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14 Nov 2022

Philippines: Factories that supply to global brands allegedly sack about 4,000 workers without social dialogue; companies respond

About 4,000 workers of Sports City in the Mactan Export Processing Zone in Cebu, Philippines were allegedly retrenched without social dialogue. Sports City is the parent company of Mactan Apparels, Inc., Metro Wear, Inc., Globalwear Manufacturing, Inc., Feeder Apparel Corporation, and Vertex One Apparel Phils. Inc. that supplies to global brands such as adidas, lululemon, New Balance, Saucony, and Under Armour.

Media articles report that the subsidiary companies attribute the mass retrenchment to the “sudden dropping and reduction of orders” from clients.

The Business & Human Rights Resource Centre invited the brands to provide information on: (1) a recent or planned change to the volume of orders; and (2) how they are engaging with the suppliers to ensure that appropriate social dialogue and consultation is taking place.

adidas, lululemon, and Under Armour responded. Their responses are linked below. New Balance and Saucony did not respond.

Company Responses

adidas View Response
Under Armour View Response
Lululemon Athletica View Response
Saucony

No Response

New Balance

No Response

Timeline