Friday, May 15, 2009

If it can do this to Samoa...

...what is it doing to the US?

As President Obama considers whether to fulfill his campaign promise to raise the minimum wage from $7.25 to $9.50 per hour by 2011, there’s no better illustration of the consequences of well-intentioned policy-making than recent events in American Samoa, a United States territory in the South Pacific that falls within the purview of Congress.

Chicken of the Sea, the tuna company, announced this month that it will close its canning plant in American Samoa in September. The culprit is 2007 legislation in Washington that gradually increased the islands’ minimum wage until it reaches $7.25 an hour in July 2009, almost double the 2007 levels. ...

Chicken of the Sea will lay off 2,041 employees—12 percent of total employment, almost half of all cannery workers. And the 2,700 workers at StarKist, the other American Samoa tuna canning company and Chicken of the Sea’s rival, are probably concerned that their jobs are the next to go.

15 comments:

  1. Probably doesn't have anything to do with the giant global recession. You are aware of that, right? Not that there's any reason to think that a business would ever try to blame layoffs on government policy even if that wasn't entirely accurate. I mean, what incentive would they have to do that? If I'm Luke Froeb, apparently, I can't come up with a single one.

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