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La Mode resigns from GOB
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Posted on Apr 20 2005
A garment company has resigned from the industry’s monitoring program—a move that will bar it from doing business with garment manufacturers and buyers that are signatories to a class action settlement about two years ago.
La Mode tendered its resignation from the Garment Oversight Board on April 6. The board monitors garment factories’ compliance with the court-approved settlement.
The board earlier said that its contractor would inspect La Mode to determine the company’s compliance with the settlement, of which it was a signatory. The board has been considering the possible imposition of sanctions against La Mode if the company is found to be non-compliant.
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.
There were reports that La Mode would cease its business operations on Saipan. The factory, however, reportedly continues to operate with significantly reduced manpower of about 50.
GOB chair Timothy Bellas said yesterday that the board would still take appropriate actions regarding La Mode’s case regardless of its resignation. The GOB action, which may include placing La Mode on probation, has yet to start.
Probation or resignation from the monitoring program has the same effect in that it restricts the company from doing business with the parties to the class action settlement.
The GOB 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.
Scores of La Mode workers had complained of unpaid wages, but the Department of Labor had reportedly determined total back wages at $342,000. The department reportedly allowed some workers to seek other employment.
