House Speaker Nancy Pelosi yesterday said Democrats will close a loophole in the House-passed minimum wage increase that exempts American Samoa -- an action taken after it was revealed that one of the U.S. territory's main employers is based in her congressional district.
"I have asked the Education and Labor Committee as they go forward with the legislation to make sure that all of the territories have to comply with U.S. law on the minimum wage," Mrs. Pelosi said.
The decision follows criticism over the exemption, reported earlier this week by The Washington Times, to allow tuna canneries in American Samoa to continue paying $3.26 an hour -- nearly $4 less than the $7.25 minimum wage passed by the House Wednesday.
Republicans, after the vote, pointed out that StarKist Tuna, one of two companies that employs about 75 percent of the Samoan work force, is owned by Del Monte, which is headquartered in Mrs. Pelosi's San Francisco district.
"Simply put: It is unethical to provide a special benefit to a company in any member of Congress' hometown," said Rep. John B. Shadegg, Arizona Republican. "For Democrats to act in such a manner so early on in their tenure is hypocritical at best and criminal at worst."
Democrats involved in the legislation say that neither Del Monte nor StarKist has lobbied Mrs. Pelosi or the committee on the matter. And records show that while Del Monte political action committees have given $5,300 in the past five years to Republicans, neither they nor Del Monte executives have given to any Democrats.
The bill, which raises the federal minimum wage $2.10 from $5.15, pointedly extends for the first time the federal minimum wage to the Northern Marianas Islands, another U.S. territory in the Pacific with similarly low wages.
Better late than never, but the Democrats appear to be just as tone deaf over these kinds of matters as the GOP. Did they think that they'd manage to push through legislation that would exempt businesses that operate on Pelosi's home turf from a minimum wage hike that would be imposed on the rest of the nation without anyone noticing or commenting on the hypocrisy?
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