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Two more garment factories to pull down shutters
25 Jul '08
2 min read
CNMI will have to witness closure of two other garment factories as the United International Corp and Onwel Garment Manufacturers declares shut down in the next few months.
The Department of Labor has already received the confirmation notice from employers of both the factories. The news did not come as a surprise since the garment manufacturing industry of Saipan is anyway experiencing a fast approaching death due to rising cost of production and an array of other regulatory issues.
The downward trend in the sector was perceived from the diminishing tax collections that the Government records every year. Both user fees and export charges on shipment of garments started plummeting by millions since 1990s.
Workers in both the factories have been given prior notification about the closure. While Onwel plans to pull down shutters on August 21 after paying workers their due wages, UIC has decided to close on September 21 and has refrained from giving any information about labor payment.
Hundreds of foreign and local workers would be rendered jobless after this closure. However, workers alien to the country can apply with the Labor Department for transfer to a new job in CNMI so as to avoid repatriation to their home country.
The Department of Labor has already received the confirmation notice from employers of both the factories. The news did not come as a surprise since the garment manufacturing industry of Saipan is anyway experiencing a fast approaching death due to rising cost of production and an array of other regulatory issues.
The downward trend in the sector was perceived from the diminishing tax collections that the Government records every year. Both user fees and export charges on shipment of garments started plummeting by millions since 1990s.
Workers in both the factories have been given prior notification about the closure. While Onwel plans to pull down shutters on August 21 after paying workers their due wages, UIC has decided to close on September 21 and has refrained from giving any information about labor payment.
Hundreds of foreign and local workers would be rendered jobless after this closure. However, workers alien to the country can apply with the Labor Department for transfer to a new job in CNMI so as to avoid repatriation to their home country.
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