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Sen Utu and Rep Jennings support ESOP study
Tuesday,
June 23, 2009
The chairmen of the Senate and House Economic Committees see merit in conducting a feasibility study on an idea first raised by Aumua Amata Coleman, the establishment of an Employee Stock Ownership plan or ESOP.
Senator Utu Abe Malae and Rep Alexander Jennings have written to Governor Togiola Tulafono urging that he seek a grant of $60,000 through the Department of Labor or Interior to conduct such a study.
The two have reviewed the proposal for such a feasibility study that was presented by Aumua Amata to the Lt, Governor, and Fono committees. They said they also interviewed former and current cannery management officials as well as a fishing boat owner with nearly forty years of fishing in the Pacific and discharging fish at the local canneries. They are all confident that our local force can operate and maintain a competitive tuna processing operation under the right conditions.
They also spoke with the Chief Executive of a successful ESOP in Hawaii whom they described as an exuberant advocate of ESOPs because of the noticeable culture of pride and motivation in employees who are truly concerned about the success of the company.
Senator Utu and Representative Jennings said we are faced with extreme urgency not only because September 30 is just 100 days away but also because COS is already removing some plant equipment to be sent overseas and our highly skilled workforce will begin to disperse soon. They added that the lower cost of purchasing the COS plant from Thai Union surely would be moiré than offset by additional start up costs in replacing equipment and workers. They said an ESOP feasibility study would answer many questions, concerns and skepticism that have been stated by many, including themselves.
Governor Togiola has said that the employee stock ownership proposal is not well thought out and does not consider where employees are able to get money to buy stock.
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