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
editorial@fis.com
www.fis.com

 


 Print


Click to know how to advertise in FIS
MORE NEWS
United States
Dec 19, 04:00 (GMT + 9):
Arctic warming poses new challenges to fishing
Argentina
Dec 19, 03:40 (GMT + 9):
Extended catch for whitemouth croaker in area shared with Uruguay
Canada
Dec 19, 03:00 (GMT + 9):
Cooke’s expansion plans delayed in Nova Scotia
Australia
Dec 19, 02:40 (GMT + 9):
IN BRIEF - One of world's most invasive fish detected in New South Wales for first time
United States
Dec 19, 02:40 (GMT + 9):
IN BRIEF - Shrimp season to close in some parts of the state
Viet Nam
Dec 19, 02:40 (GMT + 9):
IN BRIEF - Seafood exports in 2014 may reach nearly USD 8 billion
United Kingdom
Dec 19, 02:40 (GMT + 9):
IN BRIEF - Iglo Group to roll out MSC logo on all wild fish lines
Brazil
Dec 19, 02:10 (GMT + 9):
Mato Grosso leads the Brazilian aquaculture production
France
Dec 19, 01:50 (GMT + 9):
IN BRIEF - Corporate governance changes at SAPMER
Viet Nam
Dec 19, 01:50 (GMT + 9):
IN BRIEF - South Korea FTA signed: seafood enjoys benefits
Philippines
Dec 19, 01:50 (GMT + 9):
IN BRIEF - PH shrimp trade good, but laggard in Asia
Netherlands
Dec 19, 01:20 (GMT + 9):
ASC to develop one core fish farm standard
Spain
Dec 18, 23:50 (GMT + 9):
EUR 800,000 granted to fleet operating in Mauritania
Norway
Dec 18, 23:30 (GMT + 9):
Healthier salmon through exercise and better sorting
United Kingdom
Dec 18, 23:00 (GMT + 9):
EU deal will mean an additional GBP 10 million for Scottish fleet



Lenguaje
FEATURED EVENTS
  
TOP STORIES
Norwegian fish intake offers no concerning health risks
Norway Fish consumption benefits clearly outweigh its risks, since the current contaminant levels as well as that of other known undesirable substances offer no concern.
New labelling and biotoxin analysis worry mussel industry
Spain This Saturday the new rules of the EU allowing packaging mussel without explicit mention of the country of origin or the species used will come into force, which concerns raft fishermen and mussel farmers from Galicia.
Odisha seeks to increase seafood export to Portugal
India Odisha's Government proposes to boost seafood exports from this market to Portugal, given that this nation is one of those having the highest worldwide's per capita consumption of marine food.
Massachusetts AG calls for reauthorization of fisheries legistlation
United States In a letter sent on Friday to the Chair of the House Committee on Natural Resources, Attorney General of Massachusetts stated her strong support of the reauthorization of the Magnuson-Stevens Act.
 
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 (Head Office)
Inmarsat plc - Global Headquarters
Marks & Spencer
Tesco PLC (Supermarket) - Headquarters
Pescanova, S.A. - Group Headquarters
Sea Harvest Corporation (PTY) Ltd.
I&J - Irvin & Johnson Limited
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 ehf - 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-
Grupo Calvo - Luis Calvo Sanz, S.A. (Group 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 - 2014 Fish Info & Services Co.Ltd| All Rights Reserved.   DISCLAIMER