Radio New Zealand - Te Reo Irirangi o Aotearoa

Wage rises delayed but American Samoa cannery still worried

Posted at 19:21 on 30 December, 2009 UTC

StarKist, the owner of the remaining tuna cannery in American Samoa, says it remains concerned at the escalator clause in the federally mandated minimum wage increases.

The company spokesperson, Mary Sestric, says the prescribed minimum wage increases are one of several factors combining to make American Samoa globally uncompetitive for the tuna industry.

She says the company wants a permanent solution which will not only benefit StarKist, but the territory’s economy as a whole.

The federal Government earlier this month postponed the next 50 cent per hour wage hike from May to Sept. 30, 2010 and the increases will then occur every September thereafter.

The delay provides an opportunity for the U.S. Congress to receive and review the wage impact study currently conducted by the Government Accountability Office.