Aug 5, 1999
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Aug 5, 1999 |
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539 to lose jobs
MORE THAN 500 workers employed to Gitano of Jamaica, an apparel company in the Garmex Freezone on Marcus Garvey Drive, will lose their jobs this week, following a decision by its parent company, the world-famous Fruit of the Loom, to restructure its operations. The 539 workers were informed yesterday about the decision by Robert Fillingham, an executive of the United States-based parent company. A release from JAMPRO, the Government's promotion agency, said Fruit of the Loom had been involved in a major internal restructuring exercise, laying off more than 16,000 employees in the US and closing 12 plants since 1994. "The closure of the Jamaican plant underlies the company's decision to consolidate its overseas operations in its recently constructed Mexico facility," the release said. JAMPRO added that the company would honour its obligations to the workers, including a $39 million redundancy package. Minister of Industry and Investment Dr. Paul Robertson blamed the closure on Jamaica's inability to offer the advantages to investors that they receive in Mexico, for example, which is a signatory to the North American Free Trade Agreement (NAFTA). "Jamaican Government officials and I myself have been lobbying at almost every meeting held with US businesses and political interests for NAFTA parity," the Minister said in the release. "I know that despite the work we are doing to attract and keep investors, hard-nosed business people faced with declining markets and increased competition will be forced to look at the advantages offered by the NAFTA agreement," he added. Dr. Robertson noted that the Government was working on a plan that takes into account the need to move from the 807-oriented approach in the garment industry to an emphasis on value-added. He said the plan would be the subject of a review next week by Government officials and the players in the apparel industry. |
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