‘Rifu Apparel is not under investigation’

Garment firm Rifu Apparel has clarified that it is not under any investigation by U.S. Department of Labor Wage and Hour Division, contrary to the impression conveyed in a recent press release issued by the division’s San Francisco office.

In that press release, which was carried by the local media, the division detailed its success in collecting $10 million in civil penalties during fiscal year 2003. Rifu Apparel was mentioned in the article as one company that was assessed penalties.

Rifu Apparel said in a statement, though, that a call to a division spokesman “revealed the facts behind the incident.”

“Payroll period in question was Feb. 9, 2004 to Feb. 22, 2004. The company routinely processes its payroll checks for payment one week after pay period ends. Payroll checks were to be released on Feb. 27, 2004. CNMI labor law allows that a companies pay employees two weeks after the end of the payroll period but Rifu’s payment policy is to make wage payments after one week. During the first three quarters of 2004, Rifu paid $9.4 million in wages to employees on time as scheduled,” said the company.

On March 3, 2004, a U.S. Department of Labor investigator reportedly arrived at the Rifu factory unannounced for a review payroll and asked to inspect the Feb. 27, 2004 payroll. During this visit, Rifu Apparel said the investigator requested additional information that was to be provided by company on his return visit of March 8, 2004.

Rifu delayed release of payroll checks scheduled for Feb. 27, 2004 on March 5, 2004.

“Funds from buyer were wired form Korea one day later than expected. Because of the weekend, the receiving bank did not credit the local bank dispensing payroll checks until the beginning of the following week. Rifu Apparel does not release checks until funds are received,” it said.

Rifu Apparel insisted that it did not break any CNMI laws and paid its workers their full wages within the two-week period allowed.

“The company was not under any investigation. The company stills maintains a policy of paying workers seven days after payroll periods ends. The intent of the news releases by the Department of U.S. Labor did not fully cover all the facts and could lead to wrong conclusions,” the company said.