Previous Story
144 to become jobless soon
|
Posted on Apr 05 2008
A total of 144 factory workers will become jobless next month when another garment manufacturer, Kyungseung (Saipan) Inc., shuts down operation.
Labor investigator Carlos Camacho told Saipan Tribune on Friday that the closure of Kyungseung effective May 24 would affect 141 alien workers and 13 resident workers.
Camacho said they are now doing a survey as to who among the 141 foreign workers are either going back to their home countries or will be staying to look for other employers.
Camacho said that he went to Kyungseung’s factory in Sadog Tasi on March 31 to discuss Labor’s concerns with the factory’s management. He also answered questions about repatriation issues and pending labor cases.
The Labor investigator said he would visit the factory again on April 21 to address the employees’ right to transfer and any complaints.
Kyungseung general manager Gyeong Bog Lee recently informed Labor Secretary Gil M. San Nicolas about the factory’s closure on May 24.
In a letter to employees, Lee cited the adverse economic condition brought by the application of the Federal Minimum Wage Act in the CNMI, the trade competition in China and other Asian countries, the increased cost of doing business in the CNMI, and the lack of orders as reasons for ceasing operation.
“Because of the company has no other choice but to close down the garment factory, it is with deep regret of the decision I had to make. Also, I would like to take this opportunity to thank each of you for the services you provided to this company,” Lee told the employees.
When Kyungseung closes next month, only five factories will remain on Saipan: Rifu, Onwell Manufacturing, United International Corp., Marianas Garment Manufacturing, and Uno Moda.
Six garment factories have already closed since the start of 2008, 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.
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.
