presents:
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 of Economics, School of Business and Public Administration
Resident Development Economist, Pacific Center for Economic Initiatives
mcruane@uguam.uog.edu
Which Hourly Wage Rate?
1A
FAMILY SIZE (A=adult; C=child/ren)
1A +
1A +
1A +
2A +
2A +
1C
2C
3C
2A
1C
2C
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
2A +
3C
$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 Q2 2009
(+10.44% increase on Guam overall CPI)
13.48
8.87
10.66
13.43
15.81
$8.01 hourly
$16,661 annually
MINIMUM WAGE ADJUSTED 2
Adjusted to keep pace with price increases in food, housing,
utilities, fuel, etc. since Q2 2009 (+21% increase on Guam overall
CPI)
$8.77 hourly
$18,242 annually
PROPOSED FEDERAL MINIMUM WAGE
$10.10 hourly / $21,008 annually
PROPOSED FEDERAL MINIMUM WAGE PLUS 20% COST
DIFFERENTIAL ON GUAM
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
HOUSING WAGE
http://nlihc.org/oor/2014
wage rate required to afford a 2BD rental at fair market rate,
FMR) Based on current MLS listing, 40% percentile of 2BD rentals
on Guam is $850 per month
2013 Median Wage Rate on Guam
$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 mcruane@uguam.uog.edu for details)
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 Economist
Bank of Guam
April 10, 2014
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
Fourth Quarter, 2013
AGRICULTURE, 160, 0%
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
– 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
CONSTRUCTION,
360
MANUFACTURING
AGRICULTURE, 20
, 350
TRANSPORTATION
/PUBLIC
UTILITIES, 1,840
AGRICULTURE,
140
LOCAL
GOVERNMENT,
5,370
MANUFACTURING
, 1,070
CONSTRUCTION,
6,760
LOCAL
GOVERNMENT,
6,200
FEDERAL
GOVERNMENT,
2,030
RETAIL TRADE,
6,120
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
NCE/REAL
ESTATE, 760
WHOLESALE
TRADE, 1,530
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 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, 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
Average Weekly Earnings - Guam
Private Sector Production Workers
$600.00
$500.00
$479.77
$394.58
$400.00
$339.99
$300.00
$200.00
$100.00
$0.00
$206.07
Consumer Price Index - Guam
(QIV:2007 base = 100)
140.0
120.0
115.8
100.0
80.0
73.5
60.0
52.4
40.0
20.0
0.0
25.1
Real Average Weekly Earnings - Guam
Private Sector Production Workers
(Adjusted for Guam's Consumer Price Index)
$1,000.00
$900.00
$821.62
$800.00
$700.00
$648.83
$600.00
$537.05
$500.00
$414.31
$400.00
$300.00
$200.00
$100.00
$0.00
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
Real v. Nominal Minimum Wage Rate in Guam
(QIV:2007 Dollars)
$16.00
$14.00
$13.36
$12.00
$10.00
$8.11
$8.00
$7.01
$7.25
$6.26
$6.00
$5.15
$4.25
$4.00
$3.35
U.S. Minimum Wage
Guam Minimum Wage in QIV:2007 Dollars
$2.00
$-
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
Real v. Nominal Minimum Wage Rate in Guam
(QIV:2007 Dollars)
$16.00
$14.00
$13.36
$12.00
What Guam's real minimum wage
would be with a $10.10 nominal
minimum wage (QIV:2007 Dollars)
$10.00
$8.72
$8.11
$8.00
$7.01
$7.25
$6.26
$6.00
$5.15
$4.25
$4.00
$3.35
U.S. Minimum Wage
Guam Minimum Wage in QIV:2007 Dollars
$2.00
$-
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)
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 – Labor Force Characteristics
Employment by Industry & Sector
Education Level & Occupation
Women’s Earnings
Minimum Wage
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 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 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
Labor Force Characteristics
Adult
Adult
Latest
Men
Women
Period
Unemployment Rate- Guam
8.4%
8.4%Sept. 2013
Unemployment Rate - U.S.
6.2%
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%
5.1%
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%
43.5%
56.5%
Construction
Total
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/cen2010/doc/dct1gu.pdf.
Characteristic
Total
18 to 24 years
25 to 29 years
30 to 34 years
35 to 44 years
45 to 54 years
55 to 64 years 65 years and over
107,046
17,793
10,746
10,346
23,063
20,275
14,076
10,747
EDUCATIONAL ATTAINMENT
Population 18 years and over
...Less than 9th grade
7,359
440
412
413
1,100
1,144
1,353
2,497
...9th to 12th 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
600
...Percent high school graduate, GED, or alternative credential; or higher
78.8
75.6
81.1
79.8
82.0
83.4
79.8
64.0
...Percent bachelor's degree or higher
17.7
4.0
14.9
20.1
20.7
22.0
23.4
18.5
52,492
8,334
5,315
5,195
11,149
9,696
7,067
5,736
1,576
...Graduate or professional degree
Females 18 years and over
...Less than 9th grade
4,010
193
206
206
480
569
780
...9th to 12th 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
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
consideration of measure made in Senate.
• 113th 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 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:
ALL WORKERS:
Private Sector
Federal Government (ex. NonApp)
Government of Guam
Percent of Private Sector
Percent of Total Guam
46,170
2,968
11,835
U.S. Overall - Directly Affected
U.S. Overall - Indirectly Affected
Difference: (Additional
Indirect)
Source: Guam - Bureau of Labor Statistics, U.S. Data - Economic Policy Institute
Mean
Wage
$13.65
28.27
19.78
Less
Less
than
than
Less than
$8.20
$9.15 $10.10
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
ALL WORKERS - ALL SECTORS
Number
SOC
Mean
Less
Less
Less
than
than
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
Less
Less
ALL WORKERS - ALL SECTORS
than
than
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
Number
Mean
Less
Less
Less
than
than
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 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
Business Revenue by Class of Customer
• Source: 2007 Guam Economic Census
Revenue by Class of Customer
Local Government
4%
Federal Government
7%
All other
customers
11%
Local Residents
36%
Construction firms
12%
Retailers or wholesalers
14%
Visiting tourists
16%
Business Revenue by Sector
Other services except p.a.
180,543
Accomodation & food svs.
635,286
Arts, entertainment
87,581
Health Care
245,079
Educational Services
11,656
Administrative & support
189,912
Management of companies
7,507
Professional & scientific
230,912
Real Estate and rental
201,565
Finance & Insurance
466,024
Information
197,574
Transportation
219,946
Retail Trade
1,618,402
Wholesale Trade
799,845
Manufacturing
166,790
Construction
578,869
Utilities
406,976
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
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 91 - Total Federal Govt Employment
Guam
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 is
scheduled for release April 29, 2014.
• Your comments and ideas are solicited.
gary.hiles@dol.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 separate download.)
Wage & Compensation Forum
Roseann M. Jones
April 10, 2014
Wage Effects
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 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 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 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 21st Century
Senator Benjamin J.F. Cruz
Senator and Vice Speaker
32nd Guam Legislature
(See website for separate pdf download.)
Benita Atalig Manglona
Director, Department of Administration
(Gov. of Guam)
GWCC Wage and Compensation
Forum 2014
April 10, 2014
Introduction
Wage
 public
Gaps
/ private sector
Wage Gaps Public / Private Sector
Gender


Established pay by position
Comprehensive analysis to identify problem areas
Wage




gaps in government compensation
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
 Forum is good starting point
THANK YOU
Andrew Andrus
Executive Director,
The Employers Council
(no accompanying powerpoint presentation)
Barry L. Mead, CFBE, CHE
Consultant on Labor
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 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 H2 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 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
– 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
– 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 per person rate ($216 per 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 received $32M 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 (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 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
WAGE GAPS
ROUNDTABLE
DISCUSSIONS
WAGE GAPS
ROUNDTABLE
WRAP-UP
THANK YOU!
to our Panelists, Guests,
Attendees and Sponsors