Haiti: a textile company lays off 3,500 employees because of the climate of violence

Textile factory in Haiti (Illustrative image).

ASSOCIATED PRESS - BRENNAN LINSLEY

Text by: RFI Follow

2 mins

Haiti is plunged into a spiral of insecurity and violence.

The effects of this insecurity are devastating.

For example, the textile subcontracting company S&H Global based in the industrial park near Cap Haitien, in the north of the country, announces the dismissal of 3,500 employees because this deleterious socio-political climate is scaring away customers.

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With our correspondent in Port-au-Prince,

The customs strikes, the sudden closures of the border with the Dominican Republic, the takeover of the Port-au-Prince oil terminal by gangs which caused the stoppage of its power plant due to lack of fuel.

All these troubles have, in 2022, paralyzed the exports of the Korean company.

In its information note, S&H explains that its customers in the United States have logically redirected their orders elsewhere, in the Caribbean and Central America, to “ 

”.

Low buyer confidence

The observation is clear, the confidence of buyers in the Haitian market is at its lowest, the activity of the textile factory is decreasing.

The dismissal of workers is therefore inevitable for the company.

A total of 3,500 people will lose their jobs at S&H.

Terrible blow for these thousands of employees, their families and for the economy not only of the northern region but for the whole of Haiti.

Subcontracting factories like S&H are the main source of formal employment there.

The very low minimum wage and generous customs benefits attracted businesses to Haiti, but the gangs and their hold on the territory are beginning to weigh too heavily in the balance against the country.

Note that in recent days, gangs have further increased the number of kidnappings for ransom in the capital, Port-au-Prince.

The province is less affected by these crimes.

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• Haiti

• Employment and Labor

• Social issues