Welcome to FIS   Sponsored By
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
Indonesia
Jul 22, 03:20 (GMT + 9):
INPLF joins a global collaboration to research fishing communities
United States
Jul 22, 03:00 (GMT + 9):
IN BRIEF - Shellfish Harvest Suspended for Delaware Bay and Inland Rivers
United States
Jul 22, 03:00 (GMT + 9):
IN BRIEF - Oysters in Seattle Linked to Spike in Vibriosis Cases
Spain
Jul 22, 02:20 (GMT + 9):
Lanzarote and Fuerteventura are the Canary Islands with highest toxic microalgae concentration
Thailand
Jul 22, 02:20 (GMT + 9):
CPF reduces use fishmeal in shrimp feed
Canada
Jul 22, 02:00 (GMT + 9):
IN BRIEF - Shrinking shrimp catch sparks worry for one of Eastern Canada's most important fisheries
Canada
Jul 22, 00:20 (GMT + 9):
Snow crab fishery closes to protect right whales
Peru
Jul 22, 00:00 (GMT + 9):
Document highlights effectiveness in anchovy juvenile protection
Japan
Jul 21, 23:50 (GMT + 9):
Maruha Nichiro improves earnings aided by foreign gains
United Kingdom
Jul 21, 23:00 (GMT + 9):
IN BRIEF - IPNLF joins global partnership project to enhance research into global coastal communities
Canada
Jul 21, 22:30 (GMT + 9):
Court orders environment assessment of Grieg's aquaculture project
Worldwide
Jul 21, 22:00 (GMT + 9):
SAMS leads global project to ensure seaweed sustainability
Spain
Jul 21, 21:40 (GMT + 9):
AZTI publishes guide to minimize aquaculture by-products and waste
United States
Jul 21, 07:30 (GMT + 9):
IN BRIEF - The Fight for Healthy Fisheries Resurfaces in Congress
Norway
Jul 21, 07:30 (GMT + 9):
IN BRIEF - How do we assess the welfare of farmed salmon?



Lenguaje
FEATURED EVENTS
  
TOP STORIES
Snow crab fishery closes to protect right whales
Canada Fisheries and Oceans Canada decided the closure of snow crab season in the Southern Gulf of St. Lawrence with the aim of protecting North Atlantic right whales from risks posed by the crustacean fishing gear in the area.
INPLF joins a global collaboration to research fishing communities
Indonesia A team of international partners and local stakeholders is to develop a project intended to help build long-term research capability for marine planning in East and Southeast Asia over the next four years and support local coastal communities.
NGO urges international entity to probe Hawaii's fleet labour conditions
United States Turtle Island Restoration Network requested the Inter-American Human Rights Commission to determine the responsibility of the United States for human rights violations against foreign workers in Hawaii's longline fishing fleet.
Bottom trawling environmental effects on the seabed quantified
United Kingdom An international collaboration of scientists that conducted a global meta-analysis of 70 comparative and experimental studies on the effects of bottom trawling were able to quantify the relationship between the reduction of seabed animals and penetration of the fishing equipment into the seabed.
 
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
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. - Headquarters
Friosur S.A. - Headquarters
Cargill, Incorporated - Global Headquarters
Benihana Inc.
Leardini Pescados Ltda
Mitsubishi Corporation Marine Products Depts. D.Team
CJ Corporation  - Group Headquarters
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 - 2017 Fish Info & Services Co.Ltd| All Rights Reserved.   DISCLAIMER