Labor allows transfer of 49 ex-workers of defunct Neo Fashion

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Posted on Dec 09 2005
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The Department of Labor Division of Administrative Hearings has authorized 49 of the 381 workers of the defunct Neo Fashion Inc. to seek transfer to employers until Jan. 15, 2006.

Hearing Officer Maya B. Kara said the transfer employers should file an application for a one-year labor permit for employee/complainant within that time.

Kara said the employees are free to seek employment within or without the garment industry.

All work permits and temporary work authorizations issued to former employees of Neo Fashion are cancelled, Kara said.

The hearing officer said complainants who do not wish to seek a transfer to another employer are to be repatriated to the country of their origin.

These persons, she said, shall register with the department for repatriation no later than Jan. 15, 2006.

Those who are unable to provide proof of the filing of a labor permit application to a transfer employer within the 45-day period would be required to depart from the CNMI.

The primary responsibility of repatriation rests with the last employer of record.

In the event that the last employer of record is unavailable or unable to fulfill its repatriation obligation, the issuer of the employer’s bond shall be liable for the costs of repatriation upon demand by Labor, Kara said.

If the sureties default on the bond, she explained, the government would use its best efforts to repatriate the complainants to their country.

Labor records show that in July 2005, Labor filed a case on behalf of 381 workers to conduct an investigation regarding the anticipated closure of business operations by Neo Fashions and to oversee the company’s full compliance with applicable labor laws.

The number of workers was reduced because some had been repatriated, reallocated or transferred.

Labor identified 49 complainants who are currently eligible for transfer relief.

Kara said because the complainants are entirely without fault in this matter, she finds that all complaints are entitled to transfer relief.

Since Neo Fashion ceased its operations, all work permits issued to former employees of the company should be cancelled, she added.

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