While very supportive of the new cannery operator for American Samoa, some lawmakers are concerned that StarKist Samoa may not be getting the same benefits and treatment from the government compared with the new deals struck with Tri Marine International.
The concerns resulted in questions raised Wednesday during a House Government Operations Committee hearing to review the 30-year lease for Tri Marine’s Samoa Tuna Processor Inc., to operate the Atu’u facility formerly occupied by COS Samoa Packing, which closed on Sept. 30, 2009, costing more than 2,000 jobs.
Among the questions raised by the committee is one regarding the lease for Samoa Tuna Processors as compared to StarKist Samoa, to which the Governor’s Chief Legal Counsel Toetasi Tuiteleleapaga assured lawmakers that the government still has a keen interest in StarKist.
He said the leases between the two companies have both similar and different provisions. Tuiteleleapaga did inform lawmakers that one of the “main focuses†of getting this lease in place for Tri Marine was “to attract a new company to invest†and do business in American Samoa.
Rep. Pulele’iite L. Tufele said he, along with his colleagues, wanted to make sure that StarKist gets treated the same as the new company. Rep. Vaitoa Hans Langkilde said he concurs with Pulele’iite, and asked about the tax exemption certificate application for Starkist.
Tuiteleleapaga said it has not come through the governor’s office yet, and he does not foresee any major issues dealing with the StarKist tax exemption.
Gov. Togiola Tulafono told reporters earlier this month that the application had not yet come through his office. He said both sides were exchanging correspondence, and he hopes the tax exemption will be done very shortly.
Togiola gave assurance on his weekend radio program that the government will not ignore StarKist Samoa, saying that ASG will continue to work closely with StarKist Samoa, adding that what benefits one company should benefit the other. He said there are some issues to be resolved with StarKist — but he didn’t elaborate.
The Governor has been at odds with StarKist Inc. since the Pittsburgh based company announced in May layoffs of up to 800 workers at the StarKist Samoa plant — with the first layoffs going into effect on Aug. 28.
StarKist has been calling for the creation of an ASG-StarKist joint task force to look at ways of helping the cannery remain globally competitive. There have been calls from within the House for the government to work with StarKist.
During the House hearing Wednesday, Rep. Galu Satele Jr. told the witnesses that there are untrue reports circulating in the community that the Fono is “pro StarKist — but that’s not me†he said, adding “ I’m pro employment.â€
Satele said that the minimum wage issue has affected the tuna canning industry and there is now a two- year freeze on the next increase in the minimums. He asked if Tri Marine has made provisions to its operations to get workers the current rate as well as future hikes.
Daniel King, Tri Marine’s local attorney and Samoa Tuna Processors corporate secretary explained this is one of the reasons the company’s plans are not yet finalized. “The [wage] hike will definitely affect the plan,†said King.
“At the moment the plans are based on the $4.76 [per hour] and if there are continual 50 cent increases that… will factor into the business plan going forward,†said King. “I can’t tell you what result that will be, but they intend to still be here. It’s just the activity they are engaged in, which might be a bit different.â€
Current cannery minimum wage stands at $4.76 per hour.
At least three questions from the committee focused on the new company competing with StarKist, to which Tuiteleleapaga explained that the competition as referred to by lawmakers, is only in the area of tuna canning, “but not in the other facets of Tri Marine.â€
Tuiteleleapaga also said that Tri Marine is looking at “going ‘green’, or being environmentally friendly for its proposed facility — which is also different from StarKist. He did suggest that the best way to answer the question is get an opinion from a tuna expert.
King said the company’s long term plan includes “some frozen†and “some canned†tuna products but there is no specific type of product label yet. He also said the company’s plan is different not only in labor but in operation costs compared to Chicken of the Sea.
He said the minimum wage hikes can influence the cost of operation but company “management believes the plan will work in American Samoa.â€
King also informed lawmakers that Tri Marine is a major tuna supplier for canneries around the world and operates a fishing fleet with seven fishing vessels based in American Samoa.
During an interview with the CEO of Tri Marine in Honolulu, Hawaii, last week, Samoa News was told that working with StarKist is an important part of the company’s plan in American Samoa, as they are still looking at product labels.
Carlos Sanchez, the governor’s special advisor on fisheries, has also told Samoa News that StarKist remaining in the territory is a key ingredient to the local economy, with competition being his main emphasis.
“…competition brings better prices for my fish,†said Sanchez, who is the co-owner of several fishing vessels in American Samoa.
