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20 Jul 2023

Partido Manggagawa

Philippines: More than 4,000 workers lost jobs due to factory closures in Cebu's export processing zone

"Ahead of SONA, labor group slams factory closures at Mactan Export Processing Zone", 20 July 2023

The labor group Partido Manggagawa (PM) slammed the retrenchment of some 4,100 workers at Mactan Apparel Inc. and its satellite companies. “These are factory closures, not just mass layoffs. Even though the economy is growing, workers are suffering. More than 4,000 breadwinners have lost their jobs and their families will now have to deal with all the difficulties of joblessness,” declared Dennis Derige, spokesperson of the Cebu chapter of PM.


Mactan Apparel Inc. and its sister companies, MAI Printing and FIT printing are closing down. The three factories make sportswear exclusively for the global brand Adidas and is part of the Sports City conglomerate, which is the biggest employer in the Mactan Export Processing Zone. The retrenchment at Mactan Apparel is the third wave of mass layoffs at Sports City. Some 4,000 workers were laid off across the different Sports City garment factories in September 2022 and another 4,000 in September 2020 at the height of the pandemic.

“We call on global brand Adidas to explain why their supplier factories are closing down. Adidas should step up, be transparent and clarify to workers who made their sportswear why they are losing their jobs. Do not make the usual alibi for not doing anything that your supplier is complying with the minimum standards set by law. If Adidas is indeed a good corporate citizen, then it must exercise responsibility for the loss of livelihood of 4,000 workers,” insisted Derige.