Congressman To Meet With Thai Union On Samoa Tuna Workers Lay-offsff

U.S. Congressman Faleomavaega announced that he has requested to meet with the chairman and president of Thai Union during his upcoming visit to Thailand scheduled for the July recess when Congress is out of session.

Faleomavaega, who chairs the Foreign Affairs’ Subcommittee on Asia, the Pacific, and the Global Environment, will be in Thailand on July 1-2.

In his letter to Thiraphong Chansiri, the congressman said his request for a meeting “is to discuss your tuna operations in the Asia Pacific region, and the future of your subsidiary, Chicken of the Sea/Samoa Packing, in American Samoa”.

He said recently, Chicken of the Sea (COS) announced that it would lay off 200 workers in American Samoa as a result of legislation, which increases minimum wage by $0.50 per hour beginning July 24, 2007, and every year thereafter until wages in the Territory are comparable to the United States.

Faleomavaega told Chansiri that on June 11, Chicken of the Sea Vice President of Operations Jim Davet wrote a letter to competitor Del Monte, stating that your subsidiary has “conducted an extensive analysis of the minimum wage bill and its impact on our business. If the US Government does not act quickly, Samoa Packing will have to reduce its workforce by 80% within the next three years.”

The congressman said Davet further states, “The current tax legislation Congressman Faleomavaega has proposed will not keep Samoa Packing from having to make this work force reduction. Therefore, Chicken of the Sea cannot support Congressman Faleomavaega’s 30A tax legislation.”

While he was not copied on Davet’s letter, Faleomavaega said he wants Chansiri to know that the law Davet is referring to also directs the Department of Labor to begin a study no later than 60 days after enactment to assess the impact of the wage increases, and project the impact of further wage increases on living standards and rates of employment in American Samoa and CNMI.

The Labor Department is mandated to issue its report to Congress no later than eight months after the day of enactment rather than 32 months later as originally proposed.

”In other words, if the Department of Labor finds that the economy cannot bear this increase, then Congress will reconsider its position,” Faleomavaega said.

Regarding 30A tax credits, Faleomavaega said he understands this credit is worth about $5 million a year in savings to Chicken of the Sea.

”Last year, my colleagues in the US Congress supported my efforts to extend this credit for two years,” continued Faleomavaega. “This year, the Honorable Charles Rangel, Chairman of the House Committee on Ways and Means, which has oversight for taxes, has agreed to my request of providing a ten-year extension which would provide Chicken of the Sea with more than a $50 million tax break.”

Faleomavaega said that in light of Davet’s letter implying that Chicken of the Sea does not want these benefits, “I would like to meet with you since I suppose Mr. Davet does not ultimately speak for Chicken of the Sea or Thai Union.”

Faleomavaega said Chicken of the Sea CEO John Signorino gave him his commitment last November and again in January that COS would support 30A tax credits. Having received his commitment and the support of Chairman Rangel, he said Signorino decided, upon further review, that COS would like the federal government to offer up some credit other than 30A, as well as an energy subsidy.

”Unfortunately, the US government is not in the business of subsidizing tuna canning operations. However, Chicken of the Sea, has been subsidized by the American Samoa Government (ASG) since it began doing business in the islands more than 50 years ago,” said Faleomavaega.
 
”For example, COS does not pay one penny for the healthcare costs of its workers because ASG assumes these costs. It is my understanding that this subsidy costs ASG more than $5 million per year. ASG also provides local tax breaks to COS and StarKist which ASG does not make public but which I suspect over the years has totaled millions of dollars.”

The congressman informed Chansiri that workers in American Samoa are also paid well below the US federal minimum wage of $5.15 per hour. In fact, he said for too long local workers have been paid too little and “it is shameful that corporate executives who are paid millions in the US now complain that the hard-working Samoans upon whose backs they have made their profits will now receive a small increase of $0.50 per hour, or less than $1,000 per year per employee.”

”While I am very aware that tuna is a labor-intensive, global commodity and follows international wages and while I also know that wages in Samoa are currently almost five times higher than the international wages competitor canners pay to process and clean tuna fish, I do not support the assumption that a slight increase in minimum wage should lead to automatic job loss, as Mr. Davet has put forth,” he continued.

”If this were the case, Chicken of the Sea should be equally troubled by the exorbitantly high salaries of its corporate executives.”

The congressman said that to date, he said has not heard Chicken of the Sea call for a review of its corporate salaries. “Therefore, if and when Chicken of the Sea decides to lay off 200 cannery workers or move production elsewhere, as Mr. Davet has threatened in response to recently passed legislation, I will make it clear to the people of American Samoa and the US Congress that Chicken of the Sea’s decision to move its business has nothing to do with minimum wage but has everything to do with corporate profits,” Faleomavaega said. “It is not helpful for a Vice President of Chicken of the Sea to make reckless statements to the press and demand that the US government bail out Chicken of the Sea,” he added. “With a $50 million tax credit on the table, I believe Mr. Davet’s comments are out of line. I also believe his suggestion of layoffs show a lack of appreciation for the Samoan men and women who stand on their feet and clean fish for 8 hours a day while he collects his high-end salary from the comfort of his air-conditioned office.”