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View Full Version : More firings in free zones



NewsWhore
12-13-2006, 02:50 PM
Fesurno workers union in Santiago says that another 20,000 workers will be fired this Christmas in local manufacturing parks. As reported in Hoy newspaper, he attributes the dismissals to high operating costs, primarily when it comes to labor and electricity, and the effect of the phasing out of the Multi-fiber Agreement and the elimination of quotas in January 2005.
Local apparel production has been hurting because increasing Dominican labor costs cannot compete with Asian labor costs. In reality, free zone apparel jobs have only increased in Honduras and Nicaragua, both of which offer low cost labor. El Salvador, already a beneficiary of DR-CAFTA, has also seen a significant decline in apparel jobs, as contract work has migrated to Asia. Haiti could garner these jobs, if the Haitian business sector could guarantee stable working conditions, given that labor costs in Haiti could be competitive with Asia.

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