Free zone dismissals
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 [...]
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