Employees of the American Samoa Power Authority were informed at a staff meeting last week that the authority is planning to lay off employees early next year.
Executive Director of the American Samoa Power Authority Utu Abe Malae said in response to questions from KHJ News, *Yes, we are planning to cut about $150,000 per month from payroll, goods and services. *
He said, “ASPA has accumulated too much accounts payable over the years.
*Even after we catch up and become current paying our bills, we will still be short $150,000 per month.*
Utu, who took over ASPA in 2013 after a few years as head of the CNMI utility company said, “12 years ago, the number of employees was under 300. In 2012 it was close to 500 and now it it is about 440. Yet the sales to the canneries were higher in the past than now.”
Two years ago ASPA offered a severance package to employees in an effort to reduce staff.
Utu said this did not result in sufficient savings even though the number of employees decreased.
The ASPA layoffs are planned for February 2017.
Asked what needs to happen to avoid a layoff, Utu listed:
- both canneries have to operate at full bore;
- new industrial and large commercial customers needed;
- the new ASPA plant at Satala needs to be operating because it is more efficient than the temporary one there;
- ASPA needs to catch up on all reimbursements from the federal government;
- improve the efficiency of ASPA’s workforce, especially those in accounting and grants administration.*
