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Regional, Western
Observer Reporter  
July 19, 2002

JLP caretaker predicts more job losses in garment sector

WESTERN BUREAU: Jamaica Labour Party (JLP) caretaker for West Central St James Clive Mullings is predicting more job losses at the Montego Bay Freezone, even as the garment industry continues to spiral downwards.

According to a statement from the JLP caretaker, another company at the freezone would soon close its doors, bringing to 2,000 the number of freezone workers to lose jobs in the last six months.

Mullings did not name the company but claimed that its principals were in the process of shifting their focus because of high operational costs, failling sales and a general downturn in the garment manufacturing sector.

His pronouncement comes in the wake of this week’s 350 job cuts at Bike Athletic Jamaica Ltd in the Montego Bay Freezone.

Reports are that Bike Athletic, which manufactures clothing for sports clubs in the United States, has been operating at a loss since the September 11 terrorist attacks on the US and has been unable to get any assistance from government to make a comeback.

Mullings argued that if companies like Bike Athletic are to survive then it was critical that they receive financial and other aid from government.

“Most of the remaining garment companies in the Montego Bay Freezone are now experiencing problems in their operations, arising from last year’s terrorist action in the US. And (they) are, therefore, in need of assistance, financial and otherwise to prevent a total shut-down of the sector,” the JLP candidate said.

“Minister of Commerce and Technology, Phillip Paulwell was already alerted of this situation and urged to respond in a meaningful way. However, he has done nothing, much to the demise of the garment sector… the announcement of the closure of the Bike Athletic factory came as no surprise as the company is a victim of this situation,” Mullings added.

Two weeks ago, the Hart Group of companies laid off 80 workers but disclosed that it had sought assistance from the government in an effort to prevent further job cuts. CEO Tony Hart also pointed to the information technology sector as a potential avenue into which they would expand and indicated that they were in discussions with a team of potential investors.

In his release, Mullings said it was critical that Jampro step in and ensure that that proposed venture gets off the ground.

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