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Table of contents  List of Figures and Tables   Appendices



IV. American Samoa Wage Structure

Minimum Wage Rates under the Fair Labor Standards Act

The Fair Labor Standards Amendments of 1956 extended coverage of the Fair Labor Standards Act (FLSA) to American Samoa and provided that the Act-s industry committee procedure be used for establishing minimum wage rates. Under the committee procedure--which prior to the amendments applied only to Puerto Rico and the Virgin Islands--an industry committee is convened at least once in each two-year period for the purpose of reviewing minimum wage rates that are less than the statutory minimum rate for the mainland. Specifics of the committee procedure are given in sections 5, 6 and 8 of the FLSA and in Part 511 of Title 29 of the Code of Federal Regulations. Committee minimum wage recommendations are published in the Federal Register as a Wage Order without further review by the Secretary of Labor. Only Congress has the authority to alter minimum wage recommendations.

Background

The 1966 and 1974 amendments to the FLSA extended the scope of the Act-s coverage to additional workers by elimination or narrowing of exemptions and by extending coverage on an enterprise basis. Although the 1989 amendments to the Act increased the dollar volume of the enterprise test, employees previously covered continued to receive the minimum wage in effect.

The 1977 FLSA amendments provided for annual increases in the minimum wage for Puerto Rico and the Virgin Islands until they reached the minimum wage paid in the fifty states. This action eliminated use of the industry committee procedure for all U.S. territories except American Samoa.

Current Minimum Wage Rates

The minimum wage rates recommended by an industry committee cannot be higher than the FLSA minimum wage rate applicable on the U.S. mainland. Once the rates in American Samoa reach the mainland level, they will no longer be set by industry committee procedure. Subsequently, American Samoa minimum wage rates will be subject to the same minimum wage increases as apply on the mainland. The current mainland minimum wage rate of $5.15 per hour became effective on September 1, 1997.

The industry committee has the authority to recommend rates up to the rates specified in section (6)(a)(1) of the FLSA. The committee can recommend -no increase- but it cannot lower an existing rate. The current minimum rates and the rates for 2000 through the year 2004 for the 16 industry classifications in American Samoa are presented in Table IV A.

As Table IV A indicates, there were no minimum wage rate increases in 2003 and 2004.

Table IV A. Minimum Wage Rates by Year and Percent Change, 2000-2004

Industry Classification

Minimum Wage Rates ($/hr)
2000

Minimum Wage Rates ($/hr)
2001

Minimum Wage Rates ($/hr)
2002

Minimum Wage Rates ($/hr)
2003

Minimum Wage Rates ($/hr)
2004

Government Employees

2.69

2.73

2.77

2.77

2.77

Fish Canning and Processing

3.20

3.26

3.26

3.26

3.26

Petroleum Marketing

3.78

3.82

3.85

3.85

3.85

Shipping and Transportation: Classification A

3.97

4.03

4.09

4.09

4.09

Shipping and Transportation: Classification B

3.81

3.87

3.92

3.92

3.92

Shipping and Transportation: Classification C

3.77

3.83

3.88

3.88

3.88

Construction

3.50

3.55

3.60

3.60

3.60

Retailing, Wholesaling, and Warehousing

3.01

3.06

3.10

3.10

3.10

Bottling, Brewing, and Dairy Products

3.10

3.15

3.19

3.19

3.19

Printing

3.40

3.45

3.50

3.50

3.50

Publishing

3.53

3.58

3.63

3.63

3.63

Finance and Insurance

3.88

3.94

3.99

3.99

3.99

Ship Maintenance

3.25

3.30

3.34

3.34

3.34

Hotel

2.78

2.82

2.86

2.86

2.86

Tour and Travel Services

3.22

3.27

3.31

3.31

3.31

Private Hospitals and Educational Institutions

3.24

3.29

3.33

3.33

3.33

Garment Manufacturing

2.60

2.64

2.68

2.68

2.68

Miscellaneous Activities

2.50

2.54

2.57

2.57

2.57

Sources: Federal Register, Vol. 68, No. 152, August 7, 2003.

U.S. Department of Labor, Economic Report: The Minimum Wage in American Samoa, 2003, Wage and Hour Division.

The workers in Fish Canning and Processing last received an increase in their minimum wage in 2001. All other industries received rate increases effective in 2002. The average annual increase in the minimum wage, for covered workers in all industries, has been less then one percent for the past four years.


Survey Results

In November 2004 the Wage and Hour Division, part of the U.S. Department of Labor-s Employment Standards Administration, conducted a voluntary employment survey of establishments in American Samoa covered by the Fair Labor Standards Act. While not a universe survey, an attempt was made to obtain a large representative sample of firms in the territory. For the two industry classifications that employed the largest number of workers, Fish Canning and Processing, and Government Employees, the surveys were equivalent to a universe survey.

A representative from each establishment contacted at the time of the survey was asked to furnish employment and wage information for covered employees. Employment data were collected for February, May, August, and October of 2003 and 2004. Wage data were collected for the payroll period that included the day of October 12, 2004. A listing of the private sector establishments surveyed, together with the number of covered employees for selected months in 2003 and 2004, are presented in Appendix A.

The survey revealed that in October 2004 there were 12,264 covered employees working in 176 establishments or government agencies contacted by Wage and Hour personnel. A total of 7,140 workers were employed at 171 establishments in private sector industry classifications and 5,124 were working in the Government Employees industry. A distribution of employment and number of establishments by industry classification are presented in Table IV B. In addition, Table IV B provides the average wages earned by covered employees in each industry as of October 2004.

The U.S. Census Bureau estimated the American Samoa civilian labor force at 17,627 for 2000 and civilian employment at 16,718.36 Thus, covered employees who worked at the establishments and agencies surveyed for this report represent 70 percent of year 2000 civilian labor force and 73 percent of year 2000 employment.

Table IV B. Number of Establishments, Covered Workers, and Wages by Industry Classification, November 2004 Survey Results

Industry Classification

Number of Surveyed Establishments or Agencies

Covered Employees
Number

Covered Employees
% of Total

Average Hourly Wages($)
2004

Average Hourly Wages($)
2002**
37

Government Employees

5

5124

41.78

7.99

7.24

Fish Canning and Processing

3

4738

38.63

3.60

3.56

Petroleum Marketing

3

15

0.12

5.92

6.77

Shipping and Transportation: Class A

4

289

2.36

4.41

4.62

Shipping and Transportation: Class B

1

5

0.04

4.57

3.84

Shipping and Transportation: Class C

6

87

0.71

5.30

5.70

Construction

10

243

1.98

4.81

4.64

Retailing, Wholesaling, and Warehousing

107

1267

10.33

4.55

4.61

Bottling, Brewing, and Dairy Products

0

*

*

*

3.90

Printing

2

13

0.11

4.13

4.90

Publishing

2

21

0.17

8.14

6.81

Finance and Insurance

13

131

1.07

7.90

7.32

Ship Maintenance

1

25

0.20

6.54

7.28

Hotel

4

139

1.13

4.07

4.51

Tour and Travel Services

2

5

0.04

6.71

7.51

Private Hospitals and Ed. Institutions

1

59

0.48

3.23

7.86

Miscellaneous Activities

12

103

0.84

5.01

5.20

Total

176

12264

 

 

 

*No data was collected for Garment Industry and Bottling, Brewing and Dairy Products. No Garment Industry exists on the island and businesses for Bottling, Brewing and Dairy Products were contacted but did not participate in the survey.

**Please note that the 2002 Average Hourly Rate has been provided only as a reference and due to the limited and variant nature of the data, no concrete statistical trend between years should be inferred.


American Samoa Employment and Wages

Three sectors employed approximately 91 percent of all covered workers in survey data:

  • Fish Canning and Processing continued to be the dominant industry in the private sector with 4,738 covered employees in October 2004. This represented 39 percent of the total number of covered workers in the survey.
  • The American Samoa Government employed 5,124 covered workers, accounting for more than 41 percent of total survey employment.
  • Employment in Retailing, Wholesaling, and Warehousing accounted for 1,267 workers or ten percent of the covered employees in firms surveyed.

Table IV B indicates there were five establishments in two industries that paid average wages below $4.00 per hour to covered employees. These firms were in the industries Fish Canning and Private Hospitals and Educational Institutions. The Government Employees industry, paying an average hourly wage of $7.99, accounted for the largest number of covered employees (5,124).

There were 23 surveyed establishments or government agencies that paid average wages greater than $6.00 per hour. Publishing led all industries in terms of average hourly wage ($8.14) paid to covered employees. The industry with the second highest level of average wage paid was Government Employees at $7.99. According to survey data, the Finance and Insurance paid an average hourly wage of $7.90 to covered employees.

Figure 1 shows the percent of covered employees by wage range for all of the establishments and agencies surveyed based on October 2004 data. Percent employment is illustrated by wage rates in increments of one dollar beginning with the lowest wage paid. According to survey data, a wage of $2.50 per hour was the lowest wage; however, the wage range $2.50 to $2.99 contained only 52 workers (much less than one percent of total surveyed employment). Those earning wages of $3.00 to $3.24 accounted for only three percent of the workforce. Employees earning $3.25 to $3.49 represented the largest wage range category, containing approximately 30 percent of all workers, the largest contributor being the Fish Canning and Processing Industry. Thirteen percent of covered employees were paid $3.50 to $3.99 per hour and eleven percent earned $4.00 to $4.49. Covered employees earning $4.49 to $4.99 represented six percent of employment and ten percent earned $5.00 to $5.99. Approximately 7 percent of covered employees earned $6.00 to $6.99 and 3 percent earned wages of $7.00 to $7.99. The remaining workers, 17 percent, were paid wages that exceeded $7.99 per hour.

Estimated Effect of Increases in the Minimum Wage

Calculations have been made showing the direct effects of alternative higher minimum wage rates for workers in American Samoa. These calculations are presented in Appendix B. The calculations show the average hourly wage and total hourly income (firms- cost) resulting from increases in the minimum wage in five-percent increments.

Figure 1: Percent Employment by Wage Range, American Samoa Surveyed Establishments. This image is a pie chart taken from a survey of 12,264 people with an average hourly wage of $5.67. The results show that 1% made between $2.50-$2.99. 3% made between $3.00-$3.24. 30% made between $3.25-$3.49. 13% made between $3.50-$3.99. 11% made between $4.00-$4.49. 6% made between $4.50-$4.99. 10% made between $5.00-$5.99. 7% made between $6.00-$6.99. 3% made between $7.00-$7.99. 17% made more than $7.99.

In reviewing these calculations it is necessary to remember that:

  1. The calculations show only the direct effects of increasing the wage rates of workers being paid less than a specified rate up to that rate, and do not take into consideration any movement in the wage structure (resulting from steps taken to avoid wage compression) above the alternative minimum wage rate.
  2. These calculations are based upon the wage structure of the surveyed firms as of October 2004 and do not take into consideration any subsequent wage movements occurring immediately after the survey.

Sub-Minimum Wage Employees

Based on Wage and Hour survey data, some covered employees earned wages below the minimum rate established for their respective industry classifications. Because the Employment Standards Administration of the U.S. Department of Labor has responsibility for investigating potential violations, Wage and Hour personnel will contact the establishments where these workers were employed in an attempt to ascertain minimum wage compliance. If some employers overstated the wages paid to some employees in an attempt to avoid such investigations, the estimates in this report might understate the true costs of raising wages to some higher minimum wage. However, these costs are really attributable to compliance with the current minimum wage rather than the result of raising the minimum wage to the higher level.


Government Employees Industry

This industry classification includes all employees of the Government of American Samoa. It includes executive agencies, a hospital and educational institutions, and a power facility. This classification excludes all employees of the U.S. Federal Government. The minimum wage rate for this industry is $2.77 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $7.99 to covered employees. According to survey data, only one person was paid below the minimum wage.

The reported Government Employees Industry classification employment was 5,124 covered employees among five establishments. Less than one percent of the workers were paid $2.73 to $2.76, below the minimum wage set for this industry. Less than one percent earned wages $2.77 to $2.99 and 1 percent earned from $3.00 to $3.24 per hour (see Figure 2). Two percent were paid from $3.25 to $3.49 per hour and three percent earned $3.50 to $3.74. Three wage groups, $3.75 to $3.99, $4.00 to $4.24 and $4.25 to $4.49, each represented 5 percent of the industry employment. Three percent were paid from $4.50 to $4.74 per hour and four percent earned $4.75 to $4.99. Four percent were paid from $5.00 to $5.24 per hour and four percent earned $5.25 to $5.49. The largest group of workers, 64 percent, was paid at a rate that exceeded $5.49 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $2.91 (a 5% increase) would affect 26 employees, increasing the hourly range income by 0.01 percent. The average hourly rate would change by less than $0.01. (see Appendix B). An increase to $3.05 (a 10% increase) would affect 42 employees, increasing the hourly wage income by 0.02 percent. The average hourly rate would change by less than $0.01. Increasing the minimum wage to $3.19 (a 15% increase) per hour would affect 64 employees, increasing the hourly wage income by 0.04 percent. The average hourly rate would change by less than $0.01.


Fish Canning and Processing Industry

The Fish Canning and Processing Industry includes the canning, freezing, preserving, and processing of any fish or shellfish, and the manufacture of any byproduct from these activities. It also includes the manufacture of cans and related activities. The minimum wage rate for this industry is $3.26 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $3.56 to covered employees. According to survey data, no person was paid below the minimum wage.

The reported Fish Canning and Processing Industry classification employment was 4,738 covered employees among three establishments. Seven percent of the workers were paid $3.26 to $3.29. The largest group of employees, 54 percent, was paid from $3.30 to $3.34. Three percent were paid from $3.35 to $3.39 per hour and seven percent were paid from $3.40 to $3.49. Nine percent were paid from $3.50 to $3.74 per hour and six percent were paid from $3.75 to $3.99. The remaining 17 percent of workers were paid at a rate that exceeded $3.99 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $3.42 (a 5% increase) would affect 3,198 employees, increasing hourly wage income by 2.2 percent. The average hourly rate among all employees would rise to $3.68 per hour (see Appendix B). An increase to $3.59 (a 10% increase) would affect 3,470 employees, increasing hourly wage income by 5.4 percent. The average hourly rate among all employees would rise to $3.80 per hour. Increasing the minimum to $3.75 (a 15% increase) would affect 3,771 employees, increasing hourly wage income by 8.9 percent. The average hourly rate among all employees would rise to $3.92 per hour

Figure 3: Percent Employment by Wage Range, Fish Canning and Processing Industry. This image is a pie chart taken from a survey of 4,738 people with an average hourly wage of $3.60. There were 0 workers paid below $3.26 and 352 workers paid the minimum wage of $3.26. The results show that 7% made between $3.26-$3.29. 54% made between $3.30-$3.34. 3% made between $3.35-$3.39. 7% made between $3.40-$3.49. 9% made between $3.50-$3.74. 6% made between $3.75-$3.99. 14% made more than $3.99.


Petroleum Marketing Industry

This industry includes the wholesale marketing of gasoline, kerosene, diesel, and other petroleum products; bunkering operations connected with these products; and the repair and maintenance of petroleum storage facilities. The minimum wage rate for this industry is $3.85 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $592 to covered employees. According to survey data, no person was paid below the minimum wage.

The reported Petroleum Industry classification employment was 15 covered employees among one establishment. Twenty seven percent earned wages of $3.85 to $4.24 per hour and 7 percent earned wages of $4.25 to $4.49 per hour (see Figure 4). Seven percent earned wages of $4.50 to $4.99 per hour and 13 percent earned wages of $5.00 to $5.49 per hour. Seven percent earned wages of $5.50 to $5.99 per hour and thirty nine percent earned wages in excess of $5.99

If there were an increase in the minimum wage, the direct effect of raising the minimum to $4.04 (a 5% increase) would affect 4 employees increasing the hourly wage income by 0.18 percent. The average hourly would increase to $5.93 (see Appendix B). An increase to $4.24 (a 10% increase) would affect 4 employees, increasing the hourly wage income by 1.1 percent and would raise the average hourly rate to $5.98. Increasing the minimum to $4.43 (a 15% increase) would affect 5 employees, increasing the hourly wage income by 2.1 percent and would raise the average hourly wage rate to $6.04.

Figure 4: Percent Employment by Wage Range, Petroleum Marketing Industry. This image is a pie chart taken from a survey of 15 people with an average hourly wage of $5.92. There were 0 workers paid below $3.85 and 0 workers paid the minimum wage of $3.85. The results show that 27% made between $3.85-$4.24. 7% made between $4.25-$4.49. 7% made between $4.50-$4.99. 13% made between $5.00-$5.49. 7% made between $5.50-$5.99. 39% made more than $5.99.


Shipping and Transportation Industry: Classification A

This classification includes firms whose employees were engaged in any of the following three services: stevedoring, lighterage, and maritime shipping agency activities. This industry excludes the operation of ticket agencies and travel bureaus, and excludes the bunkering of petroleum products. The minimum wage rate for this industry is $4.09 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $4.41 to covered employees. According to survey data, one person was paid below the minimum wage.

The reported Shipping and Transportation: Classification A classification employment was 289 covered employees among four establishments. Less than one percent of the employees (1 employee) were paid below the minimum wage of $4.09 while the largest number of employees (205) was paid exactly the minimum wage. Seventy three percent earned wages of $4.09 to $4.24 per hour and 10 percent earned wages of $4.25 to $4.74 per hour (see Figure 5). Six percent earned wages of $4.75 to $5.24 per hour and eleven percent earned wages in excess of $5.24 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $4.29 (a 5% increase) would affect 223 employees, increasing the hourly wage income by 3.3 percent and an increasing the average hourly wage to $4.56 (see Appendix B). An increase to $4.50 (a 10% increase) would affect 230 employees, increasing the hourly wage income by 7.1 percent and would raise the average hourly rate to $4.72 per hour. Increasing the minimum to $4.70 (a 15% increase) would affect 240 employees, increasing the hourly wage income by 10.8 percent and would raise the average hourly wage rate to $4.89 per hour.

Figure 5 is a pie chart showing the Percent Employment by Wage Range, Shipping and Transportation Industry: Classification A. This image is a pie chart taken from a survey of 289 people with an average hourly wage of $4.41. There was 1 worker paid below $4.09 and 205 workers paid the minimum wage of $4.09. The results show that 1% made between $4.00-$4.08. 73% made between $4.09-$4.24. 10% made between $4.25-$4.74. 6% made between $4.75-$5.24. 11% made more than $5.25.


Shipping and Transportation Industry: Classification B

This classification includes firms whose employees are engaged in the unloading of raw and/or frozen fish from vessels. This industry excludes the operation of ticket agencies and travel bureaus, and excludes the bunkering of petroleum products. The minimum wage rate for this industry is $3.92 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $4.57 to covered employees. According to survey data, no persons were paid below the minimum wage.

The reported Shipping and Transportation: Classification B classification employment was 5 covered employees among one establishment. Sixty percent earned wages of $3.92 to $4.99 per hour and 20 percent earned wages of $5.00 to $5.99 per hour (see Figure 6). Twenty percent earned wages in excess of $5.99.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $4.12 (a 5% increase) would affect 3 employees, increasing the hourly wage income by 2.6 percent and increase the average hourly wage to $4.69 per hour (see Appendix B). An increase to $4.31 (a 10% increase) would affect 3 employees, increasing the hourly wage income by 5.1 percent and would raise the average hourly rate to $4.81 per hour. Increasing the minimum to $4.51 (a 15% increase) would affect 3 employees, increasing the hourly wage income by 7.7 percent and would raise the average hourly wage rate to $4.93 per hour.

Figure 6 is a pie chart showing  the Percent Employment by Wage Range, Shipping and Transportation Industry: Classification B


Shipping and Transportation Industry: Classification C

This classification includes all other activities in the shipping and transportation industry. The minimum wage rate for this industry is $3.88 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $5.30 to covered employees. According to survey data, three persons were paid below the minimum wage.

The reported Shipping and Transportation: Classification C classification employment was 87 covered employees among six establishments. Five percent earned wages of $3.00 to $3.87 per hour and 11 percent earned wages of $3.88 to $4.24 per hour (see Figure 7). Thirteen percent earned wages of $4.25 to $4.49 per hour and twenty two percent earned wages of $4.50 to $4.99 per hour. Forty nine percent earned wages in excess of $4.99 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $4.07 (a 5% increase) would affect 5 employees, increasing hourly wage income by 0.77 percent and increase the average hourly to $5.34 per hour (see Appendix B). An increase to $4.27 (a 10% increase) would affect 25 employees, increasing hourly wage income by 1.4 percent and would raise the average hourly rate to $5.38 per hour. Increasing the minimum to $4.46 (a 15% increase) would affect 25 employees, increasing hourly wage income by 2.4 percent and would raise the average hourly wage rate to $5.43 per hour.

Figure 7 is a pie chart showing the Percent Employment by Wage Range, Shipping and Transportation Industry: Classification C


Construction Industry

The Construction Industry includes the construction, reconstruction, structural renovation and demolition of buildings, housing, highways and streets, catchments, dams and any other structure, whether publicly or privately owned. The minimum wage rate for this industry is $3.60 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $4.81 to covered employees. According to survey data, no persons were paid below the minimum wage.

The reported Construction Industry classification employment was 243 covered employees among ten establishments. Twenty percent earned wages of $3.60 to $3.99 per hour and 31 percent earned wages of $4.00 to $4.49 per hour (see Figure 8). Sixteen percent earned wages of $4.50 to $4.99 per hour and 14 percent earned wages of $5.00 to $5.49 per hour. Four percent earned wages of $5.50 to $5.99 per hour and fifteen percent earned wages in excess of $5.99 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $3.78 (a 5% increase) would affect 45 employees, increasing the hourly wage income by 0.52 percent and raise the average hourly wage rate to $4.83 per hour (see Appendix B). An increase to $3.96 (a 10% increase) would affect 48 employees, increasing the hourly wage income by 1.2 percent and would raise the average hourly rate to $4.87 per hour. Increasing the minimum to $4.14 (a 15% increase) would affect 113 employees, increasing the hourly wage income by 2.8 percent increase in wage income and would raise the average hourly wage rate to $4.94 per hour.

Figure 8 is a pie chart showing the Percent Employment by Wage Range, Construction Industry


Retailing, Wholesaling, and Warehousing Industry

This industry includes all activities related to the selling of goods and services at wholesale and retail, and it includes warehousing and other distribution activities. This classification includes the activities of importers and exporters. The minimum wage rate for this industry is $3.10 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $4.55 to covered employees. According to survey data, 58 persons were paid below the minimum wage.

The reported Retailing, Wholesaling and Warehousing Industry classification employment was 1,267 covered employees among 70 establishments. Five percent earned wages of $2.63 to $3.09 per hour and 18 percent earned wages of $3.10 to $3.24 per hour (see Figure 9). Thirteen percent earned wages of $3.25 to $3.49 per hour and 13 percent earned wages of $3.50 to $3.74 per hour. Nine percent earned wages of $3.75 to $3.99 per hour and 9 percent earned wages of $4.00 to $4.24 per hour. Four percent earned wages of $4.25 to $4.49 per hour and 3 percent earned wages of $4.50 to $4.74 per hour. Three percent earned wages of $4.75 to $4.99 per hour and twenty three percent earned wages in excess of $4.99 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $3.26 (a 5% increase) would affect 356 employees, increasing the hourly wage income by 0.88 percent and would raise the average hourly wage to $4.59 per hour (see Appendix B). An increase to $3.41 (a 10% increase) would affect 436 employees, increasing the hourly wage income by 2.0 percent and would raise the average hourly rate to $4.64 per hour. Increasing the minimum to $3.57 (a 15% increase) would affect 558 employees, increasing the hourly wage income by 3.3 percent and would raise the average hourly wage rate to $4.70 per hour.

Figure 9 is a pie chart showing the Percent Employment by Wage Range, Retailing, Wholesaling, and Warehousing Industry


Printing Industry

Containing establishments employing workers engaged in printing, job printing, and duplicating, this industry classification does not include printing by an employer that publishes a newspaper, magazine or similar publication. The minimum wage rate for this industry is $3.50 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $4.13 to covered employees. According to survey data, no persons were paid below the minimum wage.

The reported Printing Industry classification employment was 13 covered employees between 2 establishments. Thirty one percent earned wages of $3.50 to $3.99 per hour and 46 percent earned wages of $4.00 to $4.99 per hour (see Figure 10). Eight percent earned wages of $5.00 to $5.24 per hour and 15 percent earned wages of $5.25 to $5.50 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $3.68 (a 5% increase) would affect 4 employees, increasing the hourly wage income by 1.3 percent and would raise the average hourly wage to $4.19 per hour (see Appendix B). An increase to $3.85 (a 10% increase) would affect 4 employees, increasing the hourly wage income by 2.6 percent and would raise the average hourly rate to $4.24 per hour. Increasing the minimum to $4.03 (a 15% increase) would affect 10 employees, increasing the hourly wage income by 4.3 percent and would raise the average hourly wage rate to $4.31 per hour.

Figure 10 is a pie chart showing the Percent Employment by Wage Range, Printing Industry


Publishing Industry

The Publishing Industry is engaged in the publishing of newspapers, magazines or other similar publications, other than the publication of newspapers with circulation less than 4,000. The minimum wage rate for this industry is $3.63 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $8.14 to covered employees. According to survey data, seven persons were paid below the minimum wage.

The reported Publishing Industry classification employment was 21 covered employees between 2 establishments. Thirty three percent earned wages from $2.50 to $3.63 per hour. Five percent earned $3.63 to $4.99 per hour and 24 percent earned wages of $5.00 to $5.99 per hour (see Figure 11). Five percent earned wages of $6.00 to $6.99 per hour and thirty three percent earned wages in excess of $6.99 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $3.81 (a 5% increase) would affect 5 employees increasing the hourly wage income by 2.1 percent and increase the average hourly wage to $8.31 per hour (see Appendix B). An increase to $3.99 (a 10% increase) would affect 7 employees increasing the hourly wage income by 2.7 percent and would raise the average hourly rate to $8.36 per hour. Increasing the minimum to $4.17 (a 15% increase) would affect 7 employees increasing the hourly wage income by 3.4 percent increase in wage income and would raise the average hourly wage rate to $8.42 per hour.

Figure 11 is a pie chart showing the Percent Employment by Wage Range, Publishing Industry


Finance and Insurance Industry

This industry classification includes all banks and other financial institutions (whether privately or government owned), dealers and brokers of securities and commodities, and insurance carriers, agents and brokers. The minimum wage rate for this industry is $3.99 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $7.90 to covered employees. According to survey data, one person was paid below the minimum wage.

The reported Finance and Insurance Industry classification employment was 131 covered employees among 8 establishments. One percent earned wages of less than $3.99. Sixteen percent earned $4.00 to $4.24 per hour and 6 percent earned wages of $4.25 to $4.49 per hour (see Figure 12). Eleven percent earned wages of $4.50 to $4.99 per hour and 11 percent earned wages of $5.00 to $5.49 per hour. Five percent earned wages of $5.50 to $5.99 per hour and fifty three percent earned wages in excess of $5.99 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $4.19 (a 5% increase) would affect 5 employees increasing the hourly wage income by 0.16 percent and would raise the average hourly wage to $7.92 per hour (see Appendix B). An increase to $4.39 (a 10% increase) would affect 25 employees increasing the hourly wage income by 0.56 percent and would raise the average hourly rate to $7.95 per hour. Increasing the minimum to $4.59 (a 15% increase) would affect 31 employees increasing the hourly wage income by 1.1 percent and would raise the average hourly wage rate to $7.99 per hour.

Figure 12 is a pie chart showing the Percent Employment by Wage Range, Finance and Insurance Industry


Ship Maintenance Industry

The Ship Maintenance Industry classification is defined as all work activity related to ship repair and maintenance, including marine, railway, and dry dock operations. The minimum wage rate for this industry is $3.34 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $6.54 to covered employees. According to survey data, no person was paid below the minimum wage.

The reported Ship Maintenance Industry classification employment was 25 covered employees for one establishment. Four percent earned wages of $3.34 to $4.24 per hour. Eight percent earned $4.25 to $4.99 per hour and 20 percent earned wages of $5.00 to $5.49 per hour (see Figure 13). Twenty percent earned wages of $5.50 to $5.99 per hour and 8 percent earned wages of $6.00 to $6.24 per hour. Forty percent earned wages in excess of $6.24 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $3.51 (a 5% increase) would affect no employees, therefore no increase in the in the hourly wage income and the average hourly wage would remain at $6.54 per hour (see Appendix B). An increase to $3.67 (a 10% increase) would affect no employees, therefore no increase would occur in the hourly wage income and the average hourly wage would remain at $6.54 per hour. Increasing the minimum to $3.84 (a 15% increase) would affect no employees, therefore no increase would occur in the hourly wage income and the average hourly wage would remain at $6.54 per hour.

Figure 13 is a pie chart showing the Percent Employment by Wage Range, Ship Maintenance Industry


Hotel Industry

This industry includes all activities connected with the operation of hotels, motels, apartment hotels, and tourist courts engaged in providing lodging for the general public. The minimum wage rate for this industry is $2.86 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $4.07 to covered employees. According to survey data, three persons were paid below the minimum wage.

The reported Hotel Industry classification employment was 139 covered employees among four establishments. Two percent earned wages less than $2.86 per hour. Thirty one percent earned $2.86 to $3.24 per hour and 12 percent earned wages of $3.25 to $3.49 per hour (see Figure 14). Nine percent earned $3.50 to $3.74 per hour and 4 percent earned wages of $3.75 to $3.99 per hour. Sixteen percent earned $4.00 to $4.99 per hour and 9 percent earned wages of $5.00 to $5.99 per hour. Seventeen percent earned wages in excess of $5.99 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $3.00 (a 5% increase) would affect 26 employees, increasing the hourly wage income by 0.19 percent would raise the average hourly wage to $4.08 per hour (see Appendix B). An increase to $3.15 (a 10% increase) would affect 42 employees, increasing the hourly wage income by 1.1 percent and would raise the average hourly rate to $4.12 per hour. Increasing the minimum to $3.29 (a 15% increase) would affect 64 employees, increasing the hourly wage income by 2.4 percent and would raise the average hourly wage rate to $4.17 per hour.

Figure 14 is a pie chart showing the Percent Employment by Wage Range, Hotel Industry


Tour and Travel Services Industry

This industry includes the operation of tourist bureaus and of travel and passenger ticket services and agencies. This industry does not include the operation of freight-shipping agencies. The minimum wage rate for this industry is $3.31 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $6.71 to covered employees. According to survey data, no persons were paid below the minimum wage.

The reported Tour and Travel Service Industry classification employment was 5 covered employees between 2 establishments. Twenty percent earned wages $3.31 to $4.49 per hour and 20 percent earned wages of $4.50 to $6.49 per hour (see Figure 15). Sixty percent earned wages in excess of $5.25 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $3.48 (a 5% increase) would affect no employees, therefore no increase in the in the hourly wage income and the average hourly wage would remain at $6.71 per hour (see Appendix B). An increase to $3.64 (a 10% increase) would affect 1 employee, increasing the hourly wage income by 0.42 percent and would raise the average hourly rate to $6.74 per hour. Increasing the minimum to $3.81 (a 15% increase) would affect 1 employee, increasing the hourly wage income by 0.92 percent and would raise the average hourly wage rate to $6.77 per hour.

Figure 15 is a pie chart showing the Percent Employment by Wage Range, Tour and Travel Services Industry


Private Hospitals and Educational Institutions Industry

This industry includes the activities associated with the operation of private hospitals, nursing homes, and related institutions primarily engaged in the care of the sick, aged, or mentally or physically disabled. This classification also includes preschools, elementary or secondary schools, or institutions of higher learning. However, this classification does not include any employees working for agencies of the Government of American Samoa. The minimum wage rate for this industry is $3.33 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $3.23 to covered employees. According to survey data, 43 persons were paid below the minimum wage.

The reported Private Hospital and Educational Institutions Industry classification employment was 59 covered employees for 1 establishment. Forty percent earned wages from $3.00 to $3.07 per hour and 16 percent earned wages of $3.08 to $3.14 per hour (see Figure 16). Ten percent earned wages from $3.15 to $3.24 per hour and 8 percent earned wages of $3.25 to $3.32 per hour. Eight percent earned wages from $3.33 to $3.49 per hour and 15 percent earned wages of $3.50 to $3.99 per hour. Ten percent earned wages from $4.00 to $4.10 per hour

If there were an increase in the minimum wage, the direct effect of raising the minimum to $3.50 (a 5% increase) would affect 48 employees, increasing the hourly wage by 9.6 percent and would raise the average hourly wage to $3.54 per hour (see Appendix B). An increase to $3.66 (a 10% increase) would affect 52 employees, increasing the hourly wage by 13.9 percent and would raise the average hourly rate to $3.69 per hour. Increasing the minimum to $3.83 (a 15% increase) would affect 56 employees, increasing the hourly wage by 18.8 percent and would raise the average hourly wage rate to $3.84 per hour.

Figure 16 is a pie chart showing the Percent Employment by Wage Range, Private Hospitals and Educational Institutions Industry


Miscellaneous Activities Industry

The Miscellaneous Activity Industry classification contains a wide variety of business activities that are not covered by any other industry classification. The minimum wage rate for this industry is $2.57 effective October 1, 2003. In October of 2004, these establishments paid an average straight-time wage of $5.01 to covered employees. According to survey data, no persons were paid below the minimum wage.

The reported Miscellaneous Industry classification employment was 103 covered employees among 12 establishments. Four percent earned wages $2.57 to $2.99 per hour and 14 percent earned wages of $3.00 to $3.24 per hour (see Figure 17). Nine percent earned wages $3.25 to $3.49 per hour and 14 percent earned wages of $3.50 to $3.74 per hour. Six percent earned wages $3.75 to $3.99 per hour and 13 percent earned wages of $4.00 to $4.49 per hour. Nine percent earned wages $4.50 to $4.99 per hour and Thirty one percent earned wages exceeding $4.99 per hour.

If there were an increase in the minimum wage, the direct effect of raising the minimum to $2.70 (a 5% increase) would affect 2 employees, increasing the hourly wage income by 0.1 percent and would raise the average hourly wage to $5.01 per hour (see Appendix B). An increase to $2.83 (a 10% increase) would affect 2 employees, increasing the hourly wage income by 0.1 percent and would raise the average hourly rate to $5.01 per hour. Increasing the minimum to $2.96 (a 15% increase) would affect 2 employees, increasing the hourly wage income by 0.22 percent and would raise the average hourly wage rate to $5.02 per hour.

Figure 17 is a pie chart showing the Percent Employment by Wage Range, Miscellaneous Activities Industry


Garment Manufacturing Industry

This industry classification includes the manufacture of articles of apparel and clothing by knitting, sewing, spinning, and other similar processes. However, it does not include manufacturing, processing, or mending of apparel in retail or service establishments. There were no Garment Manufacturing establishments surveyed in November 2004 and this lack of survey data precluded an analysis of wage ranges or of alternative minimum wage impacts. However, it should be noted that the minimum wage rate for Garment Manufacturing was increased to $2.68 on October 1, 2002.

No business classified in the garments manufacturing industry exist on the island.

The minimum wage rate for this industry was set at $2.68 effective October 1, 2003. An increase in the minimum wage of 5% would raise the wage to $2.81, a 10% increase corresponds to a wage of $2.95 and a 15% increase would increase the minimum wage to $3.08.

Bottling, Brewing, and Dairy Products Industry

This industry classification includes the bottling, sale and distribution of soft drinks and malt beverages and the processing, distribution and manufacture of milk and other dairy products There were no Bottling, Brewing and Dairy Products establishments surveyed in November 2004 and this lack of survey data precluded an analysis of wage ranges or of alternative minimum wage impacts.

The two businesses that were contacted for this industry did not participate in the November 2004 survey.

The minimum wage rate for this industry was set at $3.19 effective October 1, 2003. An increase in the minimum wage of 5% would raise the wage to $3.35 per hour, a 10% increase corresponds to a wage of $3.51 per hour and a 15% increase would increase the minimum wage to $3.68 per hour.


36 U.S. Department of Commerce, Population and Housing Profile: 2000, 2000 Census of Population and Housing, American Samoa. www.census.gov/prod/cen2000/island/ASprofile.pdf.
37 U.S. Department of Labor, 2002 wage and Hour Survey Results for American Samoa