PACIFIC BRIEFS American Samoa deliberates on minimum wage

American Samoa deliberates
on minimum wage

An industry committee currently reviewing American Samoa’s minimum wage is set to hold an executive session this week to decide whether it should increase present wage level.

The six-member panel of the 23rd Industry Committee convened last week to hear testimonies from various sectors, mostly from employers, according to the Pacific Islands Report.

Senator Moaaliitele Tuufuli, member of the committee, said verbal testimonies wrapped up Thursday and a decision will be presented very soon.

American Samoa is the only US jurisdiction whose minimum wage is determined per industry. The wage levels vary depending on the sector.

Congressman Faleomavaega has told the committee while he favored an increase in the $3.17 hourly wage of workers, he underscored the need to consider the present economic situation

“At the outset, I want to state that I continue to be frustrated with American Samoa’s lack of meaningful progress towards the goal of paying its people the same minimum wage which applies in the mainland U.S.,” the congressman said. “At the same time, the Department of Labor’s directive is that this Committee’s recommendations be made with `due regard to economic and competitive conditions, [and that they should] not substantially curtail employment.'”

He added that the committee should “ensure that what you recommend does not result in either a loss of jobs for our people or a loss of competitive advantage for our businesses.”

According to Faleomavaega, the key to better wages is to diversify the economy.

Starkist warns layoff
if wage is increased

Officials of StarKist in American Samoa has told the Industry Wage Committee that it may have to reduce its workforce if the committee pushed for higher wages.

Company officials told the committee that Starkist was able to stay in business because of lower labor costs, while other US plants have shut down due to tight competition, according to the Pacific Islands Report.

Despite shrinking market, Starkist has grown into one of the largest tuna canneries in the world, processing over 550 round tons of tuna per day, according to company representative Barry Mills.

They plan to introduce imported frozen loins into its operation, which will enable the plant to produce 625 round ton equivalents per day.

But the company said any wage hike will diminish its competitiveness and turn away its clients.