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MGM fined nearly $1 million
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Posted on Apr 29 1999
The Micronesian Garment Manufacturing Inc. has been fined some $986,661 in back wages by the US Department of Labor for violating overtime laws.
The amount represented payment for 336 workers who were not paid after performing overtime work.
This is the second time that MGM/Diorva Saipan Limited has been fined by the US Labor Department in one year’s time.
The Saipan Garment Manufacturing Association has adopted a Code of Conduct for all members in view of its desire to continue doing business in the CNMI. In recent months, two members were suspended for violating the new code. When they rectified specific violations, their membership was reinstated by the association.
In February and April of last year, the department recovered a total of $560,000 in back wages for 427 workers. As a result of the latest missed payrolls, the department again fined MGM an additional $336,000 in civil penalties for repeated and willful violations of the Fair Labor Standards Act though the company has appealed the fine.
“These employees worked long hours for as many as 12 weeiks without pay”, said Alexis M. Herman, secretary of labor. “The fact that this company has been forced to pay back wages twice in one year shows its disregard for the law and disrespect for its workers”.
