Pacific Magazine > Daily News

Another Saipan Garment Factory Closes

Monday: May 26, 2008

(Saipan Tribune)

Garment manufacturer Kyungseung (Saipan) Inc. shut down on Saturday, putting 113 people out of work.

The Saipan Tribune reports Labor Administrative Hearing Officer Jerry Cody on Friday revoked the work permits of all 113 foreign workers effective on the day of closure.
However they have a chance to find work with new employers, and seven days to register with the Labor Division of Employment Services.

Last May 6, Labor granted early transfer rights to 18 alien workers of the Sadog Tasi-based factory.

Kyungseung general manager Gyeong Bog Lee says the closure is due to the adverse economic condition brought by the application of the Federal Minimum Wage Act in the CNMI, the trade competition in China and other Asian countries, the increased costs of doing business in the CNMI, and lack of orders.

Just six garment factories remain on Saipan. The CNMI used to have 34 garment factories, all located on Saipan.

http://www.saipantribune.com/newsstory.aspx?newsID=80311&cat=1