AGO defends Labor vs Sun Mei’s allegations

The Attorney General’s Office defended the Department of Labor yesterday against an allegation that the agency violated the due process rights of an employer.

David Hutton, the special assistant attorney general for garment issues, provided Saipan Tribune a copy of the memorandum he had filed at Labor’s Administrative Hearing Office regarding the suspension of the processing of applications of Sun Mei Corp.

In the memorandum, Hutton listed nine cases filed by employees or opened by the Division of Labor against Sun Mei within the past 12 months. The allegations included unpaid wages, breach of contract, failure to provide work, wrongful termination, abandonment, illegal recruiting fees, and illegal activities.

Hutton maintained that, contrary to Sun Mei’s claim, the Division of Labor’s move to suspend the processing of the company’s applications was legal and justified.

He said the Alien Labor Rules and Regulations authorize the Labor director to suspend processing applications for employers who are believed to be in violation of labor laws or regulations.

The reason for the authorization, he added, was obvious: “If an employer has a record of complaints and pending cases the department would be negligent in allowing a violating employer to continue to use nonresident labor and commit more violations.”

According to Hutton, Sun Mei’s history of complaints by nonresident workers reflects an apparent inability to either pay workers for work performed, or to provide work.

“Given the number of outstanding claims against this employer the department would be closing its eyes to likely problems and potentially inviting additional complaints should employment relationships between Sun Mei and the prospective employees be affirmed and then go sour,” he said.

Hutton added that Sun Mei was not deprived of its due process rights.

He noted, “Due process entitles an aggrieved person a ‘meaningful notice and a meaningful opportunity to a hearing appropriate to the nature of the case.’ Such a hearing is now being conducted in this matter.”

The issue stemmed from an April 1, 2005 memorandum issued by Labor director Dean O. Tenorio requesting the Processing Section to “pend” applications filed by Sun Mei.

Attorney Stephen C. Woodruff, on behalf of the company and three of its employees, questioned the Labor director’s authority to do so.

Woodruff argued that the regulation—which purportedly gives the Labor director the power to suspend processing—“only authorizes the director to ‘refuse to approve’ applications. It says nothing about suspending processing or holding applications in indefinite abeyance without notice and opportunity to be heard.”