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CNMI bears the loss of another garment unit

May '08
Kyungseung (Saipan), one of the few remaining garment manufacturers in Commonwealth of the Northern Mariana Islands, went for a shut down on May 24 leaving nearly 113 workers jobless.

Closure of textile manufacturing enterprises in the country has become a common phenomenon ever since World Trade Organization lifted trade quotas in January 2005. However, what is so concerning about the termination of this garment producing unit is that all these workers left without means to earn a living, flocked from other countries and were alien to Saipan.

In this case, the ill-fated workers will either have to find a new job within a period of 30 days or will be deported to their country of origin by Government authorities.

Gyeong Bog Lee, Kyungseung General Manager stated that the company closed down due to the adverse economic condition brought by the application of the Federal Minimum Wage Act in the CNMI, stiff trade competition from China and other Asian countries, increased costs of doing business in the country, and lack of orders.

With this closure, only six garment factories remain in Saipan of the 34 existing earlier. In the beginning of 2008 alone, six garment factories closed down bringing misfortune to about a thousand workers.

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