27 Dec 2007

Study on economic impact of possible closure of American Samoa canneries completed

2:11 pm on 27 December 2007

A study in American Samoa on what would happen if the two canneries in the Territory move off shore or reduced their operations has been completed.

The Governor Togiola Tulafono says he has directed the Department of Commerce to submit a copy of the report to the US Department of Labor as soon as possible.

A major focus of the study was the impact of the federal minimum wage law which became effective in May.

The governor did not disclose the study's findings but he says its crucial that the results be sent to the US Department of Labor as soon as possible.

Under the federal minimum law the Labor Department is to study the impact of the initial wage hike and whether the economies of American Samoa and the CNMI can afford escalator increases.

However the governor says the entire study was conducted off island and the Labor Department only asked for information to be sent from the territory.

Governor Togiola says its imperative that this study's final results be included in the Department of Labor's report to Congress which will review whether escalator hikes will be implemented.