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The Honolulu Advertiser
Posted on: Wednesday, February 25, 2009

MLP lays off another 98 workers, cuts pay

By Rick Daysog
Advertiser Staff Writer

Maui Land & Pineapple Co. announced a new round of downsizing, laying off nearly 100 employees at its Kapalua Resort and corporate headquarters.

The Kahului-based MLP also implemented a 10 percent pay cut for its remaining 695 staffers. The moves are expected to save $7 million in annual operating expenses.

"Like so many companies around the world, the unprecedented economic environment requires us to make very difficult choices," said Warren Haruki, MLP's executive chairman.

"While we remain hopeful for an eventual economic turnaround, we must respond decisively to current conditions."

The layoffs, which represent about 12.5 percent of the company's total workforce, are the second in about six months by MLP. In July, the company laid off 274 workers, or about 26 percent of its payroll, due to mounting losses from its pineapple operations.

In January, senior managers and workers in Maui Land & Pineapple's agricultural division took a similar 10 percent pay cut.

Shares of MLP rose 13 cents to close at $8.62 on the New York Stock Exchange yesterday.

The company said the latest cuts involve 85 workers at its Kapalua Resort, or nearly 20 percent of the company's resort staff. MLP also laid off 13 people in its corporate office.

To minimize the number of job losses, MLP said it recently closed and consolidated several offices, eliminated nonessential travel and reduced outside contractor work.

MLP said affected workers will receive full pay and benefits through March 1 and will be eligible for severance based on years of service.

The company said it plans to provide outplacement services and is working with the management of the Kapalua Spa and Ritz-Carlton Club and Residences at Kapalua Bay for priority consideration for future hirings.

The opening of the resort this summer will create 150 new jobs.

Founded in 1969 by kama'aina businessman Colin Cameron, Maui Land & Pineapple is one of the largest private employers on the Valley Isle. For the first nine months last year, the company reported a net loss of $8.8 million.

"We are hopeful that a good number of our affected employees will be able to find employment at this outstanding new property at Kapalua," said Haruki.

Maui County Mayor Charmaine Tavares said government assistance would be made available to those who lost their jobs.

"I am saddened for the employees and their families. We will respond as we have in the past by joining with the state to provide job training opportunities and other employment services for these displaced workers."

Reach Rick Daysog at rdaysog@honoluluadvertiser.com.