Florexpo indicates excessive paperwork as the main reason behind the decision to close its operations in Costa Rica and move to Guatemala, making 400 employees redundant.
"In Guatemala an import permit seed is processed in two weeks and is effective for one year, while in our country, unfortunately, the process takes four months and the validity of the permit is for a month, this made it impossible to program negotiations and increased business costs by 300%. "
The closure of another maquila center, due to low orders in the world market, means 500 people will be made unemployed.
Oscar Galeano, representing the Chamber of Commerce and Industry of Cortes (CCIC), lamented the closure of this maquila company in the previous week, due to the low level of purchase orders from abroad, reported Proceso Digital.
The rate at which jobs are created in the country has declined in the last nine months.
The sectors that have been affected the most are trade and agriculture, as opposed to the construction sector, which has shown an upturn and is expected to show further growth in the remainder of the year.
The latest business survey carried out by Asies reveals that expectations of a recovery in the second half of 2010 have been postponed to 2011.
In the previous survey from the Association for Investigation and Social Studies (ASIES) the perception was that the Guatemalan economy would recover in the last six months of this year. However, the results of the latest survey cast doubt on this recovery with the main indicators of business activity showing unfavorable behavior relative to the previous study.
From January to August, 63.917 workers have been fired, according to data from the Work Secretary.
The actual figure could be much higher, warned Work Minister Nicolás García, who explained that "... many fired workers do not report to the Ministry, and they settle termination conditions directly with their employers".
Industrias Gabriela is a non-woven textile manufacturing company located in Tegucigalpa, Honduras, Central America.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (504) 229-0072
Our mission is to help you in the process of sourcing your trims and notions for your Full Package programs or your CMT Contracts. And be your local supplier for those trims and notions needed in your programs.
Operates in Nicaragua, Honduras, Guatemala and El Salvador
Phone: (504) 617-0591 - (504) 6170592