLESALE NCE/REAL TRADE; 1, 530 ESTATE; 760

Private Production Jobs – QIV: 2013 • Out of 46, 270 private sector jobs Private Production Jobs – QIV: 2013 • Out of 46, 270 private sector jobs filled, 38, 500 (83. 2%) were in non-supervisory positions – Those are the jobs for which we have average earnings and hours worked data – These data show that females tend to concentrate in lower-earning industries than do males • 22. 8% of female jobs are in retail trade, where average weekly earnings are the lowest, at $345. 07 • 28. 0% of female jobs are in the service industry, where average weekly earnings are the fourth lowest, at $429. 47 • (30. 4% are in the public sector, for which I do not have comparable earnings data, but they are likely higher)

Private Production Jobs – QIV: 2013 • Out of 46, 270 private sector jobs Private Production Jobs – QIV: 2013 • Out of 46, 270 private sector jobs filled, 38, 500 (83. 2%) were in non-supervisory positions – Those are the jobs for which we have average earnings and hours worked data – These data show that males tend to concentrate in higher-earning industries than do females • 15. 5% of male jobs are in retail trade, where average weekly earnings are lowest, at $345. 07 • 25. 5% of male jobs are in the service industry, where average weekly earnings are fourth lowest, at $429. 47 • 19. 3% of male jobs are in construction, where average weekly earnings are second highest, at $605. 12 • 21. 2% of male jobs are in the public sector

Earnings Disparities – QIV: 2013 • At this juncture, the numbers become more tenuous, Earnings Disparities – QIV: 2013 • At this juncture, the numbers become more tenuous, since I have to apply production worker earnings to all male and female jobs – Thus, it is estimated that males’ average weekly earnings are 13. 3% higher than females’ – This, though, appears to be related more to industrial concentrations instead of any pattern of discrimination – However, keep in mind that these figures are rough estimates, and by no means conclusive • I can, though, talk about earnings disparities over time

The Minimum Wage • A hot topic, especially since President Obama brought it up The Minimum Wage • A hot topic, especially since President Obama brought it up in the 2013 State of the Union – Little chance it will pass Congress, though, making it a big campaign issue this year • Wage rates don’t matter; it is what you can buy with those wages that is important • The minimum wage in Guam, adjusted for inflation, has not fared very well over the years – It’s has less than half the purchasing power that it had 30 years ago

The Minimum Wage • A hot topic, especially since President Obama brought it up The Minimum Wage • A hot topic, especially since President Obama brought it up in the 2013 State of the Union – Little chance it will pass Congress, though, making it a big campaign issue this year • Wage rates don’t matter; it is what you can buy with those wages that is important • The minimum wage in Guam, adjusted for inflation, has not fared very well over the years – It’s has less than half the purchasing power that it had 30 years ago – A $10. 10 minimum wage would get us back to where we were in the middle of 1992

Conclusion • I hope that this has been informative (What did you expect in Conclusion • I hope that this has been informative (What did you expect in five minutes? ) • I also hope that it stimulates discussion and, eventually, action

Gary A. Hiles Chief Economist, Department of Labor (Gov. of Guam) Gary A. Hiles Chief Economist, Department of Labor (Gov. of Guam)

April 10, 2014 Wage and Compensation Forum Guam Women’s Chamber of Commerce Marriott Resort April 10, 2014 Wage and Compensation Forum Guam Women’s Chamber of Commerce Marriott Resort Hotel Gary A. Hiles Chief Economist, Department of Labor Bureau of Labor Statistics

Outline of Presentation Sources of Guam Statistics Gender Gap? - Income Influenced by: Work Outline of Presentation Sources of Guam Statistics Gender Gap? - Income Influenced by: Work – Labor Force Characteristics Employment by Industry & Sector Education Level & Occupation Women’s Earnings Minimum Wage Proposal Impact Flows of Funds and Business Revenue Sources Government Employment Trends Recommendation for Additional Research – More Census 2010 Cross-tabulations Comments Requested

Review of Key Guam Economic & Statistics Sites • • www. dol. guam. gov Review of Key Guam Economic & Statistics Sites • • www. dol. guam. gov Department of Labor, Bureau of Labor Statistics www. visitguam. org Guam Visitors Bureau www. bsp. guam. gov Bureau of Statistics & Plans www. bbmr. guam. gov Bureau of Budget & Management Research (BBMR) • www. guamopa. com The Office of Public Accountability • www. investguam. com Guam Economic Development Authority

Review of Key Guam Statistics Resources Federal Statistics (Includes Guam) • U. S. Department Review of Key Guam Statistics Resources Federal Statistics (Includes Guam) • U. S. Department of Commerce, Census Bureau • www. census. gov Economic, Population & County Business Patterns • • U. S. Department of Labor, Bureau of Labor Statistics www. bls. gov Data query & report generation wages. Bureau of Economic Analysis (BEA) www. bea. gov Gross Domestic Product Statistics

Website – GUAM DOL - BLS Website – GUAM DOL - BLS

Website – GUAM DOL - BLS Website – GUAM DOL - BLS

Labor Force Characteristics Adult Latest Men Women Period Unemployment Rate- Guam 8. 4%Sept. 2013 Labor Force Characteristics Adult Latest Men Women Period Unemployment Rate- Guam 8. 4%Sept. 2013 Unemployment Rate - U. S. 6. 2%Mar. 2014 Men 16+ Women 16+ Percent of Employment - Guam 51. 3% 46. 1%Sept. 2013 Percent of Employment - U. S. 53. 1% 46. 9%Mar. 2014

Employment by Industry, Sector & Sex Female Agriculture Male 14. 3% 85. 7% 5. Employment by Industry, Sector & Sex Female Agriculture Male 14. 3% 85. 7% 5. 1% 94. 9% Manufacturing 24. 6% 75. 4% Transportation & P. Utilities 38. 3% 61. 7% Wholesale Trade 32. 0% 68. 0% Retail Trade 53. 1% 46. 9% Finance, Ins. & Real Estate 70. 0% 30. 0% Services 45. 8% 54. 2% Total Private 40. 4% 59. 6% Federal Government 49. 3% 50. 8% Government of Guam 53. 6% 46. 4% Total 43. 5% 56. 5% Construction

Educational Attainment by Age & Sex Table 2 -11. Educational Attainment and Sex by Educational Attainment by Age & Sex Table 2 -11. Educational Attainment and Sex by Age: 2010 NOTE: For information on confidentiality protection, nonsampling error, and definitions, see www. census. gov/prod/cen 2010/doc/dct 1 gu. pdf. Characteristic EDUCATIONAL ATTAINMENT Total Population 18 years and over 18 to 24 years 107, 046 . . . Less than 9 th grade 25 to 29 years 17, 793 30 to 34 years 10, 746 35 to 44 years 45 to 54 years 55 to 64 years 65 years and over 10, 346 23, 063 20, 275 14, 076 10, 747 7, 359 440 412 413 1, 100 1, 144 1, 353 2, 497 . . . 9 th to 12 th grade, no diploma 15, 336 3, 907 1, 623 1, 679 3, 042 2, 231 1, 484 1, 370 . . . High school graduate, GED, or alternative credential 37, 404 7, 228 3, 705 3, 334 8, 156 7, 207 4, 609 3, 165 . . . Some college or associate's degree 28, 053 5, 503 3, 406 2, 841 5, 995 5, 239 3, 339 1, 730 . . . Bachelor's degree 14, 182 669 1, 385 1, 566 3, 529 3, 316 2, 332 1, 385 4, 712 46 215 513 1, 241 1, 138 959 . . . Graduate or professional degree . . . Percent high school graduate, GED, or alternative credential; or higher 75. 6 81. 1 79. 8 82. 0 83. 4 79. 8 17. 7 4. 0 14. 9 20. 1 20. 7 22. 0 23. 4 Females 18 years and over 600 78. 8 . . . Percent bachelor's degree or higher 52, 492 8, 334 5, 315 5, 195 11, 149 64. 0 18. 5 9, 696 7, 067 5, 736 1, 576 . . . Less than 9 th grade 4, 010 193 206 480 569 780 . . . 9 th to 12 th grade, no diploma 7, 285 1, 764 763 797 1, 361 1, 057 774 769 . . . High school graduate, GED, or alternative credential 17, 255 3, 121 1, 650 1, 508 3, 678 3, 351 2, 325 1, 622 . . . Some college or associate's degree 13, 621 2, 816 1, 746 1, 438 2, 948 2, 427 1, 510 736 . . . Bachelor's degree 7, 870 416 821 925 1, 992 1, 752 1, 209 755 . . . Graduate or professional degree 2, 451 24 129 321 690 540 469 278 . . . Percent high school graduate, GED, or alternative credential; or higher 78. 5 76. 5 81. 8 80. 7 83. 5 83. 2 78. 0 59. 1 . . . Percent bachelor's degree or higher 19. 7 5. 3 17. 9 24. 0 24. 1 23. 6 23. 7 18. 0 Source: U. S. Census Bureau, 2010 Census Guam

CENSUS 2000 INCOME STATISTICS - Significant Income Difference by Gender – Reduced with Full-Time CENSUS 2000 INCOME STATISTICS - Significant Income Difference by Gender – Reduced with Full-Time Work Comparisons Income in 1999 Median Mean Males $21, 548 $28, 794 Females $15, 461 $20, 232 Unweighted Average: $18, 505 $24, 513 % of Mens 71. 8% 70. 3% % of Population: 83. 6% 82. 5% Population $23, 225 $29, 652 Females $21, 387 $25, 733 92. 1% 86. 8% LABOR FORCE Usually worked 35 or more hours per week Percent of Population:

As of April 2, 2014 • Bill Summary & Status: Motion to proceed to As of April 2, 2014 • Bill Summary & Status: Motion to proceed to consideration of measure made in Senate. • 113 th Congress S. 1737 • Minimum Wage Fairness Act – Amends the Fair Labor Standards Act of 1938 (FLSA) to increase the federal minimum wage for employees to: (1) $8: 20 an hour beginning on the first day of the sixth month after the enactment of this Act, (2) $9. 15 an hour beginning one year after the date of such initial increase, (3) $10. 10 an hour beginning two years after such date, and (4) the amount determined by the Secretary of Labor (based on increases in the Consumer Price Index) beginning three years after such date and annually thereafter.

Number of Employees by Minimum Wage Threshold Summary Total: Mean Less than ALL WORKERS: Number of Employees by Minimum Wage Threshold Summary Total: Mean Less than ALL WORKERS: Wage $8. 20 $9. 15 $10. 10 Private Sector Federal Government (ex. Non. App) Government of Guam Percent of Private Sector Percent of Total Guam U. S. Overall - Directly Affected U. S. Overall - Indirectly Affected Difference: (Additional Indirect) 46, 170 2, 968 11, 835 Source: Guam - Bureau of Labor Statistics, U. S. Data - Economic Policy Institute $13. 65 28. 27 19. 78 7, 840 0 408 17% 14% 17, 450 0 955 38% 30% 22, 363 30 1478 48% 39% 13% 21% 8%

Number of Employees by Minimum Wage Threshold By Occupation Less Number SOC Mean Less Number of Employees by Minimum Wage Threshold By Occupation Less Number SOC Mean Less than ALL WORKERS - ALL SECTORS Less than $8. 20 $9. 15 $10. 10 Occupational Title Employed Wage 0 Total All Occupations 46, 170 $13. 65 7, 840 17, 450 22, 363 11 Management Occupations 4, 374 $27. 63 75 183 290 13 Business and Financial Operations Occ. 1, 325 $20. 48 35 74 124 15 Computer and Mathematical Occ. 400 $19. 71 15 34 48 17 Architecture and Engineering Occ. 598 $24. 71 4 10 16 19 Life, Physical, and Social Science Occ. 60 $22. 47 0 1 3 21 Community and Social Services Occ. 170 $14. 47 17 39 48 23 Legal Occupations 108 $22. 52 8 18 23 25 Education, Training, and Library Occ. 626 $12. 08 92 196 250 27 Arts, Design, Entertainment, Sports, … 561 $12. 74 90 201 256 29 Healthcare Practitioners and Tech… 834 $24. 92 29 67 109

Continued by Occupation Less ALL WORKERS - ALL SECTORS than Number SOC Occupational Title Continued by Occupation Less ALL WORKERS - ALL SECTORS than Number SOC Occupational Title 31 Healthcare Support Occupations Mean $8. 20 $9. 15 $10. 10 Employed Wage 563 $11. 94 59 129 205 33 Protective Service Occupations 1, 156 $8. 38 407 913 1, 104 35 Food Preperation and Serving-Related. 6, 324 $8. 64 2, 238 4, 834 5, 696 37 Building & Grounds Cleaning & Maint… 2, 825 $8. 87 956 2, 050 2, 408 39 Personal Care & Service Occupations 1, 592 $10. 59 405 875 1, 100 41 Sales and Related Occupations 4, 189 $10. 28 962 2, 225 2, 884 43 Office & Administrative Support Occ. 8, 110 $11. 85 1, 341 2, 927 3, 861 47 Consturction & Extraction Occupations 5, 065 $13. 30 239 512 731 49 Installation, Maintenance, and Repair… 2, 859 $13. 64 285 633 932 51 Production Occupations 1, 440 $11. 77 284 613 778 53 Transportation & Material Moving Occ. 2, 984 $13. 89 529 1, 175 1, 522

TOP TEN AFFECTED OCCUPATIONS Less Mean Less than Number Less than $8. 20 $9. TOP TEN AFFECTED OCCUPATIONS Less Mean Less than Number Less than $8. 20 $9. 15 $10. 10 TOP TEN Employed Wage 6, 324 $8. 64 2, 238 4, 834 5, 696 8, 110 $11. 85 1, 341 2, 927 3, 861 3 35 Food Preperation and Serving-Related. Office & Administrative 43 Support Occ. Sales and Related 41 Occupations 4, 189 $10. 28 962 2, 225 2, 884 4 37 Building & Grounds Cleaning & Maint… 2, 825 $8. 87 956 2, 050 2, 408 5 2, 984 $13. 89 529 1, 175 1, 522 1, 156 $8. 38 407 913 1, 104 7 53 Transportation & Material Moving Occ. Protective Service 33 Occupations Personal Care & Service 39 Occupations 1, 592 $10. 59 405 875 1, 100 8 49 Installation, Maintenance, and Repair… 2, 859 $13. 64 285 633 932 9 51 Production Occupations 1, 440 $11. 77 284 613 778 47 Consturction & Extraction Occupations 5, 065 $13. 30 239 512 731 Most NAICS Affected 1 2 6 10

Minimum Wage Impact & Women • Women in the workforce are more highly concentrated Minimum Wage Impact & Women • Women in the workforce are more highly concentrated in low-wage sectors such as personal care and healthcare support occupations. • Women account for more than half (55 percent) of all workers who would benefit from increasing the minimum wage to $10. 10 The Impact of Raising the Minimum Wage on Women March 2014 The White House

Flow of Funds to Guam FY 2010 Flow of Funds to Guam FY 2010

Business Revenue by Class of Customer • Source: 2007 Guam Economic Census Revenue by Business Revenue by Class of Customer • Source: 2007 Guam Economic Census Revenue by Class of Customer Local Government 4% All other customers 11% Federal Government 8% Local Residents 36% Construction firms 12% Visiting tourists 16% Retailers or wholesalers 14%

Business Revenue by Sector Business Revenue by Sector

Economic Census Summary 2002 & 2007 Total for all sectors Number of establishments Sales, Economic Census Summary 2002 & 2007 Total for all sectors Number of establishments Sales, receipts, revenue ($1, 000) Annual payroll ($1, 000) Number of Employees Class of customer All classes of customer Local residents Visiting tourists Retailers or wholesalers Construction firms Federal Government Local Government All other customers not specified 2002 2, 926 4, 591, 828 846, 256 43, 104 2007 % Change 3, 143 6, 244, 456 1, 100, 598 52, 394 7. 4% 36. 0% 30. 1% 21. 6% Percent 100. 00 35. 80 15. 70 13. 80 12. 30 7. 60 4. 00 10. 70

1. 40 Total Employment 1984 to 2012 Guam and U. S. National Data NAICS 1. 40 Total Employment 1984 to 2012 Guam and U. S. National Data NAICS 91 - Total Federal Govt Employment Guam 9, 000 8, 000 1. 20 1. 00 6, 000 0. 80 5, 000 0. 60 4, 000 3, 000 0. 40 2, 000 0. 20 1, 000 0 0. 00 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Employment Index 7, 000

Thanks • Thank you for responding to our surveys. • 2012 Economic Census publication Thanks • Thank you for responding to our surveys. • 2012 Economic Census publication is scheduled for release April 29, 2014. • Your comments and ideas are solicited. gary. [email protected] guam. gov • You may also submit comments on our website: www. dol. guam. gov

Roseann M. Jones, Ph. D. Professor of Economics, University of Guam (See website for Roseann M. Jones, Ph. D. Professor of Economics, University of Guam (See website for separate download. )

Wage & Compensation Forum Roseann M. Jones April 10, 2014 Wage & Compensation Forum Roseann M. Jones April 10, 2014

Wage Effects on overall economic activity of an increased minimum wage of income inequality Wage Effects on overall economic activity of an increased minimum wage of income inequality

. . . On Economic Activity Wal-Mart’s market is the bottom 60 percent of . . . On Economic Activity Wal-Mart’s market is the bottom 60 percent of families and with both male and female real earnings now falling for those families, the purchasing power of their current customers has to decline. No one can sell more to those who have less. Lester C. Thurow, MIT

. . . Of Minimum Wage Increase What’s wrong with rising wages, anyway? In . . . Of Minimum Wage Increase What’s wrong with rising wages, anyway? In the past, wage increases of about 4 percent a year – more than twice the current rate – have been consistent with low inflation. Paul Krugman, Princeton

. . . On Income Inequality Capital returns enable them (corporate executives) to accumulate . . . On Income Inequality Capital returns enable them (corporate executives) to accumulate wealth at far higher rates than the mass of men and women whose wages grow no faster than the economy or their own productivity. Thomas Piketty Capital in the 21 st Century

Senator Benjamin J. F. Cruz Senator and Vice Speaker 32 nd Guam Legislature (See Senator Benjamin J. F. Cruz Senator and Vice Speaker 32 nd Guam Legislature (See website for separate pdf download. )

Benita Atalig Manglona Director, Department of Administration (Gov. of Guam) Benita Atalig Manglona Director, Department of Administration (Gov. of Guam)

GWCC Wage and Compensation Forum 2014 April 10, 2014 GWCC Wage and Compensation Forum 2014 April 10, 2014

Introduction Wage Gaps public / private sector Introduction Wage Gaps public / private sector

Wage Gaps Public / Private Sector Gender gaps in government compensation Established pay by Wage Gaps Public / Private Sector Gender gaps in government compensation Established pay by position Comprehensive analysis to identify problem areas Wage gap Public / Private Sector Some positions 1991 last adjustment for General Pay Plan GG pay regulated per Title 4 GCA, Chapter 6 Section 6301 Wage gap between GG

Summary & Conclusion Public / Private Sector Wage Gaps Thorough Analysis Consider island-wide impact Summary & Conclusion Public / Private Sector Wage Gaps Thorough Analysis Consider island-wide impact Forum is good starting point

THANK YOU THANK YOU

Andrew Andrus Executive Director, The Employers Council (no accompanying powerpoint presentation) Andrew Andrus Executive Director, The Employers Council (no accompanying powerpoint presentation)

Barry L. Mead, CFBE, CHE Consultant on Labor Barry L. Mead, CFBE, CHE Consultant on Labor

Employer, Employee, Economy The Impact on Wages from an Employee Representative Perspective Barry L. Employer, Employee, Economy The Impact on Wages from an Employee Representative Perspective Barry L. Mead, CFBE, CHE Consultant on Labor

Wages and Their Impact a Viewpoint • Unemployment though reportedly at an all time Wages and Their Impact a Viewpoint • Unemployment though reportedly at an all time low is still over 40% of Guam’s entire eligible work force when factoring in the 48, 000 people not looking for work but yet draw on the government for some type of assistance, • The allowance of H 2 workers without mandating accompanying apprenticeships for “local” hires, • Right to Work Laws coupled with the belief that all unions are bad, and • The lack of Unemployment Compensation all contribute to not only the “GAP” but the overall low wages paid to Guam workers.

Is There a Gap Issue IN A WORD YES! • Not only between Guam Is There a Gap Issue IN A WORD YES! • Not only between Guam and the rest of the U. S. but more so between Guam’s Private Sector and the Government of Guam. – Not just in or so much wages, but the entire benefit (wage) package. • All Government of Guam employees receive – – 40 hours a week of work & pay 14 days paid sick and vacation leave per year Equal Pay regardless of gender with regular Increases Medical & Dental Insurance

Impact of Increasing the Minimum Wage • Current Minimum Wage $7. 25 per hour Impact of Increasing the Minimum Wage • Current Minimum Wage $7. 25 per hour – Most MW earners work 35 hrs = $253. 75 per week, $13, 195 a year • Raising Minimum Wage by $1. 00 per hour – With a work force of say 16 MW earners working a shift this equates to a $16 per hour employee cost increase. • Who is impacted the most – MW earners • They are the ones laid off or expected to work harder to pick up the needed production – Leads to more people living on or qualifying for Social Programs including MIP, SNAP and Low Income Housing • Can not afford raised sales prices

Where is the Greatest Impact • Current Minimum Wage $7. 25 per hour – Where is the Greatest Impact • Current Minimum Wage $7. 25 per hour – Most MW earners work 35 hrs = $253. 75 per week, $13, 195 a year • Poverty Level for a family of 5 – U. S. $27, 910, Alaska $34, 900, Hawaii $32, 100, Guam $27, 570 – 23% of the island live below this level and 70% of all GDOE students qualify for the Federal Free & Reduced Meal program (9 schools piloted all kids eat free because they are at 75%) • Guam wages are some of the lowest in the United States (BLS) – National Average Median $16. 87 Mean $22. 33 Annual $46, 440 – Guam Median $12. 23 Mean $15. 72 Annual $32, 700 • SNAP – Food Stamps – Guam has the highest person rate ($216 person per month) in the U. S. with 45, 614 reported in June of 2013

Where is the Greatest Impact • Section 8 & Low Income Housing – Guam Where is the Greatest Impact • Section 8 & Low Income Housing – Guam received $32 M in vouchers • Guam Memorial Hospital as an example – MIP / Medicaid and non-paying indigent people • Tax Payers of Guam – More money to social services and programs –vs- General Government Services • Private Business – Less spendable income means less spending

What are Possible Solutions REVIEW OF RIGHT TO WORK LAW The Heritage Foundation Says What are Possible Solutions REVIEW OF RIGHT TO WORK LAW The Heritage Foundation Says (Pro) ◆ Right-to-work states attract more business investment. ◆ Foreign investment in Oklahoma, for example, increased after the state passed a right-to-work law. ◆ States that attract more investment create more jobs. ◆ Unionized firms earn lower profits. ◆ Right-to-work states have lower unemployment rates. The Center for American Progress Says (Con) ◆ Workers in right-to-work laws earn lower wages. ◆ Lower wages decrease consumer demand, resulting in fewer jobs. ◆ Oklahoma, for example, lost one-third of its manufacturing jobs after the state passed a right-to-work law. ◆ Workers in right-to-work states are less likely to have health insurance. ◆ Right-to-work laws undermine unions.

Overall Economic Impact • Guam exemplifies the negative impact that RTW has on local Overall Economic Impact • Guam exemplifies the negative impact that RTW has on local and state economies. • Guam spends less on education per pupil than any state. – National Average $10, 834, Idaho $8, 285, Guam $6, 265 • Guam Teachers are some of the lowest paid in the U. S. – Of the 10 states with the worst paid teachers 8 are RTW • Pre-Natal Care in Guam is one of the lowest in the U. S. – MW earners and Part Time employees do not receive the same benefits as full time employees and management resulting in less or no Medical Coverage, and no Sick Leave Days • Guam wages are some of the lowest in the United States (BLS) – National Average Median $16. 87 Mean $22. 33 Annual $46, 440 – Guam Median $12. 23 Mean $15. 72 Annual $32, 700

BRIEF Q & A BRIEF Q & A

WAGE GAPS ROUNDTABLE DISCUSSIONS WAGE GAPS ROUNDTABLE DISCUSSIONS

WAGE GAPS ROUNDTABLE WRAP-UP WAGE GAPS ROUNDTABLE WRAP-UP

THANK YOU! to our Panelists, Guests, Attendees and Sponsors THANK YOU! to our Panelists, Guests, Attendees and Sponsors