MINIMUM WAGE BARRIER
June 22, 2009 --- MINIMUM WAGE BARRIER
An open letter to Congressman Faleomavaega and the people of American Samoa:
Before the announcement by COS of their departure from the territory, I sent numerous letters to the editor about the impact of the minimum wage increases including the possible closure of the canneries.
Furthermore, about a year and a half ago, in a meeting of the Chamber of Commerce, I made comments in detail of how the canneries left California when the minimum wages reached $5.25 and how the same happened in Puerto Rico when their wages also reached $5.25. Now with the new world economy, the wage proximity to the $5.00 level did it here for American Samoa. During the last two months or so, a group of people have been working aggressively to try and attract investors that are and have been in this industry to come and fill the void after COSI leaves. What do we find?
The minimum wages barrier. Everyone is concerned that with the actual minimum wages along with the escalating clause attached to the labor laws and other factors such as the electricity rates (this factor can be solved locally), it is impossible to compete with the new generation of canneries located in Thailand, Indonesia, Vietnam and other low-labor cost countries.
The major stonewall that we find is the continuous insistence of Congressman Eni that the minimum wages is not the major factor of COS leaving; and he is the only one in the whole world that is knowledgeable of this industry that keeps assuring everyone that the minimum wages is the least factor which caused the departure of COS from American Samoa. I have been talking to people from Europe, Latin America and Asia about establishing themselves here in American Samoa, and it is a laughing matter in this industry every time Faleomavaega says that the increase of minimum wages is not the key factor for the departure of COS from American Samoa. Why aren’t there any fish cleaning/ canning facilities in New York which is better living than in Vietnam or in Indonesia? Because, the minimum wage is high there. Why don’t they have tuna cleaning fish facilities in Los Angeles or Las Vegas where there is a large labor pool available? Because the minimum wages are high. Why did these canneries come here in the first place? For many factors - the low wages was one of them. Why are they cleaning fish in Latin America, Majuro, Solomon Islands, Papua New Guinea, etc..? Is it for the high wages? Definitely NOT! It is unbelievable that Eni is still spinning in that subject.
As humans, we all make mistakes, and the Congressman made a big mistake when he said that corporate greed was the problem not the minimum wage. Well Congressman, now you know it – and I know that you know the truth. You made a mistake, recognize it, and fix it – instead of going around and blaming others for what is happening and making a fool of yourself assuring people what everybody knows is not the truth.
I am begging the canneries to recognize publicly what is already known in the industry about the impact of the minimum wage and its role on their decision to leave American Samoa.
To the canneries, you have been here for decades, you have helped and sustained American Samoa’s economy, and allowed all of us to have a good standard of living. We thank you! You have been part of this unique community, but at the same time, this has been a good business for you. Together, we can still solve this wage problem. It will be a disservice to condemn more than 70,000 people to suffer the consequences of a bad decision made by U.S. Congress without their knowledge of America Samoa’s unique situation and non-guidance by American Samoa’s Congressman that talks about corporate greed instead of emphasizing the contributions of the canneries to American Samoa, and what your departure will do to the economy of American Samoa. The Congressman’s greed of power penalized us. Please Starkist and Chicken of the Sea-Samoa Packing, help us by spelling out the truth.
Congressman, you did it, you fix it. This is the last opportunity you have, not to go into your retirement with the legacy of pushing the canneries out of American Samoa. Your hard-nose approach on defending a mistake you made, is impeding the efforts to convince the U.S. Congress to change or backof on a mistake that they made. We are asking you to come and join our team of pre-occupied business people to solve this problem and go to the Congress and back-up petitions of not only stopping the minimum wage increases but doing something to give the canneries special classification to stay here. People in American Samoa are waking up and more and more I hear “I don’t believe in this Congressman anymore” and they still have not felt the full impact of the departure of the canneries. If this happens, you won’t hear complaints, you will hear screams asking you “why did you do it?”.
You did it you fix it. We will help you. One of the canneries is still here, lets keep it and allow enough room for other people to come and take over the other cannery. Are you planning to live here after your tenure in Washington or are you planning to stay in the mainland US? If the plants leave, I hope that you will come here and suffer with us.
If you are really serious about cooperation, PLEASE call the Governor and our local leaders. The Governor has made great efforts and has a project with good possibilities, but it is much easier to achieve with your help in Congress. Talk is cheap – now it is time to act.
written by Carlos Sanchez-
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Talk is cheap for so many people that lived in American Samoa. The people of American Samoa knew how corruptive oour government and everyone that works in the government. My father ran so many times for Governor and Congress telling the people of American Samoa about the things that are happening in American Samoa. Yet, the people of American Samoa refuse to listen to what my father believe that he could make a change. Now look, the people that refuse to listen and believe the things that my father was talking about how so many families are suffering with how the government runs things in American Samoa. The people of American Samoa should stop complaining about things that they choose these people that are in office. Time and time again the people of America Samoa refuse to believe how corruptive these people are, but yet they are the main ones that are picking these people for office. The people that are complaining are the ones that voted for these people to be in office. So unless these people realize to stop putting these people in office that is destroying our island, then they should stop complaining and do something about it. These are all the main reason why the younger generation of American Samoa are joining the military and moving up to the mainland to seek a future in the United States. It is really sad to see the younger generation that has to do this because of all the corruption that are hurting there families in American Samoa.
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