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SANTO DOMINGO.- The heads of Dominican Republic’s major business groups warned Tuesday of the possibility of massive layoffs as the result of the local effects from the global crisis, and demanded lower specific operation costs such as energy and manpower.

The entrepreneurial groups including the Business Council (Conep), the hotels and restaurants grouped in Asonahores, the exporters association Adoexpo, the free zones (Adozona), the business owners grouped in Copardom, and the industrial companies Aird, among others, painted a bleak picture by comparing statistics from regional and other economies to convince the senior editors and economy writers that there’s an urgent need to reduce what they consider the exorbitant cost of manpower.

The presidents of Aird Manuel Diez Cabral, of Copardom Marisol Vicens, of Adozona, Fernando Capellan, of Adoexpo, and Ricardo Koenig, as well as Asonahores vice president Arturo Villanueva proposed a change in the Labor Code which they affirm wouldn’t reduce the worker’s benefits, and instead keep the companies competitive in comparison to the region’s trade partners, and prevent the layoffs they see as inevitable.

However, most of the senior journalists opposed the stance of the business leaders, including Mario Mendez of newspaper Hoy, and the head of Teleantillas TV news Juan Bolivar Diaz, who suggested that the business find alternatives to preserve jobs, specially demanding more from the Government in the areas such as the lowering of taxes.

Vicens said the business leaders invited the journalists to the event, in the restaurant Juan Carlos, “precisely to get a feedback,” and to promote their proposal before the government and other sectors of influence.

However, the Copardom president insisted that while some of the observations by the journalists were valid and would be considered, the urgency of the crisis made it “a situation that the country’s businesses couldn’t sustain any further.”

When asked if they had a Plan B prepared in the event their intiative didn’t find support in Congress, Vicens said they didn’t and that the country would “of course” survive. “Our country will forge on of course, but with its shortcomings, its calamities, and its poverty.”

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COMMENTS
21 comment(s)
Written by: jacirez This user is banned, 31 Mar 2009 4:48 PM
From: Iran, Zähedän
This is a no-win situation: The choice of either lower workers' wage or displace "some" workers could potential have similar catastrophic effects. Especially at a time when the cost of living is expected to increase...I see a bad moon rising...
Written by: brootto, 31 Mar 2009 4:52 PM
From: United States, South West Florida
I know, I read some article about the free zone not been affected by the economic crisis and some other articles about layoff in the free zone. I know is not a relate topic, but it shows that the economic crisis is affecting everything and everyone.
Written by: jacirez This user is banned, 31 Mar 2009 4:54 PM
From: Iran, Zähedän
brootto,

Take away to tourist industry and the "Zonas Francas" and the DR does not have much room to maneuver...This could turn ugly...
Written by: brootto, 31 Mar 2009 4:58 PM
From: United States, South West Florida
Do you think is bad in USA, wait and see DR.
Written by: generoso, 31 Mar 2009 4:59 PM
From: United States, DR
I am all for revising the antiquated and out of sync labor code dating back to 1992 when it was last revised.
I believe that the accrued benefits that the DR workers get over time, that is up to 65% of their actual salary, which is significant, should be revised for both management benefits as well as labors.
But industry captains are also paying very little money to their workers, when you adjust their salary to the cost of living increase, you wonder how they can make ends meet.
It should be a quid pro quo exchange of workers compromising on letting go of some of the future
termination benefits, to get more money in the present.
It will be a hard sell and a very uphill battle or even impossible quest to try to remove the hard earned workers compensation benefits that they have achieved over time.
The Dominican workers "están comiendose un cable" and the owners are enjoying the fruits of their hard labor, giving little in return.
If they say they will go broke, then let them.
Written by: jacirez This user is banned, 31 Mar 2009 5:01 PM
From: Iran, Zähedän
generoso,

I wil spit when I say this: I agree with you.
Now I have to go and shower. I feel dirty....
Written by: antonio1, 31 Mar 2009 5:10 PM
From: Dominican Republic, Av Santa Rosa, La Romana
This is all over; I read that Daniel Ortega was complaining because a industry that manufacture jeans to export to the US under CAFTA-DR was closing and taken away the biggest source of jobs in that country.
Written by: Gringo_1, 31 Mar 2009 5:28 PM
From: Dominican Republic, Maimon (Bonao)
And don't forget the following:

http://www.dominicantoday.com/dr/....ose-Dominican-Labor-Minister-says

The potential for a "Fourteenth Month" salary

Most employers buying private health insurance for all workers because the gov't one is no more than a tax.

Automatic cost of living based on inflation

Mandatory 1 hour break during the day

....And probably others.

Edit: More frequent and violent huelgas which decrease production and increase lost income!
Written by: glomarexplorer, 31 Mar 2009 5:35 PM
From: United States, Fresh Water Paradise-NY Finger Lakes
I am sure this is a sad story with significant consequences for Dominican busisness owners and workers, and I truly hope things will be favourably worked out for all concerned. These are very tough times for everyone, and we've just fired our chairman and CEO yesterday-the man who once led the world's largest automotive corporation.

I can't totally comprehend article's content, even though i've read it more than three times. DT's placement of this wonderful illustration of Dominican feminine beauty on the front is most unfair and distracting to most of us men. However, at the risk of sounding shallow, let me say that I've really appreciated it. Thanks DT.
Written by: Gringo_1, 31 Mar 2009 5:39 PM
From: Dominican Republic, Maimon (Bonao)
I think what is saying that the business climate here is spiraling downward out of control. Or at least, that is what they want you to think.
Written by: USADR, 31 Mar 2009 6:22 PM
From: United States
On a lighter note that lady pictured looks very good.
Written by: generoso, 31 Mar 2009 6:26 PM
From: United States, DR
USADR
She looks much better in persona, believe me, deep blue eyes, great figure, strong voice.
Momma mia!
Written by: chillaxin201 This user is banned, 31 Mar 2009 7:32 PM
From: Dominican Republic, Boycott Dominican Tourism
This to me some ups to all lies!!!
1st of all if you are not selling as much, then there I no need to produce as much. And this to me means they “the companies” would have fired the workers days ago.

They want to cut there wages, benefits and ask the government for lower taxes.
Well this sounds to me like they just want to maximize their profits. And jerk the Dominicans in the process.

WHAT EVER HAPPENED TO BULLETPROOF ECONOMY LF?

Written by: Username, 31 Mar 2009 8:33 PM
From: Dominican Republic
Do away with the "liquidations" . Those unreasonable liquidations are a terrible burden not just on the business owner, but on the worker who because of them doesn't get hired in the first place.

.
Written by: USADR, 31 Mar 2009 9:03 PM
From: United States
Written by: generoso, 31 Mar 2009 6:26 PM
From: United States
USADR
She looks much better in persona, believe me, deep blue eyes, great figure, strong voice.
Momma mia!
__________________________________________________________________________

generoso,
She is definitely a lovely sight. I wonder who's the lucky guy that was able to land her.
Written by: BASTA, 31 Mar 2009 9:09 PM
From: Dominican Republic, =Ghetto/Legalize Drugs
WHAT EVER HAPPENED TO BULLETPROOF ECONOMY LF? It is, I have 1500 more cousins and friends to hire.
Written by: letroudeballeGeneroso This user is banned, 31 Mar 2009 9:55 PM
From: Dominican Republic
Let me get this straight: Global markets are shrinking (lower demand and higher protectionism) and because of our parasitic dependency with the world, our local producers and manufacturers want cheaper fuel costs (pardon me they didn't mentioned oil) and lower minimum salaries? In other words, if they can hire illegal aliens (cheaper) they will!

So somehow the Government (the Key) must violate supply and demand laws so as to keep these environmental and social abusers in business! This bribery of using one crisis to impose a second one or to give an ultimatum so as to obtain objectives that otherwise will not be attain under normal circumstances IS FREAKING OLD! NO MORE THREATS!

Learn to live like the rest of society is doing! SACRIFICE, DISCIPLINE, MODERATION, and INDEPENDENCE!
Written by: anthonyC, 1 Apr 2009 8:01 AM
From: United States
"Written by: DominicanChic, 31 Mar 2009 9:35 PM
These people need to cut the bullcrap. Workers in DR barely make any money and prices are comparable to those of more developed countries in every industry. Let them go broke, their greedy asses need a wake up call. "

I don't know if you got the memo or not but just in case.

The reason these companies exist is not to provide jobs.

The ONLY reason they exist is to make money.

Sure let them go broke. Then nobody has a job.
Written by: VeronicaDR, 1 Apr 2009 9:34 AM
From: United States
If there wasn't so much corruption and these businesses didn't have to pay such high taxes maybe more could legally operate and make a profit. The fact that our government overspends, is so corrupt its beyond comprehension, and taxes at such high rates makes it almost impossible for any legitimate business to turn a profit.

These days everyone on the island knows the only way your going to make money is by selling drugs or being involved with them. As a legitimate business your more likely to go under than even turn a profit.
Written by: xwill7, 1 Apr 2009 1:01 PM
From: United States, El cuarto bate
xlr,
in this world its eat or be eaten...
Written by: dreadlocks, 1 Apr 2009 3:17 PM
From: United States
well, i thought that Leo said that for the DR economy to fail, the whole world will have to fail first. i am tired of flogging the old, tired horse, but i will. maybe 10 or so interteined falilies own just about everything of worth in the country. go to Santiago, where the same names appear on just about every business; hardware, automobile, farming, construction. these huys have been mire in 17th century modalities forever, and time has passed the DR by. the opportunities have been squandered, because, in the salad days, it was all about a bunch of oligarchs accumulating as much as they could by exploitation and exclusion. i pray that things do not get really ugly here. while the ordinary folks are trying to buy the next platano, the old blood is making multimillion deals with foreign concerns to sell tracts of land that extend as far as the eye can see. tourism is hurting, despite the early bluster, and CAFTA is rewarding us with multimillion dollar trade deficits.it is ugly!
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