PAGO PAGO, American Samoa — StarKist Sea Food Inc., the parent company of StarKist Samoa, has announced a number of cuts at its cannery in Pago Pago, including the reduction of benefits and workers.

On the cutting block are: 20 salaried positions, hourly employee pension benefits, seven paid holidays, paid vacation for hourly employees and additional activities that benefit hourly employees.

The company, the largest private employer in this U.S. territory, said the cost-saving measures are needed to offset "dramatically escalating costs," primarily with the minimum wage increases.

The company said two minimum wage hikes in less than 18 months accounted for a more than a 30 percent increase in wage costs.

The hourly minimum wage for American Samoa's various industries rose by 50 cents in July. The minimum increased by another 50 cents in May and will rise again next May until it reaches the minimum wage generally applicable in the United States.

"Additional factors include the uncertain federal tax treatment of revenues generated through American Samoan operations, combined with competition from low-wage countries with significant excess manufacturing capacity, which are driving down global commodity tuna prices," the company said.

Philadelphia-based StarKist spokeswoman Mary Sestric said the 20 full-time salaried employees were told on Saturday about their positions being eliminated effective Jan. 1.

Sestric said all other employees are being informed in meetings throughout this week regarding other benefits being eliminated.

StarKist, which was recently acquired by the South Korean conglomerate Dongwon Enterprise Co. from Del Monte Food Inc. for $363 million, said it regretted the current economic environment in American Samoa, which compels the company to make budgetary changes that affect employees.

"As a member of the community since the 1960s, we value the dedication the American Samoan people have demonstrated to StarKist for decades, and we recognize that our success is in large part due to their hard work and commitment," the company said.

Dongwon intends to remain in operation in American Samoa, "but will continue to evaluate the economic viability of the company's operations in American Samoa."

StarKist Samoa has a work force of about 2,200 while its competitor, COS Samoa Packing, a subsidiary of San Diego-based Chicken of the Sea International, employs some 1,500 workers.