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Labor allows early transfer for alien garment workers
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Posted on May 11 2008
The Department of Labor has 18 alien workers of garment manufacturer Kyungseung (Saipan) Inc. to transfer now ahead of the factory’s scheduled shutdown next week.
Labor investigator Carlos Camacho told Saipan Tribune on Friday that of the 18 factory workers (all Chinese) three have canceled their request and expressed intention to go back to China.
Camacho said there are still 113 aliens currently working at Kyungseung’s Sadog Tasi factory.
Camacho said the company would give him this week a list of workers that are needed during the transition period.
He is expected to visit Kyungseung on May 23, a day before the factory’s planned closure, to distribute to the workers Labor’s administrative order for their transfer rights.
With respect to the early transfer of 18 workers, Labor administrative hearing officer Herbert D. Soll said the 18 are among the workers holding permits with longer validity than the intended operations of the company.
Labor determined that the 18 are not at fault and that they have the right to find another employer.
Soll said garment manufacturer Uno Moda Corp. is waiting to receive the 18 workers and that time is of the essence in this transfer.
Kyungseung general manager Gyeong Bog Lee had earlier informed Labor Secretary Gil M. San Nicolas about the factory’s closure on May 24.
In a letter to the employees, Lee cited the adverse economic condition brought by the application of the Federal Minimum Wage Act in the CNMI, the stiff competition against China and other Asian countries, the increased costs of conducting business in the CNMI, and lack of orders as reasons for ceasing operation.
When Kyungseung closes, only six factories will remain standing on Saipan.
Since the start of 2008, six garment factories have already shut down, affecting close to a thousand workers.
Many garment factories on the island started ceasing operations since January 2005 when the World Trade Organization lifted trade quotas worldwide.
CNMI used to have 34 garment factories, all located on Saipan. The garment industry used to contribute some $60 million in direct taxes a year to the local government.
