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Sreenivasan

THERE'S A PITCHED BATTLE UNDER WAY IN AMERICAN SAMOA, AN ISLAND TERRITORY OF THE UNITED STATES 2,500 MILES SOUTHWEST OF HAWAII. THE FIGHT IS ONE FOR ECONOMIC SURVIVAL, WITH A PERFECT STORM OF LOOMING CHALLENGES THREATENING THE VIABILITY OF THE TERRITORY'S ONE ESSENTIAL INDUSTRY. NEWSHOUR WEEKEND SPECIAL CORRESPONDENT MIKE TAIBBI TRAVELED TO THE FRONT LINES TO BRING US THIS REPORT, WHICH WAS SUPPORTED BY A GRANT FROM PACIFIC ISLANDERS OF COMMUNICATION. >>

Reporter

MORNING PRAYERS AT THE START OF THE OLD CANNERY'S 6:00 A.M. SHIFT.

CHARLIE TUNA'S CANNERY

STARKIST. SOME 2,400 WORKERS TROOP TO THIS 56-YEAR-OLD OPERATION EVERY DAY. "LET US CELEBRATE," THEY SING IN UNISON. "BLESS OUR WORKERS," IMPLORES A SUPERVISOR, ADDING, "AS WELL AS OUR LEADERS AND MANAGEMENT." THOSE LEADERS OF AN ICONIC AMERICAN BRAND SERVE A COMPANY THAT'S NOW OWNED AND MANAGED BY A SOUTH KOREAN CONGLOMERATE, DONGWON. INSIDE THE CANNERY, TRAYS ARE LOADED WITH SEVERAL TYPES OF THAWED, COOKED, COOLED, AND READY TO PROCESS TUNA. >> SKIPJACK, BIGEYE, YELLOWFIN AND ALBACORE. >>

Reporter

THE TRAYS ARE THEN ROLLED TO THE STANDS, WHERE MOST OF STARKIST'S EMPLOYEES, EXPLAINS GOVERNMENT RELATIONS MANAGER ARCHIE SOLIAI, DO THE HARDEST HANDS-ON WORK. >> 70% OF THAT WORKFORCE IS CLEANING THE FISH. WE'RE SKINNING, TAKING OUT THE BONES. >> ONCE CLEANED, IT'S MEASURED BY HAND INTO POUCHES, A PACKAGING OPTION GAINING CONSUMER POPULARITY; OR BY AUTOMATION INTO CANS, THE OLD STANDBY. >> WE PROCESS CLOSE TO TWO MILLION CANS PER DAY. CANS, INDIVIDUAL CANS. >> PLUS, TONS AND TONS OF FISHMEAL, OIL AND OTHER BY-PRODUCTS USED IN AGRICULTURE, MEDICINE AND NUTRITIONAL SUPPLEMENTS. IT'S AN OUTPUT THAT'S KEPT STARKIST AT THE TOP OF THE CONSUMER TUNA PYRAMID FOR MOST OF THE COMPANY'S EXISTENCE, AND THAT, FROM THE EARLY '60s, MADE CHARLIE TUNA ONE OF THE ADVERTISING INDUSTRY'S ENDURING ICONS. >> WHATCHA DOING WITH IT, CHARLIE? >> SENDING IT TO STARKIST SO THEY'LL NOTICE WHAT GOOD TASTE I GOT! >> BUT TODAY, STARKIST'S DOMINANCE, AS WELL AS ITS VERY EXISTENCE IN AMERICAN SAMOA, IS NOT JUST AT RISK, IT'S AT THE CLIFF'S EDGE. THE MAIN PROBLEMS? A DECLINING MARKET GENERALLY FOR PROCESSED TUNA PRODUCTS, DOWN 40% IN THE THREE DECADES ENDING IN 2017; AN AMERICAN SAMOA- MANDATED MINIMUM WAGE FOR ITS VAST WORKFORCE THAT'S THREE AND FOUR TIMES THE WAGE PAID TO CANNERY WORKERS IN OTHER COUNTRIES IN THE REGION LIKE THAILAND; A $100 MILLION FINE LEVIED AGAINST STARKIST LAST SEPTEMBER AFTER THE COMPANY ADMITTED ITS ROLE IN A PRICE-FIXING CONSPIRACY, WITH POTENTIALLY CRIPPLING CONSUMER LAWSUITS STILL PENDING; AND FINALLY, AN INCREASINGLY BITTER DISPUTE OVER WHICH BOATS GET TO FISH WHICH WATERS. CONSIDER THESE LOCALLY-BASED LONGLINE BOATS, BOATS OVER 100 FEET LONG, THAT SPOOL OUT MILES OF LINE AND THOUSANDS OF HOOKS IN A SINGLE SET, OFTEN RETURNING WITH MORE THAN 30 TONS OF PRIZED ALBACORE TUNA. THEY'VE FISHED THIS WAY FOR DECADES. CARLOS SANCHEZ IS A VETERAN LONGLINER, BUT HE'S IN THE PROCESS OF GIVING IT UP. >> ALL MY BOATS ARE FOR SALE. I HAVE SEVEN BOATS, AND THEY ARE FOR SALE. >> YOU HAVE NO HOPE FOR THE INDUSTRY? FOR THE-- FOR THE-- >> WE HAVE NO HELP FOR THE INDUSTRY. >> IN 2002, THE U.S. FEDERAL AGENCY NATIONAL MARINE FISHERIES SERVICE BANNED LARGE- VESSEL LONGLINERS LIKE SANCHEZ'S BOAT, AS WELL AS EVEN BIGGER BOATS CALLED PURSE SEINERS, FROM FISHING WITHIN 50 MILES OF AMERICAN SAMOA. THOSE CLOSE-IN WATERS WERE RESERVED TO PROTECT A HANDFUL OF LOCAL SMALL-BOAT FISHERMEN, CALLED ALIA FISHERMEN, FROM COMPETITION FROM LARGER BOATS. THE ALIAS REPRESENT THE TRADITIONAL SUBSISTENCE FISHING THAT'S NOURISHED THESE ISLANDS FOR CENTURIES. >> BEHIND THIS IS A RIDGE HERE. IT'S ANOTHER GOOD FISHING GROUND. >> ALIAS LIKE MA'ATULIMANU SAUSI MAEA, MOSTLY A CHARTER AND SPORT FISHERMAN. >> ONCE YOU ALLOW THE BIGGER VESSELS TO-- TO-- TO ENTER THE 50-MILE ZONE THAT'S-- THAT'S NATIVE TO THE LOCAL, TRADITIONAL ALIAS, THEN-- THEN WE WILL BE OUT OF FISH. BARELY I CAN CATCH. SOMETIMES I GO OUT, I DON'T-- I DON'T CATCH NOTHING. >> "NONSENSE," INSIST LONGLINERS LIKE VINCE HALECK AND RASELA FELICIANO. THE ALIAS HARDLY NEED A 50-MILE LIMIT. >> THE ALIAS DON'T GO OUT THAT FAR. THEY CAN'T GO OUT THAT FAR. I MEAN, THEY CAN BARELY GO OUT THREE MILES, YOU KNOW, AND THEN COME BACK. AND SO, THERE'S THIS-- THERE'S THIS WATER THAT CAN BE ACCESSIBLE TO US, TO-- TO HELP US, BUT WE CAN'T HAVE ACCESS TO IT. >> WE ARE AMERICAN SAMOANS. WE'RE NOT FOREIGNERS. YOU IMAGINE HOW IT FEELS LIKE TO BE AN OUTCAST IN YOUR OWN HOME. YOU KNOW, IT'S-- IT'S-- IT'S A TERRIBLE FEELING. >> FEELINGS ON ALL SIDES HAVE BEEN HURT AND HAVE HARDENED INTO LAWSUITS. >> YOU'RE RIGHT. THERE'S A WAR GOING ON. >> THE TERRITORY'S DIRECTOR OF MARINE LIFE RESOURCES, HENRY SESEPASARA, TOLD US THE COURTS WILL HAVE TO PICK THE WINNER-- THE ALIA INTERESTS HE SUPPORTS, OR THE BIG LONGLINERS THAT HE SAYS ARE INTERESTED ONLY IN PROFITS AT THE EXPENSE OF ANY TRADITIONAL INTERESTS. >> WE COULD COME OUT TO-- TO SOME COMPROMISE, BUT THEY DON'T WANT THAT. THEY DON'T WANT NOTHING TO DO WITH-- WITH US ANYMORE. >> AND THERE ARE OTHER RESTRICTIONS, OTHER SOVEREIGN NATION'S RULES AND HEFTY FEES DETERMINING WHO CAN FISH WHERE. IT ALL MEANS THE FISHABLE WATERS FOR AMERICAN SAMOA-BASED BOATS ARE FEWER IN NUMBER AND FURTHER AWAY. THAT FAVORS THE BIGGEST BOATS WITH THE GREATEST FISHING RANGE AND THE BIGGEST STORAGE HOLDS FOR THE SUPPLY OF TUNA THAT STARKIST NEEDS. THE VAST MAJORITY OF THE FISH PROCESSED AT THIS CANNERY ARE BROUGHT IN BY PURSE SEINERS, WHICH, AS THE NAME IMPLIES, IS A VESSEL THAT DROPS A HUGE PURSE, OR NET, INTO THE WATER, AND, IN THE COURSE OF A SINGLE FISHING TRIP, CAN BRING IN AS MUCH AS 1,500 TONS OF TUNA. BUT WILL STARKIST CONTINUE TO RELY ON THE BIG PURSE SEINERS THAT SUPPLY 80% OF THE FISH THE COMPANY PROCESSES HERE? THE RICHEST FLEETS OF THESE LARGER BOATS ARE EXPLORING LESS EXPENSIVE CANNERIES ELSEWHERE, ESPECIALLY THE BOATS FROM ONE COUNTRY. >> THE CHINESE FISHING FLEET HAS GROWN FROM 80 BOATS ABOUT TEN YEARS AGO TO ABOUT 550. >> THAT'S NOT COMPETITION, THAT'S ANNIHILATION. I MEAN... >> YEAH, IT'S WIDELY KNOWN THAT THEY SUBSIDIZE THEIR FLEETS. THEIR INDUSTRIES ARE HEAVILY SUBSIDIZED. AND THE FURTHER OUT THEY FISH, THE MORE UNECONOMICAL IT IS FOR THEM TO BRING THE FISH BACK. >> FOR NOW, THESE LOCAL LONGLINERS, HOPING FOR A MIRACLE THEY CAN'T ENVISION, STEAM FURTHER OUT THAN THEY WANT TO, OFTEN GOING WITHOUT INSURANCE OR REPAIRS THEY CAN'T AFFORD JUST TO CUT THE FISHING-TRIP COSTS THEY SAY ARE CRIPPLING THEM. EACH TRIP TAKES A MONTH OR MORE. >> $50,000. >> JUST TO LEAVE PORT? >> JUST TO LEAVE PORT. $50,000 IS $30,000 IN FUEL, $5,000 IN FOOD, OIL... >> WHAT IS YOUR MAINTENANCE COST? >> THAT-- THAT, EVERY YEAR, COSTS ME $100,000. >> PER BOAT? >> PER BOAT. >> THEY ALL SAY THEIR END OF THE FISHERY, THAT'S LONG SUSTAINED THEM AND THEIR FAMILIES, IS IN FREEFALL. >> I HAVE LOST MORE THAN A HALF-MILLION DOLLARS, AND I CANNOT CONTINUE LIKE THAT. >> AND WHILE THESE LONGLINERS SAY IT CAN'T GO ON LIKE THIS AND WON'T, STARKIST HAS MADE CLEAR THAT ITS CHOICES

ARE LIMITED

CUT THE WORKFORCE WAY, WAY DOWN; SHUT DOWN THIS OPERATION FOR GOOD AND RELOCATE TO A COUNTRY WITH CHEAPER LABOR COSTS LIKE THAILAND; OR DECLARE BANKRUPTCY. WITH EACH OPTION, THE LONGLINERS LOSE. >> SORRY, CHARLIE. >>

Reporter

AS WE STAND HERE TODAY, NONE OF YOU KNOW WHETHER OR NOT THERE'S GOING TO BE AN ANNOUNCEMENT IN THE NEXT WEEK, THE NEXT MONTH, THE NEXT SIX MONTHS FROM STARKIST, SAYING, "WE'RE OUT OF HERE." >> NO, WE DON'T KNOW. >> WE DON'T. >> WE DON'T KNOW. >> RIGHT, WE DON'T KNOW WHEN, BUT WE KNOW IT WILL HAPPEN. >> YOU'VE ALREADY, IN YOUR OWN MIND, CONCLUDED THAT THAT'S THE WAY IT'S GOING TO GO? >> YES, THAT'S THE WAY IT'S GOING TO GO. >> AND IF STARKIST SHUTS DOWN HERE OR GOES UNDER ALTOGETHER, WELL, HERE'S WHERE ALL SIDES IN THE CANNERY'S FIGHT

TO SURVIVE AGREE

DISASTER FOR AMERICAN SAMOA. THAT'S BECAUSE THROUGH ALL ITS HISTORY HERE, STARKIST HAS BEEN AN EMPLOYMENT MULTIPLIER. FOR JUST ABOUT EVERY JOB HERE, THERE'S A JOB IN AN OUTSIDE BUSINESS OR COMPANY THAT SUPPLIES OR DEPENDS UPON THE CANNERY. >> WITH AN ISLAND OF 55,000 PEOPLE, WE'RE TALKING ABOUT 4,500 JOBS. >>

Reporter

LOSING ALL THOSE JOBS WOULD BE DEVASTATING ENOUGH, BUT THE MACRO-VIEW IS EVEN MORE GRIM. THE ONLY WAY TO KEEP SHIPPING COSTS AND FUEL AND ELECTRICITY PRICES DOWN FOR AN ISLAND WHERE EVERYTHING COMES IN BY CONTAINER IS TO HAVE A DEPENDABLE SUPPLY OF SOME PRODUCT TO SHIP OUT. >> THE CANNERY IS ABLE TO PROVIDE RETURN CARGO FOR THOSE FREIGHT VESSELS THAT COME IN. THE FREIGHT RATE IS STILL HIGH COMPARED-- WHEN YOU COMPARE IT TO THE U.S. LEVEL, BUT, YOU KNOW, IT'S STILL MODEST IF YOU LOOK AT IT, YOU KNOW, IN-- IN THE REGION. AND IF THE STARKIST VOLUME GOES AWAY, ESTIMATES ARE, YOU KNOW, THAT THOSE NUMBERS WILL INCREASE ABOUT 40%. >> LONGLINE FISHERMEN WE SPOKE TO SAY THAT THEY'RE AFRAID THEY'RE GOING TO WAKE UP ONE MORNING AND THE DECISION WILL HAVE BEEN MADE, "THAT'S IT," THAT THERE'S NO WAY FOR THEM TO FIGHT. THEY'RE RIGHT, AREN'T THEY? IT COULD HAPPEN THAT-- THAT SUDDENLY? >> IT'S HIGHLY POSSIBLE, YEAH. >> WHERE DO YOU GUYS STAND ON ALL THOSE OPTIONS THAT ARE OUT THERE? >> MIKE, I THINK THAT'S ABOVE MY PAY GRADE. BUT WHAT I CAN SAY IS, YOU KNOW, THE COMPANY'S LOOKING AT, YOU KNOW, ALL OPTIONS. I THINK IT'S FAIR TO SAY THAT, YOU KNOW, THIS-- IT COMES DOWN TO A BUSINESS DECISION. >> AND, BECAUSE STARKIST IS THE BIGGEST PRIVATE EMPLOYER IN AMERICAN SAMOA, THAT WILL BE A BUSINESS DECISION THAT'S FELT ACROSS THE ENTIRE REGION.