With the next federally mandated wage hike set to go into effect on Sept. 30 this year, Gov. Lolo Matalasi Moliga is again seeking all widespread support to convince the U.S. Congress to halt any future wage increases for American Samoa.

Lolo has asked the Legislature for a unified message through an approved Fono resolution to help convince Congress that American Samoa’s economy couldn’t support any future minimum wages hikes especially when the main industry, the canneries, are facing stiff global competition.

In his written State of the Territory Address, which is also the official annual Executive Branch report to the Fono, the governor sys the future of the two canneries is being threatened by significantly changed dynamics of the fishing industry.

He says this is precipitated by external actions and decisions perpetrated independently by outsiders such as the expansion of the National Marine Sanctuary, lapsing of the federal minimum wage moratorium in September of 2015, maximization of economic returns by Pacific Islands for the utilization of the Exclusive Economic Zones, treaties entered into by the United States with foreign countries undermining the interests of our the canneries, pressure brought to bear for marine resources conservation, and the monopolistic driven policies promoted by China to control the fishing industry.

“It will be very important for the Legislature... to weigh in and support the protection of our canneries’ competitive advantage by passing a resolution requesting Congress to continue the minimum wage moratorium and to secure a more acceptable method of determining our minimum wage, which recognizes the absorption capacity of our economy,” Lolo said.

The two canneries — StarKist Samoa and Tri Marine International’s Samoa Tuna Processors Inc. — are faced with stiff competition from low labor costs in countries in Asia, whose wages are below $1 per hour.

Current minimum wage for cannery workers is $4.76 per hour and the next 50-cent hike puts the minimum at $5.26. The canneries are the largest private employers in the territory while the American Samoa government is the largest employer for the territory with more than 5,000 workers with a current minimum wage of $4.41 per hour.

According to the governor, American Samoa has witnessed firsthand the devastating effect of federal minimum wage hikes with the closure of COS Samoa Packing on Sept. 30, 2009 resulting in the loss of more than 2000 jobs.

“We must find a way to convince Congress that the application of the federal minimum wage in American Samoa will effectively result in another recession and suffering,” he said.

He describes minimum wage hikes a “crucial issue” that has been articulated to the Interior Assistant Secretary Esther Kia’aina along with Congressman Aumua Amata asking them “to champion this serious issue for us.