14 Oct 2010

Planned new cannery in American Samoa keeping eye on wage rises

8:16 pm on 14 October 2010

The lawyer for Tri Marine International, Dan King, says an increase in the minimum wage in American Samoa will definitely have on impact on its planned new tuna cannery.

Mr King had been questioned during a House of Representatives hearing on whether to extend a lease for Tri Marine's subsidiary, Samoa Tuna Processor Inc, which intends rebuilding the plant abandoned by Samoa Packing.

The federally mandated rises in the minimum wage have been put on hold but Mr King was asked how the company would react if Washington returned to its plan to lift the wage to the level on the mainland.

He says the plant's development is based on the current minimum wage of four dollars 76 US an hour.

"If there are continual 50 increases that will be factored into their business plans. I can't tell what the result of that will be but they do intend to still be here, it's just the activity they are engaged may be a bit different."

Dan King.

The legislators have agreed to grant the company a 30 year lease.