|
Star Kist Samoa reveals plans to offset wage bill
Tuesday,
April 29, 2008
Star Kist Samoa is taking measures to offset increased labor costs which began with the 50 cent hike in the local minimum wage last year and is set to continue with the next hike due May 25.
The cannery has announced that it is eliminating all discretionary overhead, wage and benefits and making charges in operations and manufacturing. All vacation and holiday pay for employees will be calculated at the 2006 wage rate, salary overtime policy will be revised and limited to lower job grades only, and all night transportation or bus subsidy for employees will be discontinued. Star Kist Samoa is also immediately shutting down one cold storage freezer, and is consolidating two pouch rooms into one.
A retort machine for pouch production is being shipped to Ecuador. The cannery says it will continue to evaluate staffing needs and efficiencies. Mary Sestric who handles corporate communications for Delmonte Seafoods says that these cost saving measures are intended to minimize disruption in cannery operations. The cannery is hopeful that the US Congress will act quickly and reverse the dangerous course of the territory’s economy. However, said Sestric should the current trajectory continue, they anticipate additional measures will be
necessary.
| 
