New Holland Apparel, which produces Under Armour and Adidas branded apparel, will close operations on May 28. CNZF, Mitrab and DGA will monitor the process
The New Holland apparel company, which mainly produces sportswear for the Under Armour and Adidas brands, announced that it has decided to close operations on May 28, which means that the last 1,200 workers still working there will be unemployed.
When the government and society decided to restrict their homes to their own homes in an attempt to reduce the SARS-CoV-2 virus infection rate, the global health crisis not only stopped the global supply chain, but also prevented international trade, which led to covid-19 , Forcing many companies to close down, and leading to an increase in unemployment.
Roberto González, Secretary-General of Central Sandinista de Trabajadores (CST), confirmed the closure in a press conference, which he attributed to Nicaragua The Nicaragua Textile Association and Clothing Industry (Anitec) asserted that “this is an announced decision”.
Reasons for the closure of New Holland Apparel
Garcia to Top secret The company was severely affected by the health crisis, and although it tried to change its operating plan for the production of personal protective equipment, “re-conversion is a difficult and very complicated process”, which increased its problems to the extent that Nicaragua, Honduras and North Carolina (United States) closed.
Plants in Oregon, Texas, Virginia, and Pennsylvania also operate in the country, with its headquarters in Atlanta (Georgia), a total of 1,0001 employees, and its plants in El Salvador, Honduras and Nicaragua.
The decision to suspend business occurred gradually, so the company gradually reduced its operations in order to “save costs.” This fact indicates that 1,200 of the 3,000 workers in the Tipitapa factory are still employed.
García denied that the local socio-political crisis had an impact on the decision to close the company, noting that “the company has been operating well since 2018, with ups and downs until its main customer, Under Armour, decided to withdraw from Latin America.” To the Asian continent, where they must face lower costs.
The decision was to close work at the Centro Textil SA (Centex) plant owned by Honduras Grupo Beta, which ceased operations in Chinandega in 2019. Although the balance is neutral, hundreds of people are still unemployed because the Canadian Gildan plant, which was closed in Honduras, was installed in the same industrial park shortly thereafter and was affected by the flooding caused by the hurricane in November 2020.
Recently, Astro Packing Solution, which operates warehouses in the same industrial park as New Holland Apparel, announced its closure, resulting in the unemployment of 500 workers. The company is not in the free zone system, but in the general system because it serves the domestic market.
Unionists allege imperialist conspiracy
CST’s González said at a press conference: “Since last year, this company has put pressure on our workers and unions to lie to them to reach a reduction agreement with a maximum reduction of 50%. .. The result of reducing purchase orders sent to the international market (mainly the United States)”.
He said: “At the time, they wanted to perform in the context of the celebration on July 19,” he emphasized, “Before celebrating May 1, Day, the decision to end May 28 is a bad decision. Signal. The Workers’ International Organization is a product of the blockade caused by international pressure within the framework of the movement, undermining the economy and seriously affecting our country’s employment.” It sent an unfavorable signal before May 1 and shared this signal 28 days later.
He believes that the announcement took place within the framework of the “coup planners” demanding economic sanctions, which is highly doubtful.
He shouted: “In order to protect foreign investment, we will continue to endanger and sacrifice employment in the free zone regime and the socio-economic and working conditions of workers. We will not continue to allow and accept this story.” He shouted and invited us. Take the following actions: sit at the dialogue and negotiation table, find a “consistent solution”, and ask the government to “protect and protect the rights of workers.”
Gonzalez said that they will hold a meeting in the company’s factory, “All workers are threatened with dismissal… We will continue to defend the employment of workers, the current collective agreement, and require Tegra Internacional and New Holland to pay this fee. The collective agreement, because it corresponds to the law.”
In any case, the closure will be easier than the union leaders predicted.
García explained that the procedure is designed to enable the company to notify the National Committee of the Free Trade Zone and the Ministry of Labor, which is responsible for monitoring whether the personnel received the correct salary and a complete final solution; the General Administration of Customs conducts an audit in accordance with the law to close the case.
Garcia from Anitec said: “People will leave at all costs.” He clarified that the company’s current agreement “is one of the best in the entire free zone. It is one of the most demanding. Tegra) Under Armour and Under Armour are very jealous of labor rights. Neither they nor Adidas work in factories with labor problems.
The loss of 1,200 jobs will affect the goal of 128,000 employees in the free trade zone in 2021 (the highest in our history). Garcia said: “Although we are waiting for the expansion of several factories, we rarely create new job opportunities this year.” The goal is to add 3,000 jobs from the 125,000 jobs started at the beginning of the year. Now, although the numbers are still under review, they expect to close at 127,000.