Another garment factory closing
Saipan Tribune, Micronesia
Sam Kwang’s shutdown will affect 117 alien workers, 23 resident workers
By Ferdie de la Torre
Reporter
Another garment manufacturer-Sam Kwang Saipan Corp.-is shutting down operations on Saipan by January 2014. The closure will affect 117 alien workers and 23 resident workers.
Sam Kwang, through its corporate secretary Jone Suk Park, notified on Friday Department of Labor Secretary Gil M. San Nicolas about the factory’s closure effective Jan. 19, 2014
Park said the rising costs of labor, the increased competition from China and other Asian countries, and the increased costs of doing business in the CNMI have made their operations impossible.
Park said the company does not anticipating any problems for the closure.
“On behalf of Sam Kwang, I want to thank you and the employees of the Department of Labor for the good work and assistance provided to us over the last several years,†Park told San Nicolas.
The Afetnas-based Sam Kwang will be the 18th garment factory to close down on Saipan since January 2005, when the World Trade Organization lifted trade quotas.
The liberalization of trade rules has allowed Third World countries to export their garments to the U.S. As a result, many garment factories in the CNMI shutdown operations.
After receiving the letter, Labor counsel Eleonor Nisperos, Labor investigator for garment section Carlos Camacho, and Glenda Reyes of Labor’s garment processing conducted a hearing on Friday where they discussed the planned closure of Sam Kwang, L&S Apparel Inc., and Jin Apparel Inc.
Camacho said he is going to visit the three garment factories as part of the Labor procedures to determine whether all Labor laws are being complied in the planned closures.
L&S Apparel and Jin Apparel recently notified Labor about their intention to close and suspend business operations. L&S will cease operations on Dec. 31, 2014. Jin Apparel will suspend its operations from Dec. 31, 2014 until March 31, 2014.
The closure of L&S will affect 126 alien workers and 51 resident workers. Jin’s Apparel’s suspension will affect 81 nonresident workers and 37 resident workers.
