Concorde factory shuts down

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Posted on Dec 12 2006
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– Garment workers get refunds
– Workers hold five against their will in Lower Base

Concorde Garment Manufacturing Inc. has shut down, nearly two months ahead of its original closure deadline of Feb. 6, 2007.

Concorde legal counsel Steve Pixley confirmed that the factory was padlocked effective last night.

“Yes, it’s being done right now. It’s being secured,” said Pixley in an interview.

He said the issue would be discussed formally with the Department of Labor at 7am today.

Concorde, which began operations on Saipan 23 years ago, currently employs some 1,400 workers. These include about 1,300 Chinese workers and 100 Filipino workers.

The factory announced its Feb. 6 closure Tuesday last week.

[B]Reimbursement[/B]

Just before yesterday’s closure of the factory, over 1,000 Concorde workers got one of their demands—a refund of their recruitment fees.

The checks did not come from their recruiters, who are based in China, but from Concorde. The factory hopes to get reimbursed by the recruitment agencies.

“It’s Concorde management that made that decision. We want to resolve this issue. We want to negotiate. Hopefully, we get reimbursed [by the recruiters],” said Pixley.

The Concorde workers claimed their recruitment refunds at the Garapan Central Park.

The Chinese workers reportedly paid $3,000 to $4,000 each to government-approved recruitment agencies in China before coming to Saipan. The workers signed a payment plan with the recruiters, which spell out how long they would be able to pay off the entire fee. Some agreements call for a two-year or three-year payment scheme.

According to Concorde officials, workers received a pro-rated reimbursement of recruitment fees based on length of service. To make the transactions convenient, workers were given the option of receiving reimbursements by cash, direct deposit to bank accounts, or remittance to China.

[B]‘Hostage’ incident [/B]

Three representatives of China-based recruitment agencies who are on island, as well as two representatives of the Chinese Economic Development Association, were held against their will by some of the protesting workers inside Concorde corporate office in Lower Base Monday night.

The management said that, after learning that the recruiters were in, the workers ran to the office and would not let the recruiters and the CEDA representatives out of the premises. Some more workers came and stayed outside the building.

The five were not able to leave the building until early Tuesday morning, when local police and Federal Bureau of Investigation agents stepped in to resolve the matter. The recruiters and CEDA representatives were taken by authorities through a back door.

A KMCV report yesterday said no charges will be filed against the workers who held the six persons against their will.

[B]Road protests[/B]

Yesterday morning, some of the workers marched to Horiguchi building, which houses several federal offices, while others went to Fiesta Resort & Spa, which is owned by Concorde’s sister company, Tan Holdings, at about 11:25am.

The workers, carrying streamers and placards that read “Help Us” and “Give Our Money Back” in Chinese and in English, sat down in front of the Horiguchi building.

Security officers and police officers immediately positioned themselves around the building. Police cars blocked both ends of the road in front of the building to secure the protestors. A fire truck was also parked near the intersection of Beach Road.

Assistant attorney general Kevin Lynch, Department of Public Safety commissioner Rebecca Warfield and some police officers talked with the protesters through an interpreter.

In an interview with Saipan Tribune, Warfield said her specific instruction was to keep the peace and to enforce the law. Warfield said she understands that this is a labor issue and the workers have a right to protest.

“The Constitution protects that right—the right to free speech. However, there’s certain restriction that you have to comply with when enforcing that right. And we want to keep the public safe and we want to keep the workers safe,” Warfield said.

Asked why there was a fire truck in the area, the commissioner explained that it was there to serve as a barricade to keep everyone safe, to make sure that no one gets run over, and no one gets hurt.

The protestors later proceeded to the Garapan Central Park. Police officers escorted them. It was not clear who was leading the workers.

[B]Check issuance[/B]

Concorde accountants set up a claim counter at Garapan Central Park’s pavilion to facilitate the issuance of checks, reimbursing the workers of their recruitment fees.

With police and Labor personnel in sight, the workers lined up and waited for their turn to get inside the fenced venue.

Workers were called in batches of eight. Once inside the pavilion, Labor personnel asked for their company IDs and work permit number for accountability purposes, said Labor hearing director Rose Ada.

“We want to make sure that checks are given to the right people,” she said.

After getting their checks, the workers were asked to board a bus to their barracks.

As of 6pm, Ada estimated that some 400 workers were still in line for the refund checks.

As part of the accountability measure, the payment process was being recorded on video. “It’s to document who gets paid. Who is actually here right now, who gets the checks,” said Ada.

Nearly 50 police officers and Labor personnel were deployed to the area.

[B]Govt support[/B]

The CNMI government lent its support to Concorde, saying that it is working diligently with Concorde representatives and the federal Labor Ombudsman to ensure the concerns of these workers are addressed judiciously.

Acting Gov. Timothy P. Villagomez said that yesterday’s payments to the workers “offer them the assurance that we hear their concerns and are committed to addressing those concerns in a timely manner.”

Labor representatives led by Labor Director Robert Magofna were on-hand at Garapan Central Park to assist with payments, at the request of Concorde.

“The company asked the government to monitor the payments for accountability purposes and to help ensure all CNMI and federal labor laws are being followed in this process,” said Villagomez, speaking after a video conference on the matter with Gov. Benigno R. Fitial, who is in California.

“Operations went very smoothly,” said Labor Secretary Gil San Nicolas, toward the end of the day. “Checks were issued in an orderly fashion.”

Federal Labor Ombudsman Jim Benadetto will continue meetings today with worker representatives to aid in addressing their concerns.

Concorde, a sister company of Tan Holdings Corp., recently announced its closure on Feb. 6, 2007.

Hundreds of the 1,046 Chinese workers from Concorde staged a protest last Friday when it was announced the company, the largest garment manufacturer in the CNMI, will be closing.[I][B](with Ferdie De La Torre)[/B][/I]

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