The debate over how much Guam’s minimum wage should rise, and how often, continued as senators heard varying perspectives from stakeholders during Bill 4’s  second public hearing on Friday. 

The second public hearing on Senator Joe San Agustin’s bill focused on whether tying Guam’s minimum wage to inflation is a long-term solution – or a risk for an already fragile economy. The bill proposes automatically adjusting the minimum wage each year using Guam’s Consumer Price Index, rounded to the nearest $0.25. If applied today, the formula would raise the wage from $9.25 to more than $11.50 – an increase of about 24%.

Earlier this month, business leaders and the Guam Chamber of Commerce warned such a jump could strain employers already dealing with rising labor, shipping, fuel, and utility costs – arguing that minimum wage is meant as an entry-level baseline, not a living wage.

Public testimony this week included resident Mary Lizama, who stated Guam’s high cost of living is shaking the stable foundation that employment with the Government of Guam should guarantee.  “Even with our pay, it’s just not enough," she stated.

Fellow resident Phil Cruz testified that many of the people most affected by minimum wage decisions were not present in the room, saying, “Look across the street right now. That’s your minimum wage earners. But a lot of people are going to say, ‘Oh, they’re lazy.’ Some probably got mental health issues, maybe are ill, or don’t have the attire to come here.”

“They will have a different story than what these people said, and I respect these people," added Cruz, questioning why a modest increase continues to draw resistance. “These people only want $3. Jesus Christ! And we’re going to cry over that?”

Small business owners, however, urged senators to consider the economic ripple effects. Café Hava Java 671 owner Richard Quiambao said food and beverage businesses operate on extremely thin margins, with labor costs already being their largest expense.

“I believe in fair wages," he offered. "I believe in dignity for workers...my testimony today is not about opposing workers. Its about whether small businesses on Guam can survive this proposal as it is written.”  But he warned that even incremental increases add up quickly and costs cannot be absorbed when sales are flat or declining. 

And from an analytical standpoint, University of Guam School of Business and Public Administration dean Dr. Rosann Jones cautioned against placing Guam’s minimum wage on what she described as “autopilot,” noting the island’s economy is smaller and more federally dependent than states using similar systems.

Explaining her thoughts, she said, “We need the ability to be nimble and flexible and responsive, not on automatic adjustment.”

Finally, Guam National Association of Social Workers policy chair Malia Salisbury voiced their support for the measure, linking low wages to broader social and economic instability. While income caps on assistance programs also leave many families exposed to financial emergencies.

“The fundamental purpose of a minimum wage is to establish a baseline level of earnings that prevents families from falling below a socially acceptable income threshold. Enhancing the minimum wage to meet inflation is an essential step to promoting economic reform and securing economic justice for our working-class people," she said.

Bill 4 remains under legislative review as senators weigh worker affordability against business sustainability, and whether an automatic wage mechanism truly fits Guam’s economic reality.