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Govt closes two clothing units. 1,500 loose jobs
23
Sep '10
Two more textile plants were shut down in the La Vega Free Zone Industrial Park of the Northern part of Dominican Republic and this has led to the sacking of 1,500 employees.

The La Vega Free Zone Association stated that, several companies will shut down their units and sack thousands of employees in the coming days.

The two companies which were shut down were the F&J Textile Industry I and II. Both these companies had been functioning for over five years in La Vega.

The association also informed that the decision of shutting down these two plants was taken by Proindustria, due to the outstanding arrears on rent, these two plants owed to Proindustria.

Most of the businesses are unable to pay the rents because of the shutting down of their units or due to the small production orders which they are receiving.

The association members of La Vega, took this decision of Proindustria, as an act of harassment, against these two companies.

According to the La Vega businessmen, the process of shutting down at a time when the plant was fully operational, in the presence of armed personnel. All the equipment and goods which belonged to the foreign clients of the company were seized by them.

The association pointed out that the step taken by Proindustria was against the tenets of the Free Trade Agreement, which the country has signed with United States.

They appealed to President Leonel Fernandez to meet the concerned people and discuss the problem which has put to risk, employment of thousands of workers.

Fibre2fashion News Desk - India


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