This was Press Secretary Charles P. Reyes Jr.’s comment yesterday after learning the looming shutdown of the remaining three garment factories in the commonwealth
He said the closure of the apparel manufacturing industry has resulted in substantially reduced business activities and revenues for the CNMI government.
This has prompted, he added, the need for major cuts and austerity measures in the government’s operation.
Last month, Uno Moda Corp., US CNMI Development Corp. and MGM garment factory officially informed Department of Labor that they are closing down this year.
“The CNMI government went from a budget of close to $250 million during the peak years to below $150 million today, a loss of some $100 million,” Reyes said. “The industry was once a billion dollar industry supporting employment, business activity, charitable contributions, and government operations. Much has been lost.”
Reyes said the loss of the garment industry has a severe effect on the government which now has to face great challenges.
The displaced guest workers from the garment industry should either be allowed to transfer to other employers, if available and if permitted by local regulations, or be properly repatriated according to law, with all of their due process rights respected, he said.
Some of the workers of Uno Moda already left the CNMI in December although the garment factory will officially shut down on Jan. 31.
Of its 283 workers, of whom 55 are residents, only 30 were left as part of a skeletal force after the closing date, said Frank C. Aguon, enforcement section, compliance and monitoring unit investigator of the Department of Labor.
Labor is now processing the transfer relief of workers who want to stay and find new employment, he added.
Uno Moda Corp. general manager Won Gun Bak told the Variety yesterday that their factory is closing down on Jan. 31.
He said their buyers have moved to another place and stopped placing orders for their products.
“It is very difficult to continue our operations,” he told Labor in his letter
US CNMI Development Corp. and MGM will officially close on Feb. 7 although both factories have ceased active garment manufacturing on Dec. 8.
In July last year, 239 workers of MGM garment factory were transferred to its sister company’, US CNMI Development Corp., after the establishment was burned down.
Like Uno Moda, US CNMI Development Corp. and MGM have confirmed to Labor that they already notified their workers about the closure.
They said they will provide airline tickets to their workers and assist those who want to transfer to other employers.
