Minimum Wage Bill Slammed In American Samoa

[bw17]

Starkist Samoa, Gov. Togiola T.A. Tulafono and some local businesses have voiced their disappointment with the passage of a federal bill, that includes provisions to increase minimum wages for American Samoa over a period of time.

StarKist Samoa had planned to launched next month the expansion of its tuna pouch production, after it was transferred early this year from Ecuador. The company planned to hire between 200-300 workers, but some employees say they were informed Wednesday that this project is on hold. - ADVERTISEMENT - Bank of Hawaii Small Business Resource

Provisions of the federal supplemental bill that provide millions of dollar for the Iraq war, signed last Friday by President Bush, mandates a 50 cents per hour hike for American Samoa beginning 60 days after the bill’s enactment. It also mandates an additional 50 cents increase every year thereafter until the future U.S. continental rate of $7.25 is reached.

The most affected under the minimum wage hike are the two canneries-StarKist Samoa, owned by San Francisco-based Del Monte Food Inc., and COS Samoa Packing, owned by San Diego-based Chicken of the Sea International- the largest private employers in the territory with a combined workforce of 5,000. Most of them, working on the factories' production lines, are minimum wage earners.

Del Monte spokesperson, Mary G. Sestric, says StarKist "is disappointed" with the passage of the minimum wage bill, adding that "the initial increase, combined with the further annual automatic increases has the potential to radically change the economics of tuna production and negatively impact American Samoa."

"We are committed to working closely with local leaders to identify a solution that is in the best interest of the people of American Samoa; while, at the same time, allowing StarKist to remain competitive in the global tuna marketplace," Sestric said via e-mail from San Francisco responding to questions.

"We are concerned that without a successful resolution, the economic realities will force StarKist to review ongoing tuna sourcing and operating plans as well as altering our current investment program to expand our Samoan operations, both of which will lead to lower levels of employment and we believe will not be in the best interest of all parties concerned," she said.

[ClaireSolt]

I agree with you, and I think if we do another amnesty, we will continue to have two econmies, one with many benefits and guarantees and another with none.

[CholeraJoe]

America’s offshore slave colonies (Guam, Samoa, Puerto Rico, USVI) only like something when it involves no taxes or free handouts.

[T-Bird45]

What is the USA doing with Samoa? Cut them loose.

Samoa is just raising the offensive/defensive linemen the rest of America won't.

Alternative answer: https://www.cia.gov/library/publications/the-world-factbook/geos/aq.html

Primary reason is noted in the CIA webpage above: best deepwater natural port in the SW Pacific, was strategically important in WW2 and maintained afterwards for that same reason.