SGMA welcomes new member

In a true success story for the Saipan Garment Manufacturers Association and its Code of Conduct, a factory that had previously been shut down due to labor problems has been turned around and welcomed back to the membership.

After rigorous examination, a thumbs up recommendation by the SGMA Compliance Committee has resulted in a unanimous vote to welcome in RIFU Apparel Corporation.

Under new ownership and management, RIFU now joins the 30 other factories on Saipan that are members of the association.

“RIFU’s acceptance into our association measures the true worth of the SGMA Code of Conduct,” according to SGMA Executive Director and the industry’s spokesperson, Richard A. Pierce.

“The true purpose of this Code, and the functions of the association’s committees and board and general membership, has never been to eliminate unworthy factories, but to reclaim corporate entity wherever possible, save jobs for residents and non-resident workers alike, and to safeguard a valuable revenue source for the islands.”

RIFU’s history of manufacturing men’s and women’s clothing on Saipan began as Micronesian Garment Manufacturers.

The company resigned from SGMA over a year ago after pressure to address labor problems brought to the attention of SGMA through its Code of Conduct.

The firm suffered through numerous citations and penalties by local and U.S. Department of Labor officials for various problems, including unpaid wages to workers in 1999, but then it failed when major U.S. buyers canceled orders.

New potential buyers for RIFU stated that they would not do business with the reborn company unless it complied with SGMA’s Code of Conduct and strict membership standards.

The factory was sold, renamed and refitted with new equipment under new ownership in the year 2000. General Manager Kidong Choi petitioned for SGMA membership under the company’s new name several months ago.

With full knowledge of the difficult history of the factory, SGMA’s Compliance Committee inspected and re-inspected RIFU’s total operations and records. They also interviewed numerous individual workers and verified that the factory had indeed turned around.

“After a thorough and careful review of RIFU’s facilities and records, the committee is very proud and pleased to report that RIFU has shown profound and substantial improvements,” said SGMA Compliance Committee Chairman Joe Salas in a letter to SGMA Board Chairman Gonzalo Q. Santos and the Board of Directors.

“The committee further recommends that RIFU is ready to join the membership of SGMA, and fully recommends for your consideration of its acceptance,” he added.

The garment industry of Saipan currently employs approximately 15,000 people, of which 2,400 are local residents.

A 1999 economic study funded by the US Department of the Interior stated that the garment employment multiplier in the Saipan community is 1.5, which means that for every two garment jobs, one job is created in the local government or private sector.

The garment industry brings to the CNMI approximately $225 million in total economic contributions each year, including approximately 38% of the total revenue of the local government.