literally falling down around them. Others not immediately threatened are wondering when the axe will fall for them.

2. Industry must be more strongly discouraged from exporting American industry and American jobs, perhaps by means of the concepts set forth in the "National Employment Priorities Act."

3. Certain interests of the industry coincide with more broadbased concerns of the state and the nation. These would include improved transportation systems for Hawaii and increased vigilence in regard to the standards required for foreign pineapple imported into the U.S.

The major pineapple producers are cutting back on their production by a third. It's the pineapple grown for the canned and juice product that's being cut out. Production of fruit for fresh sale is going upthough there is no real chance, even in the future, of this picking up the acreage lost.

There are two broad problems created by this situation of special interest to this Subcommittee:

(a) The immediate problem of those who are definitely going to lose their jobs in the industry because of industry cut-back decisions that are irreversible. Molokai is the prime trouble spot here.

(b) The present danger of possible future unemployment should the industry decide upon further production cut-backs going beyond those presently planned.

It's necessary to place the problem of the industry labor force in the context of the broader problem facing the industry in Hawaii. It costs a great deal more to produce pineapple in Hawaii (taking into account direct costs of production, and indirect costs of producing in Hawaii (e.g. environmental standards)) than overseas. Of the three major companies left producing pineapple, only Maui Land and Pineapple forsees earning a reasonable rate of return on the Hawaiian investment. Dole and Del Monte both claim that earnings from their foreign production support their domestic operations, i.e. that it is the foreign operations that enable them to realize a reasonable return on their total investment in pineapple.

It is very profitable in any analysis of the industry problem and all its many facets to recognize that there are two classes of companies in the business.

1. Those producing both at home and abroad, and

2. Those producing only at home.

Going one step further, it is necessary to place the pineapple industry's problem in the context of the Hawaiian and national economy and ask what problems the economy faces as a result of the industry's attempts at making themselves economically viable (in their own terms), recognizing that this now includes cutting back production and its unemployment.

Finally, it is necessary to consider the role pineapple plays in shaping the lives of the Hawaiian people. What does pineapple add to the quality of life and what is being lost as it phases out production?

The above four categories of basic issues are, of course, all interrelated. A tunnel vision approach to anyone would be dangerous. Any viable program must balance all the issues, for example, solving the industry's problem of the labor force. One way of levelling production cost is increased mechanization in this labor intensive (up to 50 per

cent of the cost of a can) industry. Increased mechanization will possibly have a highly adverse effect on the volume of the labor forcefrom the point of view of the workers.

It was the particular purpose of the investigation carried out by this Subcommittee to determine the problem in order to help the pineapple industry labor force. Those who are now or will definitely be out of work in the immediate future because of company cut-back decisions made (and now being followed through with) are our immediate concern. How to help them and the communities of which they are a part is an issue independent of the state of the industry. The focus must be people, not the industry which is putting them out of work. However, in order to avert future crisis, it is necessary to prepare a program that will provide the best possible climate for the industry in keeping with the needs of the state of Hawaii. The Federal, state and local governments in a cooperative effort with labor unions and industry, need to commit substantial resources to the development or discovery of an operation or operations which will be economically viable and which will utilize the labor force to at least the same degree as the pineapple industry. However, dependence on a single industry approach to this economic crisis should be avoided.

In addition to the identification of alternate industries and crops, emphasis must be placed on increased manpower retraining for these alternative industries and crops, manpower retraining for the construction and the tourist industries and increased emphasis on improving the older workers' command of the English language.

APPENDIX NO. 1

CONGRESS OF THE UNITED STATES,

HOUSE OF REPRESENTATIVES, Washington, D.C., December 6, 1973.

Hon. WILLIAM D. FORD,

Chairman, Subcommittee on Agricultural Labor, Committee on Education and Labor, U.S. House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: My State of Hawaii is facing a very critical problem in the next few years. One of our major industries, pineapple, is phasing out all of its canning operations. All plantings on the island of Molokai have been stopped. Massive unemployment among agricultural workers is expected.

It is my view that your Committee should know about this problem, and accordingly I request an opportunity to present testimony to your Committee here in Washington, D.C., and urge you to conduct a field investigation in Hawaii at your earliest convenience.

Any assistance you can offer the people of Hawaii will be deeply appreciated. Very truly yours,

APPENDIX NO. 2

PATSY T. MINK, Member of Congress.

SURVEY OF MOLOKAI RESIDENTS CONDUCTED BY THE MOLOKAI

TASK FORCE

1.-AGE DISTRIBUTION OF ALL DOLE AND DEL MONTE EMPLOYEES AND THEIR FAMILY MEMBERS INCLUDED IN

II.-AGE SEX DISTRIBUTION OF DOLE-DEL MONTE EMPLOYEES AND THEIR FAMILY MEMBERS

III-AGE DISTRIBUTION BY EMPLOYER FOR THOSE DOLE-DEL MONTE FAMILY MEMBERS WHO ARE IN THE LABOR

DISTRIBUTION OF DOLE AND DEL MONTE EMPLOYEES AND FAMILIES (JOB AND INDUSTRY DATA)

NUMBER OF PERSONS WHO INDICATED INTEREST IN WORKING FOR VARIOUS TYPES OF

Percent

88

89

85

84

82

1 Percent of those who responded to the respective items. A person may have checked more than 1 category.

TOURISM COMMITTEE

[I. Do you feel that the tourist industry on Molokai will be helpful to the economy of the islands?]