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View Full Version : ADOZONA urges labor code revision



NewsWhore
02-03-2009, 05:10 PM
The president and vice-president of the Dominican Free Zones Association (ADOZONA) is asking for an urgent modification of the Labor Code as a way of sending signals to investors that there is at least an intention to save jobs in this country. Fernando Capellan and Jose Manuel Torres revealed that several international businesses from the sector have told Adozona that they are experiencing problems due to the lack of flexibility in the Labor Code. During the Economic Breakfast meeting with media group Multimedios del Caribe, the executives emphasized that this code is affecting the sector's development and halting the creation of new jobs.
Capellan referred to the fact that "they (legislators) should not change the basic idea but rather the form of several articles of the Labor Code" because they are stalling development and job creation. The articles that should be modified include no. 539 that says that labor decrees are to be carried out on the third day after notification, except in cases where the business in question deposits a guarantee in a bank worth twice the amount decreed by the court. Capellan said that there is currently no opportunity for management and the employee to come to any sort of agreement since the lawyers avoid this. He also called for the modification of articles 80, 86, 147, 537 and 480 of the code. He said that there is currently a deflationary pressure on pricing.
He pointed out, "Production orders, besides being rare, come with a number of additional requirements and at lower prices which is forcing the business to an internal readjustment, digging deeper than ever before to improve production and quality levels."
Capellan also called for a readjustment of Law 890, which is the framework for the Industrial Free Zones, in order to modify it so that it takes DR-CAFTA requirements and new international trade structures into consideration.
He pointed out that the social costs of employees' salaries are 27.8% to 34.69% higher than the competition in Central America.

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