14 May 2010

American Samoa cannery makes job cuts

8:53 am on 14 May 2010

The US-based Starkist Company has confirmed that between 600 and 800 people will be laid off from its Star Kist samoa cannery in American Samoa.

The positions will be cut over the next six months and will reduce the company's territorial employment from a high of more than 3,000 in 2008 to less than 1,200 workers.

StarKist says they have exhausted every possibility to reduce costs to remain competitive, and increasing global pressures will require further workforce reductions.

Our correspondent Monica Miller says Starkist boss, Don Binotto says the decision has not been made lightly or without lengthy consideration of every option.

"So its going to be another big blow for American Samoa. Chief executive Don Binotto says they have been forced to do this because they can't remain competitive against their competitors in low wage countries."

Monica Miller