SGMA, PROC officials tackle employment issues

Officials of the Saipan Garment Manufacturers Association (SGMA) met recently with visiting representatives of the China International Contractors Association (CHINCA) and the People’s Republic of China Ministry of Foreign Trade and Economic Cooperation (MOFTEC) to discuss issues relating to Chinese garment workers and their employers.

Members of CHINCA’s Labor Coordination Committee oversee the operations of the local Chinese Economic Development Association (CEDA) office in Saipan. CEDA was established in 1986 after the local government entered into a Memorandum of Understanding with China’s Ministry of Foreign Trade and Economic Cooperation.

The United States State Department granted authorization to the joint effort to allow the limited-scope CEDA office to be established in Saipan. The office administers to Chinese nationals that work in the garment, construction and tourism industries.

CHINCA’s Vice Chairman Diao Chunhe and Deputy Secretary Yuan Zaiqing, as well as MOFTEC’s Deputy Director Tan Shufu met with SGMA acting chair Richard A. Pierce to discuss labor issues last Friday.

Mr. Pierce emphasized SGMA’s concerns about past problems with overseas recruitment firms, and requested the support of CHINCA and the local CEDA office.

“We have had recruiting companies which have charged recruiting fees that are beyond our control. These fees are in question in the proposed settlement agreements in the current class action lawsuit against a number of Saipan’s garment manufacturers,” said Mr. Pierce. “If the fees, which are set by regulation, exceed any agreement amount, then our SGMA members become, again, unfairly and unknowingly subject to cause of action. We asked CHINCA to work with their regional recruiting firms to make sure they do not exceed government control standards and put our SGMA membership at risk unintentionally.”

Mr. Pierce also reported to the officials that some recruiters have been allegedly charging excessive sums for passport renewal services for workers who renew their local approved work contracts.

“This is unfair to the worker that comes to Saipan with the intention of working hard and earning a lifetime’s income for their families when they go back home,” according to Mr. Pierce.
SGMA and Chinese officials pledged to continue to address mutual concerns.

CHINCA is a nationwide trade organization, which works with its membership of companies and enterprises as a bridge between government and trade. CHINCA is a member of the International Chamber of Commerce.