Governor: minimum wage hike is a 'win-win' for businesses, workers
If they pass it, she will sign it.
Gov. Lou Leon Guerrero is calling on senators to push through specific legislation to help out the "working class," especially a bill to again raise the minimum wage.
The governor mentioned the initiatives during a monthly address that referenced the recent Labor Day celebration.
"I think it's one way that we can put more buying power into our workers," she said on raising the minimum wage.
A bill by Sen. Joe San Agustin would raise it from $8.25 an hour to $9.25 in two 50-cent increments over the next two years. And Leon Guerrero says that money will just re-circulate through the economy.
"People just give it back to the community in the ways of, being able to buy more goods, and be able to pay their bills on time," the governor said.
But the business community has generally been opposed or very cautious about the inflationary effects, which means rising prices for the very people it's meant to help. But the governor points to an economic study done prior to the last hike.
"It showed that GDP was increased over the last, I wanna say five years, and also cost of inflation was pretty much flat," she said.
She adds that the number of workers and their hours also did not decrease over that period.
"I think overall it's gonna be a good win-win situation for both business people and working people, and I support the efforts of the legislature in moving that forward," Leon Guerrero said.
The governor is also supporting several other labor-friendly initiatives such as raising worker's compensation benefits, funding the expiring Guam Apprenticeship program, and urging all businesses who collect service charges to allocate 100-percent to employees.