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The Honolulu Advertiser
Posted on: Friday, August 8, 2008

Aid events set for Maui Pine laid-off

Advertiser Staff

The state Department of Labor and Industrial Relations will hold two events Monday to assist the 204 employees who have been laid off by Maui Land & Pineapple's Maui Pineapple Co.

The state's "rapid response team" will be available from 9 to 10:30 a.m. at the Lahaina Civic Center to help the affected employees.

Representatives from various state agencies will be on hand to explain unemployment benefits and other programs and services that are available.

Also, the labor department, Maui County's Office of Economic Development and the Maui Farm Bureau will hold a job fair for the displaced workers from 10:30 a.m. to 1 p.m. at the Civic Center.

For information, contact the labor department at 808-586-8844.

The layoffs are a part of the company's move to cut its pineapple production from about 2,000 acres to around 1,000 acres. ML&P said its strategy with downsized pineapple is to primarily serve local markets and a "handful" of Mainland accounts.

Reducing pineapple production is forecast to save ML&P $11 million in annual operating costs minus a one-time cost of $3 million for severance costs.

Operating losses in agriculture last year totaled $26.6 million for the company, up from a loss of $18.6 million a year earlier.

Real estate development and resort operations helped the company achieve a net profit of $8 million last year and $7.2 million in 2006.

During the first quarter of this year, ML&P reported a net loss of $740,000, largely driven by an agriculture operating loss of $5.6 million. Resort operations posted a $2.3 million operating loss, while real estate development had an operating profit of $8.2 million, which was down from $29.1 million a year earlier.