Discrimination suit filed vs defunct garment firm

An alien worker has filed a discrimination lawsuit in federal court against defunct garment manufacturer Poong-In Saipan Inc.

Reynaldo L. Garcia, a Filipino, alleged that because of his national origin, Poong-In did not renew his employment contract and instead hired some Chinese nationals.

Attorney Stephen C. Woodruff, counsel for Garcia, argued that the company’s discharging plaintiff on account of his national origin constitutes an unlawful employment practice in violation of U.S. law.

Garcia asked the U.S. District Court for the NMI to order the defendant to pay him damages, lost earnings, attorney’s fees, and court costs.

Woodruff stated in the complaint that Garcia was hired by Poong-In as a maintenance mechanic sometime in 2004.

Garcia remained with the company until his contract expired on July 9, 2006, after which he was not renewed.

Woodruff said that during Garcia’s employment with Poong-In, he was variably assigned as a packer, mechanic, and security guard. Garcia’s was last assigned as a packer at the packing section.

“Defendant freely reshuffled, assigned and moved its workers from one work assignment to another work assignment, such as from sewer to packer and vice-versa,” he said.

The lawyer noted that Garcia performed his job in a satisfactory and exemplary manner.

The factory’s resident manager, Woodruff said, even cited Garcia as being “a well rounded employee” who “has a very positive attitude” and “who can speak fluently in different kind of languages such as Chinese, English and Filipino.”

“Despite his stellar work performance and exceptional qualifications, on June 16, 2006, defendant informed him in writing that his employment contract was not going to be renewed. No reason was stated in the written notice,” he said.

Woodruff said that when asked by plaintiff why his contract was not being renewed, general manager Mr. Byung Bok Lee told him that “there are too many people in the packing section.”

At that time, Garcia was the only Filipino of the more than 50 workers at the packing section, a majority of whom, if not all, were Chinese nationals.

“Plaintiff was informed that most, if not all, of the Chinese workers assigned at the packing section were subsequently renewed by defendant,” Woodruff said.

He said approximately 15 Chinese workers assigned in various sections and whose employment contracts were expiring around the expiration date of plaintiff’s contract were all renewed.

After Garcia’s discharge, the company hired more workers from China, Woodruff said.

The lawyer said that Poong-In’s reason for terminating Garcia that “there are too many people in the packing section” was not true because after his non-renewal, Poong-In renewed most, if not all, of the Chinese workers assigned with him at the packing section, and even hired more workers from China.

“The reason offered by defendant for not renewing plaintiff’s employment contract was pretextual because plaintiff was actually discharged due to his national origin,” he added.

On Jan. 28, 2008, the Afetnas-based Poong-In shut down its factory, rendering over 100 alien workers jobless.

Like the other factories that also closed, Poong-In’s reasons for folding were the rising cost of labor, the increased competition from China and other Asian countries, and the increased costs of doing business in the CNMI.