Court asked to force garment firms to release list of buyers • Lawyer says timing of court action is 'suspicious'
US Labor Secretary Herman Alexis has petitioned the federal court on Saipan to force two garment companies to identify their off-island buyers, saying this information is relevant to the federal labor department’s ongoing wage investigation.
Alexis filed last week the petition seeking enforcement of the administrative subpoena for Marianas Garment Manufacturing Inc., (MGM) and Marianas Fashion, Inc. requiring them to produce certain documents related to their business operations.
Attorney Michael Dotts, who represents the two garment companies, said the labor secretary’s court action was suspect as it was filed purportedly to coincide with the ongoing hearing of the federal takeover legislation in Washington D.C.
“The investigation started last March, and nothing has happened since then. Why did this suddenly crop up now? The timing is suspicious,” Dotts said.
The ongoing hearing at the US Congress is looking into uncontrolled immigration and alleged labor abuses in the CNMI.
The US Department of Labor’s wage and hour division is investigating the employment practices and labor conditions at MGM and Marianas Fashion.
“This is just a routine investigation. We did nothing wrong. We’re not aware of any complainants,” Dotts said.
In the petition filed in the US District Court, Alexis said the documents demanded by the labor investigators “are relevant and necessary to the determination of the [garment companies’] coverage under and compliance with provisions of the [Federal Labor Standard Act.]”
Alexis said the investigation is trying to determine if MGM and Marianas Fashion comply with FLSA, specifically the “hot goods provision” which prohibits the shipment of products “produced in violation of overtime (pay) requirements.”
Last April, the regional administrator of the wage and hour division issued a subpoena to the two garment firms requiring them to submit documents related to the volume of sales, amount of dollar volume of their business, identity of their off-island customers, value of goods shipped out of the CNMI, and the payroll of their workers.
“We have submitted the payroll records, but we don’t feel obligated to identify our buyers. Why do they have to know our buyers?” Dotts asked.
Dotts said the garment companies had refused to identify their off-island customers lest such information find their way to the national media.
“They have a habit of issuing press releases while a company is being investigated. But when the case is dismissed, you’ll never hear anything about it,” Dotts said.
If ordered by the federal judge to identify their off-island buyers, Dotts said he would ask for “some protection for our buyers.”
He said he would request the court to keep the labor department from sharing the names of the buyers once they are identified.
“We would request that no press releases would be issued until the investigation is concluded,” Dotts said. (MCM)
