SGMA—The Saipan Garment Manufacturers Association (SGMA) has submitted additional comments to the CNMI Department of Labor (DOL) on previously published Proposed Alien Labor Rules and Regulations seeking revisions and amendments to the proposed labor regulations promulgated to govern employment practice in Saipan’s largest industry and other benefactors of nonresident employees.

To the Secretary of labor, SGMA expressed appreciation that certain earlier comments and clarification had been incorporated by DOL, while continuing with comments on subjects that were not modified.

The apparel association restated its opposition to an increased bond amount as “unjustified” by experience, costs or the validity of the bonding companies to deliver what is promised. SGMA feels that DOL is merely requiring employers to pay greater premiums for no justifiable reason, other than the premise that more is better.

On the issue of maximum allowable deductions for food and housing of $100, DOL had offered that an employee need only provide the employer with on month’s notice that they intend to withdraw from a prior commitment to be boarded at company provided facilities.

SGMA stated that they do not believe DOL has been realistic or logical with this provision.

“Suppose an employer contracts a third party to provide housing. A standard one-year contract is realistic. What if an employer brings in new employees, places them in that housing, and then half the employees decide to leave two months later ? The employer still must pay rent to the landlord.”

SGMA offered a good compromise at the duration of the standard one-year employment contract.

SGMA re-offered comments on medical service provisions on services provided to employees by transportation to services of the employees’ choosing, and suggested that DOL reexamine insurance and cost requirement ramifications to employers and employees.

SGMA earlier requested that employers and employees share costs for insurance, or direct payment for services, a change from 100% employer responsibility, to promote better health practices and awareness for employees.

SGMA is comprised of 24 of Saipan’s 26 factories