A SUBCONTRACTOR of Imperial Pacific International LLC, under the supervision of two IPI employees, was allowed onto the jobsite on Jan. 29, 2021 to resume the removal of a crane despite the federal court’s stop work order, IPI attorney Michael Dotts said in a third status report filed in the District Court for the NMI.
“IPI employees allowed this, and were present for supervision, because of a miscommunication regarding the stop-work order,” Dotts added.
He said an IPI employee who had been in the courtroom on Jan. 28, 2021, believed that the stop work order did not cover removal of the crane, and he told this to other IPI employees.
The other IPI employees then brought the subcontractor onto the jobsite, Dotts added.
He said he discovered that the crane was being removed through the filing made in court by Glenn P. Bell, the Italian construction worker team leader.
Bell told the court that the IPI subcontractor staffers worked on site Friday to dismantle tower crane 4.
He said, “This appears to be a blatant disregard, again, [of] court directions.”
But Dotts said he had already clarified the stop work order with the IPI construction personnel and the removal of the crane had stopped.
“IPI has since advised all employees that no construction work on the resort jobsite can take place at all until further notice. IPI has advised security not to allow any work to be done,” Dotts stated in the status report filed Monday.
Payroll
As for IPI payroll No. 3, Dotts said it was distributed to employees on Friday, Jan. 29, 2021 “without any significant issues or problems.”
But he said the funds that had been wired on Jan. 22, 2021 to cover payrolls 1 and 2 were returned by the bank.
He said IPI is awaiting the receipt of replacement funds and as soon as the funds are received, IPI will proceed with the distribution of payrolls 1 and 2.
“IPI will keep the U.S. Department of Labor updated on the funding for the payments of payrolls 1 and 2,” Dotts added.
Repatriation
The lawyer said IPI has funding to begin the repatriation of some of its foreign workers.
“The first group of workers left today (10 Taiwanese citizens),” Dotts said on Monday.
Fifty-three other workers from various countries are booked to leave on Feb. 8, 2021 transiting through South Korea, he added.
In the last court hearing, Dotts asked the USDOL to restore the H2-B visas of IPI workers due to the difficulty in repatriating amid the Covid-19 pandemic.
USDOL revoked the H2-B visas because of IPI’s non-payment of wages and other violations.
USDOL senior trial attorney Boris Orlov told the court that another unit within USDOL “handles these kinds of situations,” but, as far as he knows, USDOL does not revoke or reverse these decisions.
“My understanding is, once this has been done, it’s usually not revoked or reversed,” he added.
Housing and food
Dotts reported to the court that IPI’s employee housing still has power.
“IPI will begin the process of closing housing as employees are repatriated,” he added.
On Jan. 28, 2021, District Court for the NMI Chief Judge Ramona V. Manglona told IPI that it will be placed in receivership and its assets liquidated if it fails to pay the remaining back wages of current employees and the consent judgment in the next 30 days.
The judge ordered IPI, IPI Holdings Limited and IPI chairwoman Cui Li Jie to pay the current employees’ remaining back wages, the balance of the consent judgment at $1,182,793, and to create an escrow account to cover future employee payrolls in the amount of $800,000.
The judge also denied IPI’s request to lift the stop work order but allowed non-construction employees, such as administrative personnel, security, and kitchen staff to return to work.
