Displaced Hawaiian Commercial and Sugar Co. workers on Maui, and those at businesses affected by the pending shutdown of the last sugar plantation in the state, will be eligible for $2,000 a month in federal income assistance once their state unemployment benefits run out.
The Hawaii employees were deemed eligible for those and other benefits after the U.S. International Trade Commission determined that HC&S was one of the companies seriously harmed by Mexico unfairly dumping subsidized sugar in the U.S.
Local politicians hailed the potential federal payments as a way to cushion the blow to Maui’s economy from the loss of more than 600 jobs.
“My concern was not just for the displaced HC&S employees, but for Maui’s economy as well,” said state Sen. Rosalyn Baker (D, West Maui-South Maui) on Monday. “Providing benefits to these workers and the businesses impacted by the plantation’s closure gives us greater optimism our island will get through this huge economic loss as painlessly as possible.”
The federal assistance includes cash support of $2,000 a month for up to 2-1/2 years for workers enrolled in training programs, payment for the training programs, payment of 72.5 percent of health insurance premiums, and a wage subsidy for workers over age 50 who find jobs that pay less than their previous position at HC&S.
It is the first time Hawaii workers displaced by foreign trade have qualified for these funds, said U.S. Sen. Brian Schatz.
“This has not happened in the past with other (Hawaii) sugar closures because we couldn’t make the case that they closed directly as the result of trade policy,” Schatz said during a teleconference with reporters. “Here we have a case of HC&S being hurt by sugar dumping.”
The federal money, which will provide additional support for HC&S workers on top of already existing state benefits, will start once the workers have exhausted their 26 weeks of state unemployment benefits. Hawaii’s maximum weekly unemployment benefit was $551 last year.
“These federal dollars will give former HC&S workers the resources to support their families and find new jobs,” Schatz said in a statement.
In January, Alexander & Baldwin Inc. announced it will phase out sugar cane farming at its HC&S subsidiary over the next 12 months after losing $30 million in 2015. A&B has laid off 85 of its 675 workers so far and plans to eliminate 30 to 40 every month leading up to the last harvest at the end of the year. Most of the layoffs and severance will happen in December.
A&B has said about 30 HC&S employees will be retrained after the last harvest to maintain infrastructure and continue operating East Maui Irrigation Co.
Schatz said the U.S. Department of Labor determined that HC&S’ workers are eligible for Trade Adjustment Assistance. The TAA program provides benefits to eligible workers who lost their jobs due to the adverse effects of foreign trade. The U.S. ruled last year that Mexico was unfairly subsidizing sugar production so the commodity could be sold for more than 40 percent below the cost of production.
The TAA money is also potentially available for non-HC&S workers who are employed by companies servicing the sugar industry, such as truckers and suppliers, Schatz said in the teleconference.
“I thank Sen. Schatz and (U.S. Labor) Secretary (Thomas) Perez for their efforts to identify funding that will help the sugar workers on Maui,” Gov. David Ige said in a statement. “The end of sugar is the end of an era, and by working together we can pave a path to the future.”
State senators from Maui released statements hailing the announcement.
“Federal assistance through the Trade Adjustment Assistance program is something I discussed with Sen. Schatz shortly after the closure was announced,” said Sen. Gilbert Keith-Agaran (D, Waihee-Wailuku-Kahului). “He said he would work on it, and I’m glad he kept his word. In order to help those workers who want to remain on island, we will continue to look for ways to directly help Maui residents who are getting laid off.”
Sen. J. Kalani English (D, East Maui-Upcountry-Molokai-Lanai) said the displaced workers having extra help to support their families on top of what the state provides is “great news,” adding, “We plan to continue to work on pending legislation that will provide additional state benefits to HC&S workers.”
Ige said in the teleconference that the state’s rapid-response teams have been on Maui providing assistance.
“We have been working with A&B, HC&S and the ILWU (International Longshore and Warehouse Union) to see how we can coordinate the support and provide the best support to the families,” Ige said.
