August 27, 1999 -Press Release-

SGMA Hosts Code of Conduct Conference

in Effort to Beat "Sweatshop" Image

SAIPAN, N. MARIANA ISLANDS. More than 70 resident managers and buyers turned out this week for the Saipan Garment Manufacturing Association's (SGMA) Code of Conduct Training Conference, held at the Hyatt Regency Saipan. The two-day conference put on by Business for Social Responsibility (BSR), featured hands-on instruction in various federal and local laws, including simulated inspections by top officials from Region IX OSHA. Commonwealth of the Northern Mariana Islands officials, including Governor Pedro P. Tenorio and Secretary of Labor and Immigration Mark Zachares also made appearances during the second day of meetings.

Determined to beat a "sweatshop" image perpetuated by notoriously protectionist garment unions and activists on the U.S. mainland, this is the third time the Saipan's factories have joined together to learn from international experts in labor law enforcement. The industry has a lot at stake: since the beginning of this year it has also been subject of a $1 billion class-action lawsuit for alleged violations of the Fair Labor Standards Act. Filed in San Francisco, San Diego and Saipan, the suits and a vicious publicity campaign to go along with it have been masterminded by Milberg Weiss Bershad Hynes & Lerach LLP, a San Diego law firm whose principals have threatened publicly to, "spend millions upon millions in litigation," against 18 leading American retailers and Saipan manufacturers.

"It's been a difficult year and we definitely needed the inspiration from BSR and working together in this conference," said Richard Pierce, executive director of the SGMA. "I think we've gotten to the point now where we have a larger goal -- other than improving our image and beating the smear campaign that has been waged against us in order to shut down our industry here, we're also striving to be among the best factories in the world."

Introduced in December of 1998, the SGMA's Code of Conduct was patterned after a model derived from the Clinton Administration's Apparel Industry Partnership (AIP). The code encompasses high international standards for fair and humane treatment of workers and working conditions; standards for living conditions; fundamental rights of employees; standards for transshipment and country of origin of garments; and compliance and enforcement principles.

When asked to reflect on what they'd learned since the adoption of their code eight months ago, resident managers of Saipan's factories enthusiastically reported that it was a tool for strengthening their relationships with buyers and employees. The document also helped insure compliance with local and federal laws.

"The Code makes the company feel more secure when we're undergoing inspections and monitoring. We're not afraid of the inspectors, because there's a working guideline. We know what we're supposed to do and we're ready," said Frank Camacho of Jin Apparel.

A highlight of the conference was a simulated OSHA inspection of one of the factories, during which conference participants had an opportunity to ask questions of OSHA officials. During his closing remarks at the end of a 2-hour inspection of Top Fashion, OSHA Compliance Officer Jim Wulff congratulated factory representatives on the company's standards and conditions.

"I am impressed with the sincere effort of all the training participants in doing their best to comply with OSHA standards," said Wulff.

The SGMA includes 32 of Saipan's 34 factories. Employing nearly 15,000 people, garment manufacturing is a driving force of the economy of the U.S. Commonwealth of the Northern Mariana Islands -- the only other major industry being tourism. The chain of 14 islands are located in the western Pacific, some 150 miles north of Guam. Although more closely tied to the economy of the Asia, the Northern Marianas are a U.S. territory with a democratically-elected local government.

According to Pierce, a copy of the SGMA Code of Conduct, a membership listing, industry statistics and the latest news from the SGMA will be made accessible worldwide this week as the association launches its new website at www.sgma-saipan.org.