31 July 2007
American Samoa The American Samoa Chamber of Commerce is worried about the impact new federal hourly minimum wage rates will have on two tuna canneries, the largest private employers in this U.S. territory.
David Robinson, the chamber’s president, said any major layoffs would cause problems for the local economy. Businesses that depend on the canneries would also suffer, he said.
The hourly minimum wage for American Samoa’s various industries rose by 50 cents Tuesday, with cannery workers getting $3.76. The minimum for the cannery workers and employees in other industries will continue to increase by 50 cents every May until it reaches the minimum wage generally applicable in the United States.
The hourly federal minimum wage for the 50 states rose to $5.85 Tuesday, and will increase to $6.55 in July 2008 and $7.25 in July 2009.
Faced with the prospect of paying a higher minimum wage, one of the canneries, COS Samoa Packing, said two weeks ago that it was exploring adjustments to its scheduling, such as reducing the number of work days per week from five to four.
If that option were taken, Jim Davet, COS Samoa Packing’s senior vice president of operations, said the company would modestly increase hourly wages for employees whose salaries are above the minimum wage to help offset some of the impact of lost work hours. â€Such a change may be in the best interests of all employees, the island economy and Samoa Packing,†Davet said.
It could allow the company to maintain a high level of employment, instead of the previously anticipated layoff of 200 workers, while keeping labor expenses level, he said.
In March, Del Monte, which owns the other cannery, StarKist Samoa, announced it was expanding its pouch production, adding 300 new jobs. “Due to the minimum wage increase, our pouch project remains on hold,†said Mary Sestric, a Del Monte spokeswoman in San Francisco.
As for the individual members of the Chamber of Commerce, Robinson said nearly all have indicated they didn’t have a problem with the first 50-cent hike.
â€Most of the companies are paying more than the minimum wages in their respective industries,†Robinson said. “It’s the escalating additional 50 cents that worries chamber members.â€
American Samoa is located about 2,300 miles south of Hawaii.
