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Sako fined, workers get transfer relief
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Posted on Aug 11 2005
Former employees of the now defunct Sako Corporation were given until Sept. 23, 2005 to transfer to new employers, as the Department of Labor fined the garment company and called for the revocation of its business license.
In an Aug. 9 administrative order, Labor hearing officer Maya Kara said Sako Corp. should pay a sanction totaling $185,000—or $500 for each of its 371 workers—for abandoning its workers and committing several labor law violations.
This came upon the Labor Department’s finding that Sako committed the following violations: failure to fully compensate the workers in a timely manner; failure to timely notify the employees of its reduction in force; failure to give timely notice of termination for cause; and illegal employment of a worker named Jun Young Ham.
Sako and its officers—president Kyun Hee Kun and vice president Min Hyung Ki—were permanently barred from employing or utilizing nonresident workers in the Commonwealth. Likewise, both Sako officers were permanently disqualified from being employed as nonresident workers in the CNMI.
Further, Kara asked the Department of Commerce to initiate proceeding to revoke Sako’s business license for garment manufacturing and any other business.
As for the workers, Kara allowed them to seek a transfer employer for a period of 45 days, ending on Sept. 23. The workers were authorized to seek employment within or without the garment industry.
The transfer rights, however, do not apply to those who worked for Sako on temporary work authorizations, as well as those who have a pending labor case within a CNMI or federal court or agency.
Those who do not wish to transfer, or who fail to transfer within the given period, will be repatriated at Sako’s expense primarily. “However, in light of…Sako’s cessation of business activity, the issuer of the employer’s bond shall be liable for the costs of repatriation upon demand by the Department of Labor,” Kara said.
Sako closed and ceased its business operations on March 10, 2005 due to eviction.
