Guam's minimum wage will be $8.75 an hour by March 2020, and $9.25 an hour by March 2021.

Gov. Lou Leon Guerrero signed two workforce bills into law on Monday.

Bill 136, now Public Law 35-38, implements the minimum wage increase over a two-year period. Employers are mandated by the law to pay no less than $8.75 by March 2020, and no less than $9.25 by March 2021. Employers are free to implement the increase any time leading up to this deadline.

Bill 128, now Public Law 35-39, extends the Guam Registered Apprenticeship Program for five years and expands the list of careers and companies eligible to participate.

"It's not just about raising the minimum wage and giving them more buying power, which is good for our economy," Leon Guerrero said. "It's also about moving them onto higher career pathways."

"There was a big, overwhelming support for both the minimum wage and the apprenticeship," she said. "We are not just promoters of the minimum wage, we are also promoters of opportunities that improve their skills. Passing these two bills at the same time makes for a really good economic plan, and economic support and enhancement throughout the community."

About 3,500 employees will benefit from the minimum wage increase, and have been eagerly awaiting the law, said Sen. Joe San Agustin, who sponsored the minimum wage increase bill.

San Agustin thanked the governor for signing the bill into law on Monday, stating that Leon Guerrero is giving the people of Guam a hand up, not a handout.

All 15 senators voted yes on the bill earlier this month, and the governor has been vocal in her support to raise the minimum wage. The bill had 10 Democrats as sponsors, led by San Agustin. All five Republicans voted for it as well, despite initial reservations from some.

Chamber, GHRA opposed increase

The Guam Chamber of Commerce, the largest business organization on island, and the Guam Hotel and Restaurant Association opposed the measure.

Both organizations said it should be directly related to worker productivity and economic expansion, not government mandate.

"While many large businesses may be able to sustain such an increase, the cornerstone of our economic prosperity lies within our small businesses, who will be the ones greatly affected by the passage of Bill 136-35 into law," the Chamber said in a statement.

Senators said the actual impacts of a minimum wage increase are never as bad as the predictions from those who oppose raising the wage.

According to research conducted after Guam increased its minimum wage to $8.25 in 2015, some 46% of surveyed businesses did not increase the price of goods or services. 65% of the businesses did not reduce employee hours to compensate for the increased pay, and 75% of the businesses did not reduce their number of employees.

Registered Apprenticeship Program

Extending the Guam Registered Apprenticeship Program for five years is an opportunity to elevate Guam's workforce as well, according to Leon Guerrero.

The Guam Registered Apprenticeship Program offers offers a 50% tax credit to businesses that construct an apprenticeship or pre-apprenticeship program on island. The Guam Department of Labor has given nearly $30 million in tax credits to businesses that have availed of the program and up-skilled workers, including Docomo and GTA, according to according to David Dell'Isola, director of the Guam Department of Labor..

Apprenticeships offer a viable pathway for career advancement, said Dell'Isola. Keeping the Guam Registered Apprenticeship Program alive for another five years offers incentive for more businesses to provide apprenticeship opportunities on island.

About 1,000 people have been placed in apprenticeship or pre-apprenticeship programs since start the of the Leon Guerrero-Tenorio administration, according to the governor.

The Guam Hotel and Restaurant Association's pre-apprenticeship program began last month, with 284 residents enrolled.

"This program is a win, win, win," said Sen. Régine Biscoe Lee, who sponsored the apprenticeship bill. "It's a win for employers, they're able to have that very skilled, and trained-up workforce, It's a win for our employees and our wage-earners, because it gives them opportunities to be able to provide more for their families. And it's certainly a win for for the government and our economy as a whole."

Reporter Anumita Kaur covers military, business, tourism and more on Guam. Follow her on Twitter @anumitakaur. Reach her at akaur@guampdn.com.

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