Garment agreement saves 3 workers’ jobs

A timely garment agreement has saved the jobs of three alien workers who were previously denied transfer to a new employer.

Labor Administrative Hearing Officer Jerry Cody ordered the employer, Zhong Run Commercial Co. Inc., to file applications for conditional grants of transfer for the three workers—Hui Zhu Chen, Xiang Zhong Wu, and Xiu Chun Wang.

Cody, however, warned the workers that they cannot begin working until the conditional grants are approved by the Labor director or his designee.

He ordered the employer to keep production records detailing the number of pieces it produces under its Garment Services Agreement with U.S. CNMI Development Corp. for each of the next four months.

The hearing officer also directed the employer to provide the Labor director any follow-up agreement that replaces the Garment Services Agreement, which expires on Dec. 15, 2008.

“Such agreements will be made available for the Labor director’s review upon request,” Cody said.

According to Labor records, in early 2008, Zhong Run Commercial filed three permit transfer applications to hire Chen, Wu, and Wang.

The Labor Division denied the applications on the grounds that Zhong Run Commercial’s income was insufficient to justify the hiring of additional employees.

The employer and the workers appealed.

On July 25, 2008, Cody issued several administrative orders affirming the Labor director’s denial of those permit transfer applications.

Ten days after the hearing, Zhong Run Commercial submitted a written request for reconsideration of the orders. The employer cited its newly-signed service agreement with garment manufacturer US CNMI Development Corp.

In his administrative order issued last week, Cody said the prior orders were based on the Labor director’s assessment that the employer’s wages exceeded its income in the first quarter of 2008.

After the hearing, however, Cody said, Zhong Run Commercial reached a “Garment Services Agreement” with the manufacturer, US CNMI Development Corp.

Under the agreement, the manufacturer ordered 35,000 pieces of finished garments from Zhong Run Commercial at a price of $1.80 per piece.

As further evidence of its relationship with the manufacturer, Cody noted, Zhong Run Commercial produced three checks totaling more than $40,000 that it received from U.S. CNMI Garment Corp. in 2008, under different supply agreements.

The 35,000-piece order, he said, will require a four-month effort from Zhong Run Commercial’s entire work force and will yield $63,000 in income for the company.

Based on the newly produced evidence, the Labor director recommended that its denial be reversed and these applications allowed to be processed.

Cody agreed that the applications should be reversed, provided that Zhong Run Commercial meet certain requirements.