SGMA presses feds to settle Eurotex dispute

The Saipan Garment Manufacturers Association has appealed to federal labor officials to settle disputes with Eurotex in a bid to expedite payment of back wages owed to some 300 factory workers.

SGMA Executive Director Richard A. Pierce asked assistance last week from David Boback, assistant district director of the U.S. Department of Labor Wage and Hour Division’s district office in Honolulu.

“I understand that both U.S. Labor and Eurotex have deposited sums of money for distribution to the workers once a settlement is reached,” he wrote to Mr. Boback.

“We find it unfair to the injured parties to have to wait until the battling entities reach some accord before they trust each other enough to pay the poor people. Please do something to take care of these people,” asked Mr. Pierce.

He said he had been informed by its attorney that money is currently being withheld from the company’s employees as a result of some reluctance on the part of the federal labor office.

“I do not pretend to understand all that is required to work out settlement agreements with this company and your office, but someone, and I suspect that it is both U.S. Labor and Eurotex, should please find a way to pay these people some money,” added Mr. Pierce.

Some Chinese workers of Eurotex staged two protest marches in recent weeks to air their grievances against their employer and to plead their case to both the CNMI and federal authorities.

They were demanding payment of wages that have yet been given to them for the last three months. CNMI officials are hoping to distribute about $900,000 to compensate 300 workers.

Although Eurotex has been suspended from SGMA following the non-payment of wages, Mr. Pierce vowed to help its displaced workers who want to stay on the island find jobs in other garment firms.

In other issues, the executive director has requested Mr. Boback for additional training and workshop to benefit SGMA factory members which are similar to those held in May this year.

These will include training in wage and hour compliance as well as occupational health and safety. “We certainly would appreciate as much training and education as your offices can afford in this area,” said Mr. Pierce. 

Likewise, he pressed for a joint cooperation with the division that would step up SGMA’s compliance with federal wage and hour laws, while reducing violations and penalties among its members.

Garment firms on Saipan will also need further explanation on laws regarding subcontracted independent employees as they have recently been made aware that these also apply to security services, aside from embroidery, trimming, printing and laundry, according to Mr. Pierce.

“[W]e need to be made aware of the federal laws regarding our commerce. And we need your assistance to provide that to our members,” he told Mr. Boback.