The closure of Dos Sportswear in the Esperanza free trade zone, and the firing of 1,400 workers, brings the total of jobs lost in free zone manufacturing plants to almost 20,000 so far this year. Even worse, the community loses the RD$14 million in monthly wages these workers received. According to Pedro Manuel Garcia, the head of the Free Zone Industrial Association of Esperanza, the closure is not due to a lack of demand for their products, but rather to the high costs of production. Garcia said that there is no lack of contracts, but local costs have forced many factories from the market.
Just recently, according to Hoy, the shipping companies have announced a 15% increase in transportation costs, adding to the cost increases that affect export sfree zone operations. Arturo Peguero the president of the national association, ADOZONA, said that his group has on record that 17,000 jobs have been cut so far this year, but he also mentioned the fact that economist Julio Ortega, the President’s economic advisor has set the number at 19,000 jobs lost.