Welcome to FIS   Sponsored By
United States
Subscribe to FIS | Register with FIS | Advertise with FIS | Newsletter | About FIS | Contact us
   


US Congressman Eni Faleomavaega. (Photo: House.gov)

Minimum wage hikes hurt local economy: GAO, StarKist

AMERICAN SAMOA
Thursday, June 30, 2011, 22:30 (GMT + 9)

StarKist Co has expressed agreement with the US Government Accountability Office (GAO) regarding American Samoa's diminishing competitive edge due to the federally mandated minimum wage hikes and their harm to the local economy. The territory’s US Congressman Eni Faleomavaega has vowed to make efforts toward delaying future minimum wage increases to avert further job losses until the American Samoa Government can implement a plan to diversify its economy. 

GAO has just released the latest report, mandated by the US Congress, on the effects of a federal law that commands a yearly USD 0.50 cent-increase per hour in the minimum wage in American Samoa until it reaches the US minimum wage level. 

American Samoa’s economy relies on a single industry which is now tremendously competitive on a global basis, said Mary Sestric, spokesperson for StarKist, which owns the local cannery, reports Samoanews.

StarKist "has expressed concerns about the costs of operating in American Samoa," GAO reported.

The agency noted that the tuna canning industry sustained a stable flow of exports to the US, despite foreign competition, until 2008, at which point these exports declined until 2010.

Also, the report clarified that without a minimum wage hike in 2010, the median wage of tuna canning workers of USD 4.76 did not rise. In its April 2010 minimum wage impact report, GAO said that from 2007-10, the median wage among workers in the tuna canning industry jumped by USD 1.46 or 44 per cent.

Future wage increases would impact 99 per cent of existing workers in the tuna canning industry by the time the minimum wage reaches USD 7.25, and pushes the average annual cost per worker in 2016 by USD 4,660 since June last year.

GAO also communicated that the two employers in the territory’s tuna canning industry reported that they had slashed costs between June 2009-June 2010 by laying off workers, cutting overtime hours, freezing hiring, decreasing benefits, temporarily closing and raising prices, among other measures.

Starkist and the other employer have been attributing most of their actions mainly to the minimum wage increases.

Further, GAO said that their analysis “suggests that moving tuna cannery operations […] from American Samoa to another tariff-free country with lower labor costs would significantly reduce cannery operating costs."

Because tuna facilities in American Samoa are among few in the US which can satisfy US Government contract requirements, however, maintaining operations in American Samoa would permit the facility to go on competing for these contracts, it says.

"Despite the advantages of moving some operations to other countries, the remaining cannery's lease obligation through 2013 and the cost of building new facilities elsewhere may pose obstacles to near-term relocation," the report adds. 

Congressman Faleomavaega has requested a hearing on the GAO report and written to the chair of the Natural Resources Committee on Fisheries, Wildlife, Oceans and Insular Affairs, John Fleming, asking for help.

Related articles:

- Starkist lays off 150 employees 
- Hundreds to lose jobs in American Samoa cannery 

By Natalia Real
[email protected]
www.fis.com

 


 Print


Click to know how to advertise in FIS
MORE NEWS
United Kingdom
Dec 3, 06:50 (GMT + 9):
IN BRIEF - Scots fishermen express disappointment at EU-Norway blue whiting catch arrangements
China
Dec 3, 01:30 (GMT + 9):
Pingtan adds two new jiggers to its fleet
Spain
Dec 3, 00:20 (GMT + 9):
Cadiz Port Authority grants sole farming centre permit
China
Dec 2, 23:50 (GMT + 9):
USD 36 million seafood smuggling operation discovered
Peru
Dec 2, 23:20 (GMT + 9):
Fishing sector production continued to grow in October
Denmark
Dec 2, 23:10 (GMT + 9):
Maersk Line strengthens growth strategy through Hamburg line acquisition
Australia
Dec 2, 23:00 (GMT + 9):
White spot disease confirmed in prawn farm
Denmark
Dec 2, 22:40 (GMT + 9):
Genomic selection contributes to environment adapted rainbow trout production
United Kingdom
Dec 2, 22:00 (GMT + 9):
EN BREVE - Scottish Fishermen’s Federation scoops green energy award
United States
Dec 2, 22:00 (GMT + 9):
IN BRIEF - Company to pay USD 207,000 after spill killed Big Thompson fish
Worldwide
Dec 2, 22:00 (GMT + 9):
IN BRIEF - Chemical-soaked microplastics don't change fish personalities, but could accumulate in our sea food
Norway
Dec 2, 22:00 (GMT + 9):
IN BRIEF - Oslo Airport considers seafood centre after recent freighter wins
New Zealand
Dec 2, 22:00 (GMT + 9):
IN BRIEF - Best fish guide doesn't paint an accurate picture - Moana NZ
Australia
Dec 2, 22:00 (GMT + 9):
IN BRIEF - Cap on salmon farms in Macquarie Harbour needs to go further to reduce damage, environmentalists say
United Kingdom
Dec 2, 22:00 (GMT + 9):
IN BRIEF - Community groups oppose plans to expand salmon fish farming in Arran



Lenguaje
FEATURED EVENTS
  
TOP STORIES
King crab season extended exceptionally
Chile The fishermen of Magallanes will be able to continue catching king crab until December 10, as it was informed by the Undersecretariat of Fisheries and Aquaculture.
Pingtan adds two new jiggers to its fleet
China Global fishing company Pingtan Marine Enterprise Ltd. has completed construction on its two squid jigging vessels, which are ready to depart for their fishing designation.
EJF guides French retailers and firms to combat illegal fishing
France Environmental Justice Foundation has issued a new advisory note for French industry, retailers and brands on the risks associated with illegal fishing.
EU-Mauritania agreement implies success for the Spanish fleet, ensures Govt
Spain To the Spanish Government, the commitments reached in the Extraordinary Joint Commission of the fisheries agreement between the EU and Mauritania imply a success for the Spanish fleet and for the sustainable management of fishing surpluses in this country.
 
Maruha Nichiro Corporation
Nichirei Corporation -Headquarter-
Pesquera El Golfo S.A.
Ventisqueros - Productos del Mar Ventisqueros S.A
Wärtsilä Corporation -Wartsila Group Headquarter-
ITOCHU Corporation -Headquarter-
BAADER - Nordischer Maschinenbau Rud. Baader GmbH+Co.KG (Head Office)
Inmarsat plc - Global Headquarters
Marks & Spencer
Tesco PLC (Supermarket) - Headquarters
Nueva Pescanova, S.L. - Group Headquarters
Sea Harvest Corporation (PTY) Ltd.
I&J - Irvin & Johnson Holding Company (Pty) Ltd.
Blue Continent Products (Pty) Ltd - (Oceana Group Limited)
Pesquera San Jose S.A.
Nutreco N.V. - Head Office
CNFC China National Fisheries Corporation - Group Headquarters
W. van der Zwan & Zn. B.V.
SMMI - Sunderland Marine Mutual Insurance Co., Ltd. - Headquarters
Icicle Seafoods Inc. -Headquarter-
Starkist Seafood Co. - Headquearters
Trident Seafoods Corp.
American Seafoods Group LLC - Head Office
Marel - Group Headquarters
SalMar ASA - Group Headquarters
Sajo Industries Co., Ltd
Hansung Enterprise Co.,Ltd.
BIM - Irish Sea Fisheries Board (An Bord Iascaigh Mhara)
CEFAS - Centre for Environment, Fisheries & Aquaculture Science
COPEINCA ASA - Corporacion Pesquera Inca S.A.C.
Chun Cheng Fishery Enterprise Pte Ltd.
Food Project (Siam) Co., Ltd.
VASEP - Vietnam Association of Seafood Exporters & Producers
Gomes da Costa
Furuno Electric Co., Ltd. (Headquarters)
NISSUI - Nippon Suisan Kaisha, Ltd. - Group Headquarters
FAO -Food and Agriculture Organization- Fisheries and Aquaculture Department (Headquarter)
Hagoromo Foods Co., Ltd.
Koden Electronics Co., Ltd. (Headquarters)
A.P. Møller - Maersk A/S - Headquarters
BVQI - Bureau Veritas Quality International (Head Office)
UPS - United Parcel Service, Inc. - Headquarters
Hamburg Süd Group - (Headquearters)
Armadora Pereira S.A. - Group Headquarters
NOAA - National Oceanic and Atmospheric Administration (Headquarters)
Omega Protein Corporation -Headquarter-
Marona S.A.
Marine Harvest ASA - Headquarters
Marubeni Europe Plc -UK-
Findus Ltd
Icom Inc. (Headquarter)
WWF Centroamerica
Oceana Group Limited
The David and Lucile Packard Foundation
Ajinomoto Co., Inc. -Headquarter-
Friosur S.A. - Headquarters
Cargill, Incorporated - Global Headquarters
Benihana Inc.
Leardini Pescados Ltda
Mitsubishi Corporation Marine Products Depts. D.Team
CJ Corporation  -Holding Headquarter-
Greenpeace International - The Netherlands
David Suzuki Foundation
Fisheries and Oceans Canada -Communications Branch-
Mitsui & Co.,Ltd - Headquarters
Ocean Trawlers Group - Ocean Trawlers HK Ltd.
Natori Co., Ltd.
Carrefour Supermarket - Headquarters
FedEx Corporation -Headquarter-
AKBM - Aker BioMarine ASA
Seafood Choices Alliance -Headquarter-
Austevoll Seafood ASA
Walmart / Wal-Mart Stores, Inc. (Supermarket) -Headquarter-
New Japan Radio Co.Ltd (JRC) -Head Office-
Gulfstream JSC
INVE Group - Head Office
Marine Stewardship Council - MSC Worldwide Headquarters
Royal Dutch Shell plc (Headquarter)
Genki Sushi Co.,Ltd -Headquarter-
Iceland Pelagic ehf
AXA Assistance Argentina S.A.
Caterpillar Inc. - Headquarters
Tiger Brands Limited
Morpol ASA - Group Headquarters
SeaChoice
National Geographic Society
AmazonFresh, LLC - AmazonFresh

Copyright 1995 - 2016 Fish Info & Services Co.Ltd| All Rights Reserved.   DISCLAIMER