Another garment factory is shutting down in Tanapag
19 Dec '06
3 min read
Kim added that all Poong In (Saipan) Inc employees will be compensated for all hours performed. “Lastly, thank you for all the service that you have rendered to our company and please consult the Personnel Office for final processing…Thank you for your understanding in this matter and good luck in your future endeavors,” he said in the one-page notice.
The company manufactures ladies' apparel for major retailers like Ann Klein, Jones New York and Kohl's, according to employees.
Since January 2005, 10 factories have closed here. These include Mariana Fashions Inc in San Antonio, Sako Corp in San Antonio, La Mode (Saipan) Inc in As Lito, Neo Fashion Inc in San Antonio, Express Manufacturing in Puerto Rico, Winners Corp 2 in Chalan Laulau, Hyunjin Saipan Inc in Gualo Rai, American Pacific Textile in Tanapag, Hansae Saipan Inc in Gualo Rai and Handsome (Saipan) Inc. in Tanapag.
Poong In will be the 11th factory to close due to the competition from Third World countries that pay their workers less than the CNMI's minimum wage of $3.05 an hour, which was last set in 1996.
Due to the factory closures, total garment industry sales reached only $531 million in fiscal year 2006, a 24 percent or $172 million drop from FY 2005.
This is also far below the annual sales the CNMI garment industry enjoyed in its peak years of 1999 and 2000 which was over $1 billion annually.
To help the remaining factories remain competitive, the Fitial administration continues to lobby Congress to amend Headnote 3(a) of the U.S. Tariff Code to allow Saipan factories to use more imported raw materials for their garment products.