Report on the Implementation of the derogation to ... - Trade Websites

Final <strong>Report</strong>
RoO Derogation under the PACP-IEPA
support tuna processing activities, as well as in businesses where cannery and support workers
spend their earnings. In 2010, over 16,000 indirect jobs were estimated to be generated by the tuna
processing sector. 64 In total, the sector accounted for around 22,800 jobs in PNG in 2010. For every
one metric tonne of raw material processed by PNG’s tuna canneries in 2010, a total of 91 jobs were
generated (i.e. 26 direct jobs and 65 indirect jobs).
From 2006-2009, the number of direct (and as a result, indirect) jobs increased steadily. However, in
2010, employment numbers declined by almost 1,000 workers, due largely to SSTC reducing from
two shifts per day to one shift per day, plus reductions in other plants due to production constraints.
Table 4.3 Estimated Employment Generation in PNG from Tuna Processing, 2006-2010
Number of Jobs 2006 2007 2008 2009 2010
TOTAL JOBS
Direct Jobs 6,419 7,279 7,322 7,456 6,534
Indirect Jobs 16,048 18,198 18,305 18,640 16,335
Total Jobs 22,467 25,477 25,627 26,096 22,869
TOTAL JOBS/MT
Production input (mt/day) 250 260 220 230 250
Direct Jobs/mt 26 28 33 32 26
Indirect Jobs/mt 64 70 83 81 65
Total Jobs/mt 90 98 116 113 91
Source: Consultants’ own analysis based on labour data provided by canneries, 2011
By 2016, as additional processing plants are established and commence operations, PNG’s tuna
processing sector could potentially provide 15,000 direct jobs and 38,000 indirect jobs (over 53,000
total) (Table 4.4).
64 The multiplier used for estimating indirect and induced employment is 2.5 and is consistent with the
multiplier used by NFA (which according to NFA personnel reflects the standard employment multiplier
adopted in PNG for analyzing employment impacts, taking into account local labour market dynamics). The
consultants have been unsuccessful in several attempts to independently verify the validity of this multiplier.
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