Samoa Tuna Workers Get Pay Rise After 10 Yearsff

Congressman Faleomavaega announced today that in a letter dated January 29, 2008 he informed Governor Togiola that he has introduced H.R. 5154, a bill which would amend the Fair Minimum Wage Act of 2007 and condition further increases in minimum wage applicable to American Samoa.

In his letter Congressman Faleomavaega says:

“As a matter of record, I supported a one-time increase of fifty cents per hour for American Samoaís cannery workers and lowest-paid government employees making less than $5.15 per hour. I also opposed escalator clauses or automatic increases noting that automatic increases could be harmful to American Samoaís economy.”

“The DOL (Department of Labor) report concludes that neither Chicken of the Sea nor StarKist has reduced output or working hours in immediate response to the first fifty-cent increase in the minimum wage. Although both companies have stated they may do so in the future, I believe we can agree that our tuna cannery and lowest paid government workers deserved an immediate increase of fifty cents per hour after not getting an increase of any worth for the past ten years.”

”StarKist and Chicken of the Sea also reported to the DOL that the tuna market is now focused on sealed foil packages rather than traditional canned tuna.  If this is the case, it stands to reason that if StarKist and Chicken of the Sea were committed to us, they would be shifting production in American Samoa from cans to pouches so that we could grow with the industry. But, to my knowledge, neither cannery has implemented a large-scale plan that would change our operations.”

“I believe the reason for this is simple.  Pouched tuna is generally hand-packed meaning it is a labor-intensive process. Labor rates in American Samoa are $3.76 and more per hour.  In Thailand and South America, labor rates are sixty cents and less per hour.  In other words, if StarKist and Chicken of the Sea have told DOL the truth, if the tuna market is moving from cans to pouches, our canneries will not stay with us under any circumstances given these differences in wage rates.”

“I, for one, do not believe our canneries will stay a “minute” longer than they have to especially since they testified before our Special Industry Committees that their guiding economic principle is “to maximize the return they give to their investors or shareholders.”  Put another way, if the market is going to pouches and if pouches increase their profits, our canneries will go elsewhere, no matter whether or not the minimum wage is increased and no matter whether or not we extend 30A benefits.”

”According to the DOL, when our canneries go, their closure will have a ripple effect on our economy and could amount to a loss of 7,825 jobs. This is unacceptable and this is why I have introduced H.R. 5154, a bill which would amend the Fair Minimum Wage Act of 2007 and condition further increases in minimum wage applicable to American Samoa and CNMI on a determination by the Secretary of Labor that such increases will not have an adverse impact on either economy.”