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Here's your GFT eUpdate for October 1, 2021

Minimum Wage for Salary Employees

Once again it is time to talk about the low wages in Guam. Yep, Guam needs a raise. The minimum wage is the lowest wage that employers can legally pay their employees. When it comes to the government of Guam, ensuring that working families in Guam are earning at least minimum wage has become an all too frequent and necessary responsibility placed on the Guam Federation of Teachers Union.

You likely know that the minimum wage on Guam has recently increased to $9.25 per hour, but did you know, the minimum salary level required for an employee to be considered exempt has been at $684 per week, or the equivalent to $35,568 per year since January 1st, 2020, in the US mainland and only $455 per week on Guam?

If you knew this, you likely know more than your elected government officials. Presently, Government Guam Employees are being paid pursuant to the Competitive Wage Act of 2014. This wage act purports to pay less than stateside minimum wage in many instances, especially for positions where employees hold exempt status or salaried positions. The number of government positions paying less than stateside minimum wages rise into the hundreds and include pay grades A-K on the General Pay plan for salaried employees and A- D for hourly employees.

If you are a government of Guam Employee, earning a salary of less than $684 per week, you are likely underpaid and deserving of a raise. We would like to speak to you. Call GFT Union at 735-4390 to make an appointment with one of our field representatives today.

Where Does Your Pay Rank?

See Pay Comparison

As the world slowly recovers from the coronavirus pandemic, one short-term event to worry about is inflation. Inflation is a decline of purchasing power that occurs when the cost of goods increase over time. Your purchasing ability has gone down on Guam with stagnant wages, heavy job losses in the private sector due to a lack of tourism, and an increase cost of goods. Some analysts think that the high inflation is temporary, while others think it will last a lot longer.

What can be done about your loss of purchasing power?

The first step is to see where Guam is in comparison to the rest of the United States. Have you ever wondered where your pay ranks compared to Guam’s average? How about the national average? How about by state?

As discouraging as it may appear, this guides the discussion of where we should be. Do not be fooled into thinking that Guam’s wages are low because our cost of living is low. In fact, our cost of living is a lot higher here than in the states. The consumer price index (CPI) for the United States accelerated the quickest in the last 30 years, excluding food and energy. The real average hourly earnings fell yet again. The only reason wages have remained flat is that the Guam Legislature stacked the deck against the unions from negotiating wages for most agencies. The Guam Legislature is the reason government workers can double their salaries by working in the states.

Let the Guam Legislature know that the last wage increase in 2014 was actually a wage compression. A wage compression is increasing the bottom salaries while leaving the top relatively untouched. This is great for new employees but the gains are eroded quickly in comparison to our national counterparts. Despite the downturn in the economy, planning now would accelerate recovery efforts once tourism improves.