"Labor NGO urges Nike supplier to ensure workers’ rights after Cebu factory closure" 17 March 2026

CEBU – Garment workers in Cebu face possible unemployment after Pan-Phil Sportswear Inc., a factory inside the Mactan Export Processing Zone (MEPZ), ceased operations on Saturday, March 14, 2026.

The factory, which employs hundreds of workers, operates as a subcontractor of Sports City International and manufactures sports apparel for the international brand Nike, according to labor monitors and worker accounts.

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Several Pan-Phil employees said they were not informed beforehand of any serious structural or operational problems that would justify the sudden closure. For many workers, the announcement came abruptly, heightening fears of job loss and financial instability.

Management reportedly told workers they might be transferred to Alston Apparel Inc., another factory in the area. However, employees said the company has not presented any written agreement guaranteeing their absorption, leaving the possibility uncertain.

According to Cebu-based Visayas Human Development Agency, Inc. (VIHDA), workers also alleged that some employees were advised not to discuss their situation publicly and were warned that doing so might affect their chances of being accepted by the other factory...

“The closure of Pan-Phil Sportswear Inc. reflects broader labor precarity within subcontracting networks operating in the Mactan Export Processing Zone,” VIHDA said in a statement.

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