Five Free Trade Zone companies have applied for temporary suspensions and, with these five, it would be seventeen that have already been affected in the first quarter of the year.
Among the applicants are Arnecom S.A., Clypso Apparel S.A., Santa María, Atlantic and Yutex S.A.
Elnuevodiario.com.ni reported statements by Miguel Ruiz, General Secretary of the Central Workers’ Union, José Benito Escobar: "The committee, made up of representatives of trade unions, entrepreneurs and the Ministry of Labor, met to consider the above-mentioned requests and the closure cases. We are studying the issue of the crisis with at least five companies that are requesting temporary suspensions and personnel reductions, arguing that they do not have purchase orders, so there's no work. This is something that puts the Nicaraguan employment situation in a greater crisis."
Yu Jin is the second textile company closing during the course of 2009 in Nicaragua, leaving at least 500 people unemployed.
Cone Denim textile from the US was the first textile company to formalize its closing when it requested a temporary, 14-month closing at the end of March due to the suspension of orders from United States. The closing sent 800 people to the ranks of the unemployed.
The closing of the U.S. company because of the economic crisis sends 800 workers to the ranks of the unemployed.
The company, which had announced a temporary closing for a couple of weeks, requested a temporary closing of 14 months from the Ministry of Labor.
The Elnuevodiario.com.ni website published: "The board of directors of Cone Denim Nicaragua, located in Ciudad Sandino, confirmed the information through a press release in which they explained that the decision to close operations in the country was made due to the global economic crisis and the slowdown in the supply chain."