7 Mar 2011

Chicken of the Sea says payments to pension fund end obligation to American Samoa workers

11:11 am on 7 March 2011

The tuna canning company, Chicken of the Sea International says a payment into the pension fund will end its obligations to workers at a closed plant in American Samoa.

The cannery closed down in 2009 laying off more than 2,000 workers.

The U.S. Pension Benefit Guarantee Corporation announced last month that agreement reached with the canning company would result in US$3.7 million being paid into the retirement fund over the next three years.

The payment exceeds the company's required plan contribution.

The agreement provoked questions from former employees, and Chicken of the Sea responded over the weekend saying the agreement does not enhance the pension benefits to individual qualified employees.

It says at the time of the shutdown in 2009 all active employees were notified of their potential benefit under the pension plan.