Concorde pays out $.9M

Concorde Garment Manufacturing Inc. distributed nearly a million dollars to 800 of its workers as reimbursement for their recruitment fees, according to the Department of Labor yesterday.

Labor Director Robert Norita Magofna also disclosed yesterday that they opened a compliance agency case against Concorde, which is a standard procedure whenever a business establishment closes down.

Magofna told Saipan Tribune that Concorde prepared 806 checks worth $910,068.40 that were distributed by the management, with the assistance of Labor and police, to the workers Tuesday at the Garapan Central Park.

Magofna said that, of the 806 checks, six were unclaimed.

He said the workers received an average of $1,000.

With respect to the compliance case, the director explained that it was filed to make sure that all wages to the workers are paid and other issues are resolved.

A Labor official said Concorde’s shutdown of the factory Tuesday night was lawful because they received information that some workers had damaged property.
[B] Bank transactions[/B]

Yesterday morning, at least 500 garment workers who received their recruitment fee refund trooped to the Bank of Hawaii in Puerto Rico.

John Sheather, the bank’s senior vice president and CNMI district manager, said majority of the Concorde employees have accounts with them.

Sheather said over 800 workers either deposited or cashed the checks or did both.

The manager said there is absolutely nothing to worry about the huge number of workers conducting bank transactions.

“What we have done is set up two service areas,” he said, adding that everything went smoothly.

Sheather said there were no withdrawals or cancellation of accounts from among the workers who belonged to Concorde.

The company, which is one of the oldest and biggest garment firms on the island, closed down its operations as of Tuesday night.

“They cashed their checks. Some made deposits. We’ve not seen accounts’ closure,” said Sheather in an interview.

He said the bank had anticipated the event so “everything went smoothly.”

“We prepared for something like this to happen. We’re ready to assist them. We also got assistance from the Concorde team. Everything went smoothly,” said Sheather.

He said the bank had readied adequate cash reserves and added more staff to attend to the workers, who started lining up at the bank at about 9am, or an hour earlier than its opening.

He said the Saipan office had alerted its office in Guam about the situation. This means that Guam can easily send cash to Saipan in case of emergency.

A team from Concorde management had set up its own counter at the bank lobby to help in the processing of checks.

“It’s a pre-checking counter. They go there first before going to the counter,” said the manager.

Sheather attributed the orderly and successful day with workers to “good and strong communications.”

“We have communicated with them. We had interpreters available from Concorde to assist us,” he said.

The bank offered the workers some cookies while at the bank.

As of 2pm, the bank had serviced some 500 workers.

Sheather said the bank would remain open beyond 3pm, its closing time, if needed.

“We’ll stay open if we have to. But it looks like they’re almost done for the day. Maybe tomorrow, we’ll have some more,” he said.

Only the eligible workers, those who have been on island for three years and below, received the recruitment fee refunds.
[B] Early closure[/B]

Concorde said the factory’s closure this week was deemed necessary due to security concerns.

Pixley said he discussed the permanent shutdown of the factory with the Department of Labor formally yesterday morning.

“We’re working with them. We’re complying with all applicable laws. We discussed various issues like transfer of workers if they find jobs,” he said.

He said Concorde also agreed to make the dormitories available for the workers until Feb. 6, the original date of the factory’s closure.

“We had an intent of keeping the doors open and operating. We had customers back in the states anticipating orders but the workers walked out and chose to take the matter to the streets. We have no choice but to secure the facility. We are concerned about the theft, vandalisms, we are concerned about the safety of the workers and the safety of the community. With all disruptions in the community, we saw that the best thing to do is to shut down this time,” said Pixley.

Concorde was making orders for major apparel brands such as Polo, Liz Claiborne, and Dillards.

As for the workers, Pixley said it is their choice whether to be repatriated or avail of the 45-day period allowed them under the law to transfer to another employer.

“They can voluntarily leave, and we encourage that, or they can stay and look for a new employer within the period given them under the law, which is 45 days,” he said. [B][I](Liberty Dones)
[/I][/B]