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SGMA: Keep cap on factories
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Posted on Feb 25 2000
As part of testimony given during Tuesday’s public hearing on the Omnibus Labor and Business Reform Act of 2000, the Saipan Garment Manufacturers Association said it opposes the lifting of a cap on the number of garment factories on the island.
Speaking before the House Committee on Trade and Tourism regarding HB 12-039, SGMA Executive Director Richard A. Pierce said his organization’s board of directors agreed with most of the bill, with the exception of lifting the garment license moratorium.
“We don’t want to be viewed as conspiring or assisting in anti-trust activity but we have not identified any of our factories that are interested in increasing our workforce or acquiring additional licenses at this time,” said Mr. Pierce.
“The SGMA board voted not to support the outright repeal of the cap for several reasons, including the fact that business is too slow because buyers are afraid to place orders from Saipan.”
Mr. Pierce explained that some factories are suffering because of the non-placement of orders and prices of goods have also dropped. The slowdown is the result of a billion dollar class action lawsuit filed against the CNMI’s garment industry in early 1999.
H.B. 12-039 seeks to repeal a number of anti-business laws that were enacted in the CNMI over the past few years in an attempt to appease the concerns of some federal lawmakers. However, the efforts have gone unnoticed by the Clinton Administration and the U.S. Senate, which recently passed a bill to takeover the CNMI’s immigration control.
“I for one believe that for too long we have put the protection of the relationship between the federal government and the CNMI ahead of the protection of both the Commonwealth’s Covenant and the very businesses that literally exist as a result of it,” said Mr. Pierce.
Committee Chairman Florencio Deleon Leon Guerrero agreed to accept additional SGMA testimony, language changes. and suggested amendments for the committee’s consideration before presenting HB 12-39 in its final form.
