"Lululemon supplier accused of ‘Christmas mass firing’", 20 January 2026

Charter Link Clark has come under fire from unions and anti‑poverty campaigners after terminating around 500 workers at its factory in the Philippines during a company Christmas party.

The plant has reportedly supplied...Lululemon and...Tentree.

According to the IndustriALL global union, members of its affiliate TF2–FFW Kilos Damit were told without prior consultation that the factory was closing with immediate effect, and handed termination papers and final pay offers instead of holiday bonuses.

Charter Link cited a three‑year decline in orders and the loss of its primary foreign customer, leaving it with no projected sales for 2026, in a 22nd December letter to employees reported by...BusinessWorld.

While the company says it is paying one month’s wages in lieu of notice, severance pay, pro‑rated 13th‑month pay and the cash value of unused leave, TF2 argues the package amounts to only about half of what was agreed in the collective bargaining agreement.

The union has also warned that closing the factory effectively dissolves the sole and exclusive bargaining agent at the site, which it says could constitute union busting under Philippine labour law.

The shutdown follows years of contention between management and organised labour at Charter Link Clark. In 2021, the company placed more than 100 workers on indefinite unpaid leave and dismissed eight union leaders who were later reinstated after intervention by Lululemon, IndustriALL and the labour courts.

The Federation of Free Workers and the National Anti‑Poverty Commission’s labour council have branded the December closure as “abusive” and a “grave social injustice”, alleging that workers were pressured to sign release forms...

DOLE and the Clark Development Corporation have meanwhile moved to organise a jobs fair and say most of the workers have begun receiving separation pay, as other garment manufacturers in the zone compete to hire experienced staff.

Ecotextile News has approached both Lululemon...and Tentree for comment.