July 11, 2025

SGMA responds to latest settlements

The recent announcement that eight more U.S. clothing retailers have agreed to settle claims against them in a federal class action lawsuit alleging sweatshop conditions in the garment industry in the Northern Marianas has done little at all in actually determining whether these allegations have a basis in truth, according to the Saipan industry's executive director, Richard A. Pierce.

The recent announcement that eight more U.S. clothing retailers have agreed to settle claims against them in a federal class action lawsuit alleging sweatshop conditions in the garment industry in the Northern Marianas has done little at all in actually determining whether these allegations have a basis in truth, according to the Saipan industry’s executive director, Richard A. Pierce.

“We know exactly why these eight other retailers have decided to settle for miniscule amounts of cash, and they’ve made it clear in no uncertain terms that it just makes economic sense to get out now, as opposed to the costs of litigation over an aggravated time frame,” Mr. Pierce said.

“I doubt there’s an attorney in the legal departments for the settling retailers and buyers that haven’t used the expression ‘extortion’ in their settlement negotiations with the plundering and notorious class action law firm of Milberg & Weiss,” Mr. Pierce explained.

He added that “It’s such a lousy modern American story. Look at the cast of characters ring out the cheers at the recent settlement announcement. UNITE, Global Exchange, Sweatshop Watch, the Asian Law Caucus, Verite and the bottom feeders, Milberg & Weiss. There is something seriously wrong with a system which would allow these strong-arm tactics to take precedent over reality. A reality that these factories and some major retailers refuse to be intimidated by.”

Mr. Pierce took exception with Milberg’s attorney Al Meyerhoff who expressed hope that the law suit settlement will provide impetus for the U.S. Congress to move on federal legislation aimed at the Northern Marianas.

“Now the plunderers have turned political analysts. I see these comments from Meyerhoff coming from a perspective which evidences the conspiracy of politicians, unions, federal administrative offices, Milberg & Weiss and their spin-off activist groups, which for years and years now have tried to ruin our industry and the Commonwealth of the Northern Marianas along with it. All in the name of justice and human rights when it’s nothing more than constituency and their pocketbooks,” Pierce continued.

“If this cast of characters are successful in their destructive plan, the workers they chose to say they protect will be returned from their lucrative temporary work in Saipan to places where conditions really are bad, while rapacious Milberg & Weiss simply fills their pockets. Not a single American job will be returned to the mainland in apparel manufacturing, in exchange for Saipan’s American citizens losing theirs. The Commonwealth’s economy will collapse forcing the federal government to do what it does best and raise taxes to support these islands. And, the stateside politicians will merely reinforce a system geared toward keeping the power actually away from the people,” he said

“Our industry has satisfied the goals of the mutually agreed upon tariff agreement by (1) lessening dependency on federal funding, (2) creating a private tax base in this insular area, and (3) providing jobs for thousands of the island’s citizens and residents. And, just in case anyone would care to actually investigate, our factories are some of the cleanest in the world from a labor standards perspective,” Mr. Pierce concluded.

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