Maui News


February 25, 2009, 12:31 PM HST
* Updated February 26, 10:52 AM
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Maui Land & Pineapple Company yesterday announced a workforce reduction that will eliminate 100 jobs at its Kapalua Resort and corporate headquarters in Kahului. The company also instituted a 10% reduction in salary for all remaining employees. In an effort to minimize the number of staffing cuts, officials at Maui Land & Pine said they are also consolidating offices, eliminating all non-essential travel, cutting outside contractor support, trimming operating budgets, and placing some projects on hiatus. The cut backs are expected to save the company an estimated $7 million in annual operating expenses.

Maui Mayor Charmaine Tavares said she is saddened for the employees and their families, and will respond by joining the state to provide job training opportunities and other employment services for displaced workers. “As we look to the future, it is my hope that as the economy recovers, there would be opportunities for the people to return to work,” said Tavares.

“Like so many companies around the world, the unprecedented economic environment requires us to make very difficult choices,” said Warren H. Haruki, executive chairman of MLP.

“While we remain hopeful for an eventual economic turnaround, we must respond decisively to current conditions. With forecasts for fewer tourists, a tough real estate market, and tight financing for the next several years, we need to be prudent and move MLP to a more competitive cost structure. By doing so, we position MLP for future success when the economic situation improves.”

Officials say employees affected by the announcement will receive their full pay and benefits through March 1, 2009, after which they will receive a separation package based upon their years of service.


MLP also plans to provide employees with outplacement support to assist them in transitioning to another position. The company is working with management of the Kapalua Spa and Ritz-Carlton Club and Residences at Kapalua Bay and requesting that affected MLP employees be given priority consideration for approximately 150 new positions to be filled prior to their opening early this summer.


(Posted by Wendy OSHER © 2009)

“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.

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