28 Sep 2010

American Samoa businesses brace for minimum wage hike

4:13 pm on 28 September 2010

The manager of a shipping service in American Samoa says the company's dreading the impact of another 50-cent federally mandated minimum wage hike that's due to take effect this week.

The general manager of Polynesian Shipping Services Limited, Herman Gebauer, says things aren't looking good at all economically, and everybody is feeling the pinch.

He says his workers are the highest paid hourly employees in the shipping and transportation industry, and will earn $6.09 an hour, if the wage hike comes into force on Thursday.

Herman Gebauer says the business has 11 staff, and says while he hasn't made cuts yet he's warned staff that the business will have to cut back.

"Tightening our belts. Reduce costs. I've been working on utilities, office expense. No overtime. Those kind of things. I talked to my workforce listen you will all have to tighten your belts as far as the business is concerned and you should do the same in your families. You gotta find ways to reduce costs and save money."

Herman Gebauer.