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Michigan Inc to shut down factory
07 Mar '07
1 min read
Commonwealth of the Northern Mariana Islands (CNMI) garment manufacturer Michigan Inc will shut down its factory operating in the Saipan Island on March 30, 2007.
Michigan Inc, which manufactures Gap and Banana Republic brands of apparel, has been in operation since September 1987.
The company had cited reasons of financial difficulties and deficit due to competition with the lower wages of Asian countries for the closure of the factory.
Another reason for the shut down is that the liberalization of trade rules has allowed Third World countries to export garments to the US since January 2005, and as a result, many garment factories in the CNMI have shut down operations.
Some 200 resident and nonresident workers of different nationalities will be affected by this closure.
The Labor officials have decided to conduct transfer hearing or for any possible claims of the affected workers on March 27 or three days before Michigan's scheduled shutdown.
Michigan Inc, which manufactures Gap and Banana Republic brands of apparel, has been in operation since September 1987.
The company had cited reasons of financial difficulties and deficit due to competition with the lower wages of Asian countries for the closure of the factory.
Another reason for the shut down is that the liberalization of trade rules has allowed Third World countries to export garments to the US since January 2005, and as a result, many garment factories in the CNMI have shut down operations.
Some 200 resident and nonresident workers of different nationalities will be affected by this closure.
The Labor officials have decided to conduct transfer hearing or for any possible claims of the affected workers on March 27 or three days before Michigan's scheduled shutdown.
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