Labor: La Mode committed other violations

La Mode Inc. has committed numerous labor law violations other than non-payment of wages, according to the Division of Labor.

In a determination, Labor director Dean Tenorio faulted the defunct garment company for abandoning its workers, engaging in an unauthorized employment contract, failing to provide workers copies of their employment contract, and receiving recruitment fees.

The determination was issued in connection with the compliance agency case opened by the Division of Labor on behalf of La Mode workers.

Based on La Mode payroll records, the grand total amount of unpaid wages owed to the workers is $395,278.83. This covers pay periods from December 2004 up to March 2005.

The payroll records also confirmed that La Mode from 2004 to 2005 employed two nonresident workers—Chanchal K. Mondal and Fandao Quan—without filing their permit applications at the Department of Labor.

Further, several employees interviewed by Labor investigators claimed that they paid large requirement fees in China before their arrival to work in La Mode. The employees said the arrangements for their employment were made through persons whom they paid money to in China and Jiang Lie, an office assistant employed by La Mode.

The recruitment fees that the employees said they paid ranged from $4,500 to $8,072.29.

La Mode breached their employment contract by terminating the workers’ contract without adequate notices and by failing to provide work for the remainder of the contract period.

The determination also stated that between October 2002 and October 2004, the Labor Enforcement Section has received over 30 complaints of unpaid wages and bounced checks from La Mode employees and continues to receive the same complaints to date.

Last week, the Department of Labor heard the compliance agency case involving La Mode workers.

Jesse Atoigue, Labor public information officer, reported that 260 of the 313 La Mode employees registered with Labor during the two-day hearing.

Of those who showed up, 183 have already received the administrative orders addressing their claims against their former employer, including unpaid wages, repatriation, and transfer relief.

La Mode ceased its operations on Saipan on April 25, becoming the third garment company to do so since the Jan. 1 lifting of trade quotas on the textile industry. The two other companies are Sako Corp. and Mariana Fashions Inc.