Tsunamis hit American Samoa's economic engine

       The tsunami that killed nearly 200 people in the Samoas also dealt a vicious blow to the already sputtering engine of the American Samoa economy: tuna canneries.
       The US territory has long been home to Chicken of the Sea and Starkist plants that make more than half the canned tuna consumed in the United States.
       Even before three-metre waves roared ashore on Sept 29, the territory had been bracing for the closure of the Chicken of the Sea facility, which meant nearly 2,000 people would lose their jobs. Because of the tsunamis, the end effectively came a day earlier than scheduled.
       Chicken of the Sea is owned by SETlisted Thai Union Frozen Plc (TUF),Thailand's biggest seafood exporter. TUF decided to shift operations from the Pacific island to a new $20-million plant that opened last week in the US state of Georgia.
       Meanwhile, the cannery run by StarKist Co lost power in the tsunami and isn't expected to return to full production for another month or so.
       The canneries directly and indirectly make up about 80% of all economic activity in American Samoa, which has a population of 65,000 people about a five-hour plane ride from Hawaii.
       "It's like we've been hit by an earthquake, a tsunami, and a cyclone all at once," said Governor Togiola Tulafono,who added that the shutdowns would ripple through the economy as newly unemployed and idle workers won't have as much money to spend."When the cannery shuts down, a whole lot of other things shut down. We need to get that company back up and working," he said.
       The industry was in trouble even before the disaster because of a 2007 US federal law mandating that the same minimum wage laws that apply to the 50 states be enforced in the Pacific territory. The law is gradually lifting the minimum wage for American Samoa by 50 cents a year until it reaches $7.25 (245 baht) an hour - the same standard as the rest of the country.
       The law has increased labour costs for the canneries by more than 30%,even as they compete with canneries in Thailand and Vietnam where the hourly wage is less than $1.
       Cannery workers in the territory now earn an average of $5.11 an hour.
       StarKist laid off about 350 hourly and salaried workers but it has chosen to stay in Samoa and lobby for a new bill now before Congress that would provide US fishing fleets with incentives to sell their fish in American Samoa. The bill would also pay subsidies to processors,like StarKist, in the US territory.
       "It allows American Samoa to be globally competitive again," said Don Binotto, president of StarKist Co."If that is passed, frankly, we see American Samoa as a place where we can continue to do business in the long term."
       The two plants sit right next to each other in long, white rectangular buildings along a narrow waterfront in Pago Pago Harbor's small industrial zone.
       The tsunamis largely spared both plants even though they destroyed dozens of buildings across the harbour.They did, however, drown the power plant that feeds electricity to StarKist,knocking the plant out of service.
       To cope, StarKist is shipping 10 generators to Pago Pago from Los Angeles that will supply the plant with electricity until the local power plant is rebuilt.The plant should be fully operational by the sixth or seventh week after the tsunami, said Mr Binotto.
       In the meantime, StarKist is storing 4,000 tonnes, or $13 million worth of tuna, in freezers run on generators.
       The tsunami has meant a double disaster for StarKist employees like Fuauli Atisano'e. The tsunamis wrecked the 38-year-old's home, as well as his parents'home next door, in the small coastal village of Tula. Their concrete walls are standing, but their floors are caked with silt and their windows are blown out.
       A waterlogged coconut, metal mattress frame and sewing machine are strewn around one of their rooms.
       "See that car inside the trees," Atisano'e said,"that's my car."
       The father of three hasn't heard yet when he'll be returning to work.
       The governor last month proposed that the territorial government buy Chicken of the Sea's COS Samoa Packing plant to keep it open. A committee of territorial lawmakers was due to hold a hearing on the measure the day the tsunami hit, but had to postpone their deliberations because of the disaster.
       Chicken of the Sea says it plans to use Samoa Packing as a cold-storage facility for fish caught in the Pacific.
       On a recent morning, maintenance workers dismantling the tuna packing and sealing machines were among the few remaining employees on site. They were preparing the equipment for shipment to the new plant in Lyons, Georgia.
       "We're still working for two or three more weeks," said Fotu Matola, a 38-yearold father of three."But after that, we're looking for another job [to] to earn some money for the kids and family."