Two of the largest privately owned companies in American Samoa say a mandated 50-cent US wage increase scheduled for May could see their businesses in trouble.
This comes as Star Kist and Samoa Packing issued their concerns at a hearing of the House Commerce Committee.
The tuna canneries companies warned that if the intended wage increase isn’t stopped they may be forced to reduce productivity or even relocate.
The companies are required under the Fair Minimum Wage Act of 2007 to increase people’s wages by 50-cents each year until local wages meet the federal rate of seven dollars 25.
The next scheduled wage hike will be the third since the introduction of the act.
Government officials are expected to voice their views on the matter this week.
