Both companies have cited congress minimum wage as a barrier to doing business in american samoa. We cannot comment on the immediate effect this wage increase will have on our business, but minimum wage has historically had a negative impact on our overall operations. Chicken of the sea gets samoans a wage hike bloomberg. Tuna price per pound tuna price indices ratio of exvessel index to retail index figure 22. Minimum wage increases should be terminated immediately in. Construction on a new unloading dock was underway, in nov. Tuna cannery in american samoa to halt production the. The economy of american samoa is based on the distantwater tuna processing industry, support for the tuna boat fleets, and government transfers. Nov 02, 2015 starkist threatens to move ops away from american samoa due to rising wages, fishing rules. Imposed minimum wage hikes hurt economies in american samoa. Gop hits pelosis hypocrisy on wage bill washington times. How us minimum wage laws ruined american samoas economy. Tuna cannery productivity for selected years, 1995 2003.
Asg officials reiterated to samoa news over the weekend that the new fiscal year 2019 budget which begins today, oct. Apr 24, 2016 in american samoa, by 2009, after only three of the ten scheduled minimumwage increases, overall employment dropped 30 percent 58 percent in the critically important tunacanning industry. Tuna cannery in american samoa to halt production honolulu. Under current law, american samoas minimum wage is scheduled to rise by the end of september by 50 cents an hour. Documentary sample reel about plight of local tuna workers. Starkist tuna owns one of the two packing plants on american samoa.
Feb 15, 2020 an american samoa mandated minimum wage for its vast workforce thats three and four times the wage paid to cannery workers in other countries in the region like thailand. Starkist is the major employer in american samoa, employing 75% of the samoan workforce. Even before fmwa passage, for american samoas tuna canneries, the future. Minimum wage increases should be terminated immediately in american samoa, he added. I think the source for this information was this post and, perhaps, this wikipedia entry it appears that, as of this writing, theres no reference to pelosi in the latter. But in american samoa the tuna industry rules the roost. Selected american samoa industry minimum wage rates as a percentage of u. Comparison of wage and tariff costs for tuna canneries using alternate business models 83. Way back in 2016, i wrote a long post explaining how the fragile economy of american samoa had been crushed last decade by hikes in the us minimum wage. Wages in american samoa vary somewhat across different industries, but hover in. The company said economic difficulties spurred the decision. Pago pago, american samoa the samoa news, december 19, 2016 scheduled mandated minimum wage increases for american samoa will eventually affect wages of almost all tuna cannery workers in the territory, according to the us government accountability office report to the us congress. Enactment of public law 11028 last may not only raised the federal minimum wage rate in the 50 states, but, for the first time, the congress took direct action to increase the minimum wage rates in american samoa and cnmi by 50 cents per hour on july 24 and 25, 2007, respectively.
The american experience of a too high minimum wage. Pago pago harbor is an excellent deepwater port and, after more than 50 years of industrial activity, the territory has developed highlevel infrastructure telecommunications, electricity, water. The other tuna cannery was samoa packing, a chicken of the sea subsidiary, but it closed in 2009 due to american samoans being granted minimum wage. More layoffs in american samoa a result of congress. Starkist threatens to move ops away from american samoa.
Starkist threatens to move ops away from american samoa due to rising wages, fishing rules. May 01, 2015 starkist wants to continue the current freeze on the minimum wage in american samoa, where the usbased company operates a large cannery. Obama opposes raising minimum wage in american samoa due. May 14, 2009 the result was a big wage boost for residents of american samoa. Nancy pelosi and husband involved in some fishy business. This would make del monte products less expensive than their competitions. Starkist is the major employer in american samoa employing 75% of the samoan workforce. Mar 31, 2014 the most recent increase in american samoa occurred on may 25, 2009. Sea of obstacles imperil american samoas tuna industry pbs. Starkist wants to continue the current freeze on the minimum wage in american samoa, where the usbased company operates a large cannery. Highest american samoa minimum wage, adjusted for inflation in american samoa and the united states, 19972016 79 figure 16. The most recent increase in american samoa occurred on may 25, 2009. Impact of new minimum wage increase on starkist still to be.
Jan 12, 2007 one of the biggest opponents of the federal minimum wage in samoa is starkist tuna, which owns one of the two packing plants that together employ more than 5,000 samoans, or nearly 75 percent of. Facts and statistics about samoa samoa is a country located in the polynesia region with a population. How an illconceived minimum wage hike destroyed the samoan. For the past six years, congress has blocked scheduled minimum wage increases from taking effect in american samoa.
Thousands lose jobs due to higher federal minimum wage. This follows fellow tuna producer chicken of the seas decision to close its own cannery in september. The hourly wage for 17 industries in american samoa went up by. American samoa and the commonwealth of the northern mariana. Starkist tunas headquarters are in san francisco, pelosis. Under current law, the minimum wage in american samoas tuna canning industry will equal the current u. Congress oks american samoa minimum wage freeze fox news. The employers called the minimum wage the most important issue impacting businesses and cited american samoas reliance on the tuna canning industry and fears about the effect of further increases on the industry and the american samoa economy in general. The next is scheduled for september 30, 2015, with additional increases every 3 years thereafter. The story of how an illconceived minimum wage hike destroyed. Starkist wants minimum wage freeze in samoa cannery. In 2007, congress enacted legislation to increase the minimum wages incrementally in american samoa and the northern mariana islands until they matched the. Under the federal minimum wage law passed in 2007, workers in the tiny south. Tsunamis hit american samoas economic engine the san.
Starkist is owned by del monte foods and is a major contributor to pelosi. Tulafono proposed amending public law 11028 so that 1 the annual 50cent increases be amended to make them biennial and 2 any scheduled minimum wage increase be postponed for two years if the dol bureau of labor statistics determines that such an increase would substantially. The new 40cent per hour federally mandated minimum wage hike for all 17 different industry sectors in american samoa, went. Apr 05, 2010 the truth is the global tuna industry is so competitive that it is no longer possible for the federal government to demand mainland minimum wage rates for american samoa without causing the. In american samoa, by 2009, after only three of the ten scheduled minimumwage increases, overall employment dropped 30 percent 58 percent in. The truth is the global tuna industry is so competitive that it is no longer possible for the federal government to demand mainland minimum wage rates. Starkist threatens to move ops away from american samoa due. American samoa governor warns the local economy is in poor. Before the minimum wage hikes destroyed most of the canning jobs, lots of canned tuna were shipped from american samoa to the u. The territorys minimum wage at the time was set by industry. Documentary sample reel about plight of local tuna workers in american samoa by jeff deponte. More layoffs in american samoa a result of congress minimum wage. Starkist is the major employer in american samoa, employing 75 percent of the samoan work force. Though this was done with the intention of giving the countrys workers a raise this wage hike has ensured samoan workers arent getting work, period.
Washington yesterday, starkist tuna announced plans to layoff 600 to 800 employees at its cannery in american samoa. Pelosi bill blasted as pork for tuna new york post. The result was a big wage boost for residents of american samoa. There are 58 countries with a higher minimum wage then samoa, and samoa is in the top 29 percent of all countries based on the yearly minimum wage rate. Oct 08, 2015 for the past six years, congress has blocked scheduled minimum wage increases from taking effect in american samoa. The story of how an illconceived minimum wage hike. Scheduled minimum wage increases after january 2016. Jan 25, 2019 way back in 2016, i wrote a long post explaining how the fragile economy of american samoa had been crushed last decade by hikes in the us minimum wage. However, any new increase in the federal rate will. The territorys economy is entirely dependent on the government and the tuna canneries for jobs.
Sea of obstacles imperil american samoas tuna industry. Speaker of the house nancy pelosis home district includes san francisco. More layoffs in american samoa a result of congress minimum. Under current law, the minimum wage in american samoa s tuna canning industry will equal the current u. The lowest wage is for garment workers and the highest is for those in the shipping industry. Tsunamis hit american samoas economic engine the san diego. Strong opposition to minimum wage hike in american samoa. Impact of new minimum wage increase on starkist still to. Under current law, american samoa s minimum wage is scheduled to rise by the end of september by 50 cents an hour. An american samoa mandated minimum wage for its vast workforce thats three and four times the wage paid to cannery workers in other countries in the region like thailand. Michael saltsman, research fellow at the employment policies. American samoa does not have labor unions, and most employees are paid minimum wage. Attorneys lawyers in american samoa law offices in pago pago.
Dec 19, 2016 pago pago, american samoa the samoa news, december 19, 2016 scheduled mandated minimum wage increases for american samoa will eventually affect wages of almost all tuna cannery workers in the territory, according to the us government accountability office report to the us congress. Pelosi moves to close samoa wage loophole washington times. The united states congress increased the minimum wage for tuna canners in american samoa by 46 percent between june 2007 and june 2009, and have scheduled another increase later this year. It would not take much in these conservative assumptions for total employment losses in 20102011 to reach 10,00012,000 or roughly 50 to 60 percent declines in total employment in american samoa from 2008, tulafono said. Congress oks american samoa minimum wage freeze the san.
Unfortunately for american samoa, congress applied the 2007 federal minimum wage increase to the territory. Apr 01, 2014 the wage increases prompted the closure of the chicken of the sea tuna cannery in american samoa, the only cannery on the island competing with starkist. The fair minimum wage act of 2007 provided for annual 50. Impact of increased minimum wages on the economies of. When congress raised the minimum wage to its current level in 2007, it included gradual increases for u. Minimum wage law backfires in american samoa acton institute. American samoa, pelosis 17 million in del monte stock. New minimum wages for american samoa go into effect. The minimum wage and its employment impact realclearmarkets. Tuna cannery productivity for selected years, 1995 2005 figure 21. Minimum wage frozen for american samoa hawaii tribuneherald.
Isakson pushes american samoa wage hike in tuna tussle. American samoa economic report final may 11 2007 dol. In 2007, the first incremental wage increase took effect with no immediately measurable impact on the economy. Jan 14, 2018 the fmwa required annual increases of 50.
Imposed minimum wage hikes hurt economies in american. American samoa is reeling chicken of the sea closed its tuna cannery in the. An american samoa mandated minimum wage for its vast workforce thats three and four times the wage paid to cannery workers in other. Minimum wage requirements for american samoa 77 figure 15. And in 2016, we saw the end of tri marine internationals attempt to reinvigorate its samoa tuna processors plant, which is now closed, starkist continued. Samoan minimum wage rates are set by federal industry committees, which visit the island every two years. In addition, these employers said that federal tsunami recovery assistance had cushioned. Closure of samoa tuna processors came a year after the last 40cent per hour minimum wage hike was implemented on sept. In early 2007, the samoan economy was highlighted in the congress at the request of eni faleomavaega, the samoan delegate to the united states house of representatives, as it was not mentioned in. American samoa, pelosis 17 million in del monte stock, and.
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