NewsWhore
12-15-2008, 01:10 PM
Jose Torres, director of the National Association of Free Zones has confirmed that thousands of industrial free zone workers are being let go as a consequence of reduced contracting by US apparel companies. The dismissals primarily affect free zones in Santiago, La Vega and Moca in the north of the country. Behind it all is a slump in US clothing sales. The slump comes at a time when DR exports were already losing competitiveness due to high production costs in the DR, such as expensive power and rising labor costs. Torres said that the government needed to declare exporting as a national priority, and take action to strengthen the export sector.
Grupo M president Fernando Capellan said that the company had made severance payments to 2,700 employees out of a payroll of 11,300. Grupo M is the country's largest free zone consortium.
"The export sector is going through some very difficult times and unless policy decisions are taken that modify the current framework, the job losses could continue in other spheres of the industry," said Capellan. Grupo M is one of the most vertically integrated conglomerates in the Dominican industrial scene.
Listin Diario had reported that Grupo M alone had dismissed 4,000 employees working at several plants and offices in the DR and Haiti.
According to the newspaper, with the December job losses, an estimated 30,000 workers have lost their jobs in the free zone industries this year. Of those dismissed, 3,000 worked in the DR and 1,000 at the sister company in Haiti. All the affected workers have received their severance payments.
More... (http://www.dr1.com/index.html#10)
Grupo M president Fernando Capellan said that the company had made severance payments to 2,700 employees out of a payroll of 11,300. Grupo M is the country's largest free zone consortium.
"The export sector is going through some very difficult times and unless policy decisions are taken that modify the current framework, the job losses could continue in other spheres of the industry," said Capellan. Grupo M is one of the most vertically integrated conglomerates in the Dominican industrial scene.
Listin Diario had reported that Grupo M alone had dismissed 4,000 employees working at several plants and offices in the DR and Haiti.
According to the newspaper, with the December job losses, an estimated 30,000 workers have lost their jobs in the free zone industries this year. Of those dismissed, 3,000 worked in the DR and 1,000 at the sister company in Haiti. All the affected workers have received their severance payments.
More... (http://www.dr1.com/index.html#10)