Monday, June 18, 2007


GOVERNOR Benigno R. Fitial told U.S. lawmakers that the 50-cent wage increase will result in the closure of the island’s remaining garment factories. ( BULL #1) Fitial sent a letter before the passage of federal wage hike to Reps. George Miller, D-Ca. Nick J. Rahall, II, Don Young, R-Alaska; Donna M. Christensen, Luis G. Fortuno,
R-PR, and Howard P. McKeon, R-Ca. The governor urged them to support the establishment of a special industry wage review committees before the wage hike measure was enacted. “These industry wage review committees, administered by the U.S. Department of Labor, would have enabled us to demonstrate that there are specific industries in the CNMI that cannot afford additional increases in wage rates without severely affecting their ability to survive in competition with Asian and Latin-American-based companies,” Fitial said. Fifteen garment factories have shut down their operations on Saipan due to their inability to compete with their counterparts in developing countries, which have cheaper labor costs. ( BULL #2) Fitial said the 50-cent wage increase is tantamount to a 17 percent increase on the factories’ personnel cost. “The CNMI’s apparel manufacturing plants employ the majority of minimum wage earners in the commonwealth. Both apparel associations have recently advised that the recently proposed 50-cent per hour increase would represent a 17 percent increase in wages that would force them to close their remaining operations,” ( BULL #3) Fitial, a former garment executive, told the U.S. lawmakers.
Lets address this: Bull #1... These garment factories were already closing down, had nothing to do with the wage still to be enacted. You could cut the wage by .50 cents and they would still close. Next: Bull #2... These factories are already done, kaput, nothing to do with wages at all.
Bull # 3 the same as #1, repeated... Does he really think people are that stupid? .......GED........

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