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SGMA summons errant member
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Posted on Jul 23 1999
The Saipan Garment Manufacturers Association has asked one of its members to appear for a formal hearing before the SGMA Code of Conduct Compliance Committee on August 9, 1999.
Informal conferences were held between the SGMA Compliance Committee and Micronesian Garment Manufacturing/Diorva in June to address prior wage violations and civil penalties imposed by the U.S. Department of Labor.
Although the back wages were paid to MGM/Diorva employees and civil penalties were addressed, SGMA stressed the need to ensure future compliance of its member company, by mutually agreeing with MGM/Diorva to the installation of independent payroll monitors.
Company officials also agreed to retain a private occupational safety consultative services.
According to an SGMA letter to the garment firm, MGM/Diorva did not implement any of the agreed upon initiatives and did not respond to SGMA as agreed upon as well.
SGMA has received citizens complaints from CNMI residents regarding MGM/Diorva’s compliance with environmental concerns. SGMA has found MGM/Diorva in violation of the SGMA Articles and By-Laws requirements for membership dues payments.
SGMA has informed MGM/Diorva to appear before its Compliance Committee within 14 days, as defined in its Rules Committee’s requirements, to answer why MGM/Diorva should not be suspended from the SGMA.
MGM/Diorva paid back wages to workers in February and April of last year, and again this year after an investigation in January. Civil penalties of $336,000.00 were assessed after the January investigation’s settlement.
The January investigation came as a result of information from within the industry, and as provided to both local and federal labor enforcement officials.
