SGMA gets high marks from independent audit firm

Most of Saipan’s garment factories have complied with strict standards implemented under a comprehensive code of conduct as part of the self-policing efforts to improve working conditions on the island, according to a report by an independent monitoring group.

The PricewaterhouseCoopers (PCW) auditing firm has rated high companies belonging to the Saipan Garment Manufacturers Association which have implemented a set of standards under its own Code of Conduct adopted in late 1998 consistent with the expectation of the world’s leading apparel brands.

In a news conference held at the Office of the Governor yesterday, SGMA officials welcomed the findings which were made by PCW after monitoring of 30 garment factories on the island between Dec. 2 to 12, 1999 to assess compliance with the Code.

Gov. Pedro P. Tenorio also hailed the report, saying that he is happy these actions are being taken in order to correct some of the deficiencies that occurred in the past.

“I hope that we will continue to do so,” he said. “I always encourage the company management to work with us to make sure the employee and the employer are protected.”

The governor at the same time called on other companies from other industries in the CNMI, like the construction sector, to follow SGMA’s initiative as he underscored the need to comply with both local and federal labor laws.

“We will continue to ask other companies to comply with both labor and federal laws so that our government and the federal government will continue to work closely,” added Mr. Tenorio.

The PCW report indicated compliance by SGMA-affiliated companies on six of the 10 standards put in place in the Code, that include forced labor, child labor, harassment or abuse, nondiscrimination, health and safety, freedom of association and collective bargaining, wages and benefits, overtime pay, worker dormitories/freedom movement and compliance principles.

The monitoring group, however, revealed some health and safety deficiencies and all companies had overtime in excess of the 60-hour per week standard set by Code, which SGMA Executive Director Richard A. Pierce attributed to the restriction on the number of workers they can hire.

“The results of the monitoring highlights some isolated issues at individual factories and a few more systematic issues at the facilities,” said PCW partner Randal Rankin in a statement.

“The SGMA and its members have made significant efforts, including training and education as well as monitoring to ensure conditions are improved to meet expectations,” he added.

Mr. Pierce said deficiencies reported will be addressed by the group through corrective measures that will be implemented as soon as possible.

“The excess overtime is all voluntary, no one is ever forced to work when they don’t want to,” he explained, noting that CNMI laws cap the number of workers for the garment industry at 15,373.

“The ceiling is self-imposed measure which is sensitive to any impact on the U.S. domestic market. At the same time, our buyers like the quality of our products and want more than Saipan’s factories can produce in a 60-hour workweek. Our Code will have to be amended and we will request consideration from our buyers,” added Mr. Pierce.

SGMA is scheduled to conduct a week-long health and safety conference this March where OSHA officials are expected to participate, according to the executive director.