MGM/Diorva resigns from SGMA
Micronesian Garment Manufacturing, Inc. (MGM) and Diorva Saipan Limited resigned on Friday from the Saipan Garment Manufacturers Association, charging the group of “insensitivity ” and jeopardizing its operations after SGMA’s executive director released a press statement alleging non-compliance by the company.
Yuk Lan Lee, general manager of MGM/Diorva, warned of legal actions against SGMA if it continues to issue “press releases or publication of defamatory remarks” by the organization against its former member.
“Your actions leave us no choice, but to terminate our membership with SGMA, effective (last Friday),” he said in his letter to Executive Director Richard A. Pierce.
“After all, what company or individual in their right mind would want to be voluntarily associated with an organization that is going out of their way to try to damage them, which is what the effect of the press release could very well do,” added Lee.
The reaction was in response to the press statement released by Pierce that appeared last Friday in the news media, accusing MGM/Diorva of failure to implement provisions of earlier agreement with the group’s Compliance Committee.
SGMA had also asked the company to appear for a formal hearing before its Code of Conduct Compliance Committee on August 9 to answer these allegations, including failure to install independent payroll monitors and hire a private occupational safety consultative services.
Lee, however, maintained his factory has instituted reforms on its operations and that the civil penalties imposed by the U.S. Department of Labor are still under appeal.
“(T)hose penalties were for back payment of wages, which were paid immediately after the matter arose and with the utmost cooperation of Diorva and MGM,” Lee explained. “The swift payment and cooperation were acknowledged by SGMA.”
He also said they did not receive any written notice from Pierce regarding its plan to conduct a formal hearing nor the allegations stated in the press release — a move he claimed is “counterproductive.”
Lee added that the action “leaves much to be desired (and)… the SGMA press release shows a substantial insensitivity to the class action litigation against us, not to mention the detrimental effect it may have on our relations with our customers.”
There is no immediate comment from SGMA regarding the resignation of one its members. Pierce is off-island and could not be reached for his reaction.
According to the Pierce’s press release, MGM/Diorva has failed to implement any of the agreed upon initiatives that were worked out last month between the company and SGMA Compliance Committee to address prior wage violations and the civil penalties.
Pierce also said that SGMA has received citizens complaints from CNMI residents against MGM/Diorva’s non-compliance with environmental concerns, while the group has also cited the company in violation of its articles and by-laws requirements for membership dues payments.
