Mirage, Commonwealth Garment close factories
Saipan Tribune, Micronesia
By Ferdie de la Torre
Reporter
Mirage (Saipan) Co. Ltd. and Commonwealth Garment Manufacturing Inc. shut down their operations yesterday, rendering 125 alien workers and 31 resident workers jobless.
Labor investigator Carlos Camacho told Saipan Tribune that most of the foreign workers of Mirage and Commonwealth Garment already left the CNMI.
Camacho said 57 alien workers of Mirage and 35 foreign national workers of Commonwealth Garment went back to their home countries.
Camacho said Mirage and Commonwealth Garment had 21 and 10 resident workers respectively.
Labor administrative hearing officer Jerry Cody granted transfer relief to eight guest workers of Mirage and 25 alien workers of Commonwealth Garment who expressed intention to seek new employers.
Camacho said those interested to transfer are required to come to Labor’s Division of Employment Services and register on or before Feb. 25, 2014.
In separate administrative orders, Cody said the work permits of the 33 remaining guest workers of the two factories were revoked effective yesterday.
Cody said these 33 alien workers may transfer to non-garment jobs if they are qualified.
The job vacancy announcement requirements are waived for transfer to same job category with other garment manufacturers.
“Any employee who submits a transfer to another garment job (garment to garment transfer) on or before Feb. 25, 2014 is not required to register at the Division of Employment Services (DES),†Cody said.
He said if these workers do not register with DES by Feb. 25 they will be no longer be eligible to transfer relief and will be required to come to Labor Enforcement Section immediately in order to make arrangements for their repatriation.
Last December, Mirage and the Commonwealth Garment, through their general manager Calvin Ye, informed the Labor about the planned Feb. 10, 2014, closure.
The general manager did not indicate the reasons of the closure in their notice to Labor.
However, the Gualo Rai-based factories informed their employees that the reasons are the adverse impact resulted from the implementation in the CNMI of the federal Minimum Wage Act and strong competition from garment industry of other countries and regions with lower labor wage costs.
Four other garment factories shutdown their operations this year.
Winners Corp. in Afetnas ceased its operation last Feb. 5, causing 337 alien workers and 48 resident workers jobless.
Last Jan. 28, 105 alien workers and 20 Federated States of Micronesia citizens became jobless when Poong-In Saipan Inc. closed its factory in Afetnas.
Last Jan. 18, Sam Kwang Saipan Corp. shut down its factory in Afetnas, leaving 157 alien workers and 14 resident workers with no job.
Last Jan. 13, Neo Fashion Inc. also ceased operations, rendering 88 alien workers and 13 residents workers jobless.
With the closure of Mirage and Commonwealth Garment only six factories remain standing-Rifu, Onwell Manufacturing, United International Corp., Kyung Seung Saipan Inc., Marianas Garment Manufacturing, and Uno Moda.
Many garment factories closed down on the island since January 2005, when the World Trade Organization lifted trade quotas.
CNMI used to have 34 garment factories, all located on Saipan. The garment industry used to contribute some $60 million in direct taxes a year to the local government.
