TAKING CARE OF BUSINESS Newsletter of the Saipan Chamber of Commerce From the president Hafa adai fellow Chamber members— FEBRUARY 2014 Board of Directors President Alex A. Sablan Vice President Velma Palacios Treasurer Jinwoo Cho Secretary Greg Moretti Directors Christopher Concepcion Kevin McCale Nola K. Hix Ron Smith Rosemond B. Santos Executive Director Patrick Leon Guerrero Administrator/Planner Emi H. Agulto Administrative Assistant Yolanda Cruz Hafa Adai and Tirow’ fellow chamber members Wow! it’s already February time is flying and again your new Board of Directors appreciate your vote of confidence and we look forward to another year of fruitful activities representing your voice in matters pertinent to our continued success. Local legislation was recently introduced to raise the (local) CNMI minimum wage rate from the current $3.55 to $7.25 an hour in six months. I was asked to comment on this legislation during a weekend radio show last Sunday. I sighted the many economic reports (OIA, GAO, First Hawaiian Bank) that stipulate the CNMIs’ “gross Island product” is growing exponentially BUT clearly many of the reports indicate, that we’re still in a fragile state and we’re not out of the woods yet. The Chamber Board lobbied for a deferment of the Federal minimum wage increase from $5.55. to $6.05 for September 2013. The one year reprieve to increase Federal minimum wage to $6.05 per hour will take effect this year, on September 1, 2014. The next annual deferment of Federal minimum wage from $6.05 to $6.55 will occur on September 1, 2015 and ultimately the increase will take effect on September 1, 2016, with no further $0.50 deferments until minimum wage reaches the current mandated U.S. minimum wage of $7.25 by September 1, 2018. Based on the reports, conditions felt and debated by many small businesses on the ground, the Chamber Board felt it necessary to lobby for the deferments to ensure small businesses could weather the economic storm and ride out on the wave of growth that is coming. Tourism is growing leaps and bounds with increased scheduled service from Korea and Osaka as well as increased charter flights from China and Russia we’ll see our tourism numbers grow dramatically year over year for the foreseeable future. As many of you realize, businesses operate on a “zero sum game” and do not have the luxury to deficit spend, we must run within a budget to stay afloat. Raising minimum wage a $1.70 more per hour would surely require most businesses to reduce hours, lay off workers, or the extreme, ultimately shut down. I believe one would only have to go so far as the CNMI Governments own personnel budget which has not allowed for an annual step in grade salary increase in over 12 years, not because no one deserves an increase but the economy has been in a recession and tax collections were such that the Government just cannot afford an increase in wages. I would ask the Legislature to err on the side of caution when addressing this issue of a local minimum wage increase almost immediately to $7.25 and whether this is the prudent thing to do at this stage, as we witness our tourism industry and development climb out of the doldrums of a 15 year lull or run the risk of stalling it altogether. I respectfully ask our Legislators to allow the aforementioned deferments to take their course and witness the rebirth of a once vibrant economy solely driven by Tourism as more and more business manage the challenges of ever increasing costs of doing business in the CNMI. Welcome New Member Wood Ventures - Kayla Wood 235-2116 General Membership Meeting Kanoa Resort– Seaside Hall Wednesday, February 5, 2014 AGENDA I. Call to Order II. Introduction of Member’s guests III. Welcoming Remarks IV. Announcements Welcome new member : Wood Ventures - Kayla Wood V. Guest Speakers: 1. Jim Arenovski—Island Training Solution’s 2. Department of Commerce Ms. Katelin Mocano Small Business Development Center Mr. Perry Inos Jr. 3. John O. Gonzales - NMTI VI. Adjournment SCC Committee Reports Armed Forces Committee ( Judge David Wiseman): No report Education Committee (Janice Tenorio and Velma Palacios): No report Environmental Committee (Greg Moretti and Ron Smith): No report Events Committee (Nola Hix and Kevin McCale): No report Government Relations & Economic Development Committee (Vince Seman and Rosemond Santos): The GREL meeting discussion centered more on business community, the Executive Director is to review long list of previous submittals and provide GREL members copies of SCC position papers. Membership Committee (Chris Concepcion and Nola Hix): No report Small Business Committee (Perry Inos Jr.): Friday, February 07, 2014 Training workshop topic How to Start a Business 2014 2nd floor Family Building conference room from 10:00 a.m. to 12:00 p.m. Please sign up by calling 664-3018 or register with your Chamber office by calling 233-7150 . Sign up sheets for 2014 Committee’s are available at the reception table. Committee meetings are tentatively scheduled each month, but are subject to change based upon chairpersons’ scheduling requirements. The Chamber Office will notify all Committee members of the exact scheduling dates and times before each meeting. Presentation of plaque Business Person of The Year Award 2013 Marcie Tomokane /Bank of Guam 2012 past recipient Marcia Ayuyu / RJ Corporation 2014 Saipan Chamber’s Installation of Officers and Directors January 25, 2014 Fiesta Resort Hotel USS McCampbell CDR Sharif Calfee, USN with Saipan Mayor Donald Flores, Velma Palacios, Janice Tenorio and SCC’s Emi Agulto at the 360 From the President The CNMI cannot continue to lose anymore citizens, let alone Foreign National Workers, to the mass exodus we have witnessed over the recent past. We will need as many able bodied workers to fulfill the workload that is coming with the increase of 40% to 60% in hotel room inventory and the ancillary businesses that will come as a result of the increase in tourist number pegged for 480,000 this year. I believe most of us realize the difficulty it has been to sit and wait over the past 15 years for a breakout in economic activity, to witness a reasonable profit margin, wages rise and a spiraling cost of living somewhat normalize. I believe our patience will pay off in the next few years but we all have to have a hand in effectively improving the our destinations’ product and progressively moving forward with ideas that work to better our lives and our community. I thank you for your time. Alex Sablan USS McCampbell COMREL at the Hopwood Jr. High School Social Studies Class Saipan Mayor’s Office and the Saipan Chamber of Commerce coordinate Saipan vs. US Navy The Saipan Chamber of Commerce, founded in 1959 and incorporated in 1976, is the largest private business organization in the Commonwealth of the Northern Mariana Islands. The Chamber works to promote and protect the business, economic, and civic interest, and general health and welfare, of our islands. Visit the Chamber’s website at www.saipanchamber.com