Tuna cannery in American Samoa to halt production
ASSOCIATED PRESS
Construction on a new unloading dock was underway, in Nov. 2014, at Tri Marine International’s Samoa Tuna Processors Inc., plant in the U.S. territory of American Samoa. In a statement today, Tri Marine said it will end production indefinitely at its Samoa Tuna Processors cannery plant.
PAGO PAGO, American Samoa » One of the two tuna canning companies operating in American Samoa announced today it plans to suspend production in December.
In a statement, Bellevue, Washington-based Tri Marine says it will end production indefinitely at its Samoa Tuna Processors cannery plant.
The company, the largest employer in American Samoa, told its 800 employees of the plan today. The company didn’t specify how many will be affected.
American Samoa does not have labor unions, and most employees are paid minimum wage. The company said economic difficulties spurred the decision.
“The challenging economics of canning tuna in American Samoa combined with external factors facing STP make Tri Marine?s private-label focused business model for operating the plant economically unsustainable,” the company said in a statement. The company is considering alternatives for the plant, including an outright sale. The company pumped $70 million into the plant before it opened in January 2015.
“This is an incredibly difficult decision and one we make with a great deal of reluctance,” said Tri Marine Chief Executive Officer Renato Curto in a statement. “Our hearts go out to STP’s employees, suppliers, service providers and everyone else who depends on STP’s operations.”
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In 2014, Tri Marine’s cannery plant was expected to employ some 1,500 workers at their seaside plant in the village of Atu’u. American Samoa’s economy is dependent on the tuna cannery industry.
“We are $70 million confident of our investment in the cannery project,” Tri Marine Chief Executive Officer Renato Curto said in 2014.
“Ultimately, our decision to invest came down to our belief that tuna is a good, nutritious product, that tuna stocks can be sustainably managed for the long-term and that processing in the islands is the right thing to do,” he said.
When the plant opened, outgoing chamber of commerce chairman Lewis Wolman said that besides the large workforce, the cannery would have direct impacts like buying products from local vendors and supporting the shipping industry. But it would also have significant indirect impacts, such as the purchases made by workers from their paychecks.
In addition to the cannery, Tri Marine’s Samoa Tuna Processor Inc., was able to receive fish directly from the fishing boats.
“Though we are suspending canning operations, Tri Marine will continue to operate STP as a logistics hub for the Tri Marine Group. Unfortunately, this will mean a much reduced labor force,” Curto said today.
“Due to a complex series of factors, including a long history of poorly thought out and misguided government policies, we find ourselves at a crossroads,” American Samoa delegate to the U.S. House of Representative Aumua Amata Radewagen said in a statement today.
“It was my top priority during my first term in Congress to begin reversing those policies, and I will continue that mission in the hopes that the island’s remaining cannery can prosper,” she said.
Curto said the company has invested well over $200 million in American Samoa between its fleet and facilities.
SunKist also operates a tuna cannery in American Samoa, but the plant has been temporarily out of operation for the past week because of a lack of fish.
30 responses to “Tuna cannery in American Samoa to halt production”
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Ha…now I know why Hawaiian was weighing it’s PPG passengers. No more tuna, no more cargo coming to HNL. Now you have to balance the plane out in the passenger compartment. Now it is going to be a loose money flight unless you put a smaller plane on that route.
They were weighing their passenger because Samoan come in huge huger hugest.
Not funny! You want to face some of them in a football game?
Canned tuna from Samoa does not come via air freight. It all comes via ship as bulk cargo.
This is the results of the U.S. minimum wage being forced on U.S. territories where the cost of living was a fraction of what it was in the U.S. The governors of American Samoa and the Northern Marianas argued against it saying it would ruin their economies, but our Congress, led by Senators Inouye and Akaka, knew what was best for the territories and ignored the pleas from the governors. The Northern Marianas which once had a thriving clothing manufacturing industry has it no more and American Samoa’s tuna industry, its main economic engine, is about to become history. So what happened to all the people who were very happy earning $3 or $4 an hour and living quite well before the minimum wage was forced on the territories? Most are now out of work and on U.S. government welfare.
Now we can welcome more pacific islanders as they will come to our shores looking for economic opportunities since they will have none in Samoa. Our homeless numbers will increase!
true
Horrible future for us!
I think Abercrombie was part of the misguided sham also.
Didn’t the honorable former Speaker of the House of Representatives, Nancy Pelosi make millions investing in there canneries? Anyone know?
You are aware of Mrs. Pelosis’ role in wages, right? Here’s a sampling:
Pelosi’s Tuna Surprise
Updated Jan. 16, 2007 12:01 a.m. ET
Economists of every political stripe agree that a higher minimum wage will cost some low-skill workers their jobs. But don’t believe us; just ask Democratic Speaker Nancy Pelosi.
The House last week whooped through an increase in the minimum wage to $7.25, by a vote of 315-116. But, lo, included as part of this boon to the working man was a loophole: The new, higher wage floor applied to all of these United States and its territories — save for the Pacific outpost of American Samoa. In the immortal words of Congressman Patrick McHenry (R., N.C.), “There’s something fishy going on here.
But the Dems “care about people”, right?
Guess that means corn beef is the main dish.
No more canned wahoo. That was so tasty but better for the fish to not have the entire PILE netted and processed.
‘American Samoa’s economy is dependent on the tuna cannery industry.’ Good luck boys. The tuna stocks are decimated and tuna will soon be exterminated . The oceans are a free for all – and all harvest as much as they can catch. Human irresponsibility at work.
Starkist not Sunkist.
Sell the plant to the workers for $1.00 and see what happens?
They move to Honolulu! and become our wards!
It would get dismantled and sold for scrap metal.
Instead of the “spin” that Tri-Marine presents, isn’t the bottom line that there is not enough tuna caught to make canning sustainable in A.Samoa? Same situation in Alaska where the once abundant salmon catches now are at a point where salmon canneries are having problems. Prized fish for eating/canning are rapidly being thinned out.
Sounds like it. Sounds more like a business model problem more than anything else.
Lack of fish? What has over-regulation by Obama’s Administration taken more food out of people’s mouths?
He has NO clue to what he does. It is only going to get worst when she gets in, Sad for Americaa.
Build one in Hawaii, Hilo would be perfect.
Have to solve the problem of dwindling fish stock first.
Cannery will shut down as soon as the workers unionize.
Is that some kine joke ? The cost of operating a business here in the Islands would have us paying 20 bucks a can for Tuna. Not to mention, the Unions wanting their cut.
minimum wage in samoa: $5.99.
minimum wage in philippines: $0.67
minimum wage in thailand: $0.66
tuna canneries are in the philippines and thailand. where would you build and operate a cannery?
You Can Tune a Piano, but You Can’t Tuna Fish.
Speedwagon Rules ! !
Lack of fish means poor aqua management. The fish stocks worldwide are being excessively harvested. When they are gone wages will be irrelevant.