StarKist
makes cutbacks in operations to counter minimum wage increases
by Fili Sagapolutele
Samoa News Correspondent
Del Monte Food
Inc., owner of the StarKist Seafood Inc., has confirmed that
initial measures have been taken to address federal minimum wage
increases impacting StarKist Samoa operations in American Samoa.
"In light
of mandated federal wage escalation that began last summer -
currently expected to continue forward on May 25 of this year
- combined with increasing other costs, StarKist announced a
number of measures to improve the economic foundation of American
Samoan operations," said Del Monte spokesperson Mary Sestric
in response to Samoa News inquiries.
Sestric said
the following initial measures have been taken to eliminate all
discretionary overhead, wage, and benefits as well as changes
in operations and manufacturing:
· One
cold storage freezer will be immediately shut down.
· Consolidation
of two pouch rooms into one to accommodate the removal of one
four-cart wheel retort machine to be crated and shipped to Ecuador
(in South America).
· All
vacation and holiday pay will be calculated at the 2006 wage
rate.
· Salary
overtime policy will be revised and limited to lower job grades
only.
· Ongoing
evaluation of staffing needs and efficiencies.
· Elimination
of all night transportation/bus subsidy.
"In implementing
these cost controlling measures, our goal is to minimize disruption
in hope that the Congress will act quickly and reverse the dangerous
course of the island's economy," she said via e-mail from
San Francisco. "However, should the current trajectory continue,
we anticipate additional measures will become necessary."
Sestric did not
reply to questions there has been a reduction in workforce following
the first hike last July or any plan to reduce workforce if the
next hike is not delayed or halted.
Meanwhile, both
the Senate and the House have endorsed a concurrent resolution
requesting U.S. Sen. Edward Kennedy and Rep. George Miller to
"apply their efforts" in order "to suspend imposition"
of the next wage hike for American Samoa.
Miller and Kennedy
chair the respective U.S. Senate and House committees that have
jurisdiction over the minimum wage issue.
The resolution
provides that the suspension should be in place pending a study
and review of relevant data on the economic impact of the increases
on the territory.
The resolution
supports a bill sponsored by Congressman Faleomavaega Eni that
calls for further increases to be based on the determination
by the Labor Secretary in consultation with the Secretary of
Interior and the governments of American Samoa and CNMI.
The resolution
was to have been forwarded to Gov. Togiola Tulafono late yesterday
so that the governor can include his letter of support calling
for a wage hike suspension. Once all the documents are in place,
the resolution and accompanying documents will be transmitted
to Miller and Kennedy, Senate President Lolo M. Moliga said yesterday.
Lolo said the
only thing left now is to wait and see what action Congress will
take on the minimum wage issue.
"While it
looks like the next wage increases will go ahead as scheduled
I'm still hopeful something will change to our benefit,"
said Lolo.
He noted that
the Fono has provided all necessary documentation and resolution
supporting the delay in the wage hike but the final decision
rests with Congress.
However, Sen.
Tuaolo M. Fruean said American Samoa including the Fono has not
provided solid answers and data to "convince" Miller
and Kennedy to delay or halt the wage hikes. He said that American
Samoa continues to say that the hikes are not affordable for
our community but no solid data has been provided to Congress.
"Are we
prepared to deal with the next minimum wage hike and how about
the high costs of living because of the wage and fuel costs?,"
Tuaolo asked.
Lolo said that
the truth is, American Samoa is not prepared to absorb the new
wage hikes.
Reach the
reporter at
fili@samoanews.com.
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all rights.
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