Garment company Sam Kwang Corp. closing tomorrow
Saipan Tribune, Micronesia
By Ferdie de la Torre
Reporter
Garment manufacturer Sam Kwang Saipan Corp. is shutting down its factory in Afetnas tomorrow, Saturday, but most of its 157 alien workers are opting to stay and find new employers.
Labor investigator Carlos Camacho disclosed that of the 157 guest workers at Sam Kwang, only 45 have decided so far to go back to China after the closure. The 112 remaining guest workers want to look for jobs here.
Fourteen resident workers will also be affected by Sam Kwang’s shutdown, according to Camacho.
Labor has given these 112 alien workers 45 days to seek new employers. They may transfer to non-garment jobs if qualified.
If any employee fails to submit a timely application for transfer, or asks to be repatriated, Sam Kwang must provide a repatriation ticket within 15 days, Labor said.
All work/entry permits for the workers are revoked effective this Sunday, Jan. 20.
In November 2014, Sam Kwang, through its corporate secretary Jone Suk Park, informed Labor Secretary Gil M. San Nicolas about the factory’s closure effective on Jan. 19, 2014.
Park cited that 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.
“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.
Last Sunday, Jan. 13, garment manufacturer Neo Fashion Inc. also ceased operations. Similarly, most of its guest workers want to stay and look for jobs here.
Neo Fashion’s closure rendered 88 alien workers and 13 resident workers jobless.
Poong In Saipan Inc. will also close at the end of the month. L&S Apparel Inc. ceased operations on Dec. 31, 2014, but many of its alien workers are still here looking for other jobs.
Many garment factories closed 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.
