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Oversight board wants La Mode inspection
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Posted on Mar 21 2005
The Garment Oversight Board said yesterday that it would request for a special inspection of La Mode, in connection with the monitoring of garment factories’ compliance with a court-approved settlement agreement that ended a class action suit against them nearly two years ago.
Board chair Timothy Bellas said that Veritae, a private contractor tasked to conduct the monitoring, would first conduct its inspection of La Mode and submit its recommendation to the board, before the latter decides on whether or not to impose sanction on the garment firm.
The board has the power to place a garment manufacturer on probation. That status temporarily suspends the manufacturer from accepting orders from apparel retailers that are part of the settlement agreement. The settlement agreement was approved by Saipan’s federal court in May 2003.
La Mode, however, is reportedly ceasing its Saipan operations.
Bellas and board member Richard Guy met yesterday and agreed to request Veritae for a special review of La Mode’s case.
Bellas said the board’s focus right now is the possible non-compliance of La Mode, whose employees are complaining of back wages.
The board has taken no position on Sako Corp. and Mariana Fashions, two other Saipan garment factories that have closed down, as there was no complaints about back wages that have reached the board so far.
The board regularly conducts inspections on garment firms’ facilities and those of their subcontractors to ensure compliance with some 59 standards set by the settlement agreement in several aspects of their operations, including occupational safety, as well as workers’ living conditions and wages.
The oversight board came to existence when U.S. District Court Chief Judge Alex R. Munson approved the $20-million settlement agreement in consolidated class action suits. The settlement earmarked $4-million as monitoring fund to prevent the harm previously caused by the industry to the workers.
