It smells like fish (or the $35.8 million government gift to Del Monte)

[Drakonix]

Democrats have been pounding that they will be "the most ethical Congress".

Among the promises, they promised to raise the federal minimum wage - and they are. Such a bill was recently passed in the House on January 10, 2007.

However, there is an interesting exception to the new minimum wage law. For the first time, the new federal minimum wage extends to the American territory of the Mariana Islands. But the new law exempts one American Territory - American Samoa.

Hmmm. The new minimum wage law applies everywhere in the United States, except American Samoa.

There is an apparent glaring reason why this was done.

One of the biggest opponents of the federal minimum wage is Starkist Tuna, which operates two packing plants in American Samoa. The packing plants employ a total of more than 5000 Samoans.

Starkist Tuna's parent company, Del Monte Corporation, is headquartered in San Francisco, California - Congresswoman (and brand new Speaker of the House) Nancy Pelosi's area.

According to the Del Monte Corporation web site:
( http://www.delmonte.com/Company/AboutUs/Profile.asp )
the company's annual sales are over $3 billion.

Many lawmakers have stated that the exception to the new minimum wage rate for American Samoa was not disclosed to Congress before the bill was voted on in the House.

Congress: SHAME ON YOU for putting the rosey ramrod to a small group of distant Americans in exchange for a commercial interest. Singling out the Samoans like that is immoral.

The "most ethical Congress"? NOT!

Sorry, Charlie. I don't buy Del Monte.

http://washingtontimes.com/national/...0720-2734r.htm

Notes:

The $35.8 million is my figure and is a rough approximation if increased costs to an employer of raising wages from $5.10 per hour to $7.25 per hour, including approximated increases in payroll taxes and benefits. I'm feeling somewhat off today, so I hope I didn't bork the figures.

Statutory minimum wage increase is from $5.10 per hour to $7.25 per hour = raise of $2.15 per hour (at maximum).

In a standard work year there are 52 weeks of 40 hours each (52 * 40) = 2080 hours

(2080 hours * $2.15) = increase of $4,472.00 per year per employee
$4472 per year * 1.6 to allow for increased payroll taxes & benefits = $7155.20/year/employee. The X 1.6 figure is a standard approximation for costs of employees to employers in order to account for payroll taxes and costs of benefits.

Starkist Tuna (Del Monte Corporation) operates two packing plants in American Samoa that employ approximately 5000 Samoans.

Total annual cost for increased wages at $7.25 per hour (wage at conclusion of increases) for 5000 employees, including increases in payroll taxes and benefits is approximately ($7155.20 * 5000) = $35,776,000.00


Loss of revenue to government:

$4,472.00 per year * 5000 employees = $22,360,00.00 (approximately) in increased wages

$22,360,000.00 * .15 = $3,354,000.00 (approximately) annually in lost payroll tax revenue

($22,360,000.00 - $3,354,000.00) = $19,006,000.00 annually potentially subject to income taxes
$19,060,000.00 * .1 = $1,906,000.00 (approximately) annually in lost income tax revenue

$3,354,000 + 1,906,000.00 = $5,260,000.00 (approximately) annual loss in tax revenues (pretty much that's peanuts).