Philippines: 4,100 workers lost jobs due to closure of factories that supply to adidas; incl. cos. responses
About 4,100 workers lost their jobs in Mactan Economic Zone in Cebu due to the closure of two factories of Mactan Apparel Inc. and First Glory Philippines Inc. The companies attribute the closures to high production and logistics costs. Mactan Apparel and First Glory are part of the Sports City International conglomerate, which supply to global brand adidas. Labour group Partido Manggagawa criticised the retrenchment of workers as it subjected them to the "difficulties of joblessness".
In a related media report, it was stated that an apparel brand is diverting orders from the Philippines to Vietnam due to a free trade agreement with the European Union. The decision affected about six to eight thousand workers in the Philippines.
The Business & Human Rights Resource Centre invited Sports City and adidas to respond. Their responses are linked below.