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Philippines: 4000+ garment workers laid off in economic zone due to reduced orders from buyers amid COVID-19; Incl. company responses

In September 2020, approximately 4,420 garment workers at Sports City International factories and 200 workers at Yuenthai factory were laid off in the Mactan Economic Zone in the Philippines.

The manufacturers have cited reductions in orders from buyers during the COVID-19 pandemic, however labour groups say the layoffs were made without adequate communication with workers or clear criteria and are calling for a halt on terminations, and clearly communicated policies on how terminations will be undertaken and for those to be done with an open dialogue with workers without risk of retaliation.

According to publicly available supplier information, adidas, lululemon, Under Armour and Saucony are buyers from facilities operated by Sports City International, while adidas is also a buyer from Yuenthai factory.

Business & Human Rights Resource Centre invited Sports City, adidas, lululemon, Under Armour and Saucony to respond. The responses from adidas, lululemon, Sports City and Under Armour are included below. Saucony did not respond.

Company Responses

adidas View Response
Lululemon Athletica View Response
Sports City International Philippines View Response
Saucony

No Response

Under Armour View Response

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