Guam’s workers are losing out!

For most of Guam’s modern history, the minimum wage of Guam has followed the federal minimum wage. The last time the federal minimum wage rose was in July 2009, when it increased to $7.25 per hour. Since then, the Guam Legislature had to make adjustments to ensure that minimum wage workers got somewhat better hourly pay. In January 2015, the Guam minimum wage increased to $8.25 per hour. The cost of living, measured by the consumer price index, has risen by 30% since then, but the minimum wage rose only 12% in the same period. During the same period, the price of food has risen 25%.

Yesterday, the Pacific Daily News has reported that the cost of eggs, which is a staple food item for many in Guam, has reached $7.29 for a dozen large eggs in some stores, while prices for the same item last year was somewhat over $5 for a dozen. It seems that the cause for such higher prices of eggs in particular is linked to bird flu among chickens in the United States, which has led to the slaughter of many hens, to halt its spread. Another factor is likely the higher cost of fuel since the conflict in Ukraine began almost a year ago.

The Progressive Democrats of Guam urged senatorial candidates to support a raise to the minimum wage to restore the purchasing power of the Guam minimum wage. Raising the minimum wage to $11.10 per hour will ensure that minimum wage workers receive the same level of hourly pay in that workers had when the minimum wage was increased in 2015. That rate had been shown to have no significant negative effects for Guam’s economy, but helped improve the take-home pay of workers.