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Guidelines eyed for laying off garment workers
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Posted on Apr 26 2005
Plans are underway for the establishment of guidelines for the ethical laying off of workers within the garment industry.
Federal ombudsman Jim Benedetto said yesterday that the Saipan Garment Manufacturers Association had agreed to discuss and adopt an industry standard for downsizing of its members’ facilities.
The standard, he said, would ensure maximum notice to the workers, fair and rational method of determining who is laid off or not renewed, timely payment of all wages, and prompt issuance of repatriation tickets.
The establishment of the guidelines is part of a partnership agreement signed among the various agencies involved with the garment industry. Signatories in the partnership agreement are the Department of Labor, Attorney General’s Office, Federal Ombudsman’s Office, Garment Oversight Board, Chinese Economic Development Association, and SGMA.
“I think it’s in [the garment industry’s] interest to comply with what they agreed to do. They understand that the bad publicity gives not just the government a PR blackeye, but also their industry,” said Benedetto, who was the guest speaker at yesterday’s Saipan Rotary Club meeting at the Hyatt Regency Saipan.
The federal official said that among garment manufacturers, L & T Corp. has set a good example by establishing a procedure for laying off workers.
Under the apparel company’s policy, workers whose contracts are up for renewal are given the option of either signing a short-term contract based on the company’s downsizing schedule or not renewing altogether.
“That’s much preferable if you think about it because that gives people some choice,” Benedetto said.
He added that by hiring efficiency experts who monitor the workers’ productivity, L & T Corp. has a rational method of determining which workers should stay or go during the downsizing process. (The Saipan Tribune is an affiliate of Tan Holdings Corp., whose parent company is L&T Corp.)
