6 May 2015

American Samoa warned over mininum wage hike

1:48 pm on 6 May 2015

American Samoa has been warned that wage increases could substantially reduce employment and affect the local tuna industry.

The senator, Galeai Tu'ufuli, told reporters he supports higher minimum wages in the territory and wants to hike them up to 7 US dollars and 50 cents per hour.

But the American Samoa Chamber of Commerce says it's not in favour of the move and questions the data used by Galeai.

The Chamber's Chairman, David Robinson, says it's hard to see how employers can afford such a hike in the current economic climate.

American Samoa's minimum wage has been set by federal law since 2007, but the 50-cent hike has been delayed over the last three years, with the next increase set for September the 30th.

Cannery, American Samoa

Cannery, American Samoa Photo: Supplied

Get the new RNZ app

for ad-free news and current affairs