26 Feb 2008

Cannery considers shift from American Samoa over pay issue

4:14 pm on 26 February 2008

Star Kist Samoa in American Samoa says it's considering moving some of its local production elsewhere if the local minimum wage is increased again.

Star Kist General Manager, Brett Butler, revealed this before a hearing of the US House Subcommittee on Insular Affairs.

The hearing is looking at the impact of a federal law which would hike the minimum wage by 50 cents every year until it is on par with the federal minimum wage of US$7.25.

Mr Butler says the company is looking at its options.

"We are right now looking at a potentially moving some volume into Ecuador as a result of the 50 cent increase that is projected in May. So there is debate going on right now."

Star Kist General Manager, Brett Butler.

Meanwhile, Samoa Packing Human Resources Manager, Alfonso Pete Galeai, told the hearing that they are also revising their operations and would consider moving some of their production to canneries in Thailand.