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With regard to recent interest in the operation of our MetroWear Two factory in the Mactan Export Processing Zone, and our relationship with the union at the factory known as the Organization of Metrowear Employees for Empowerment and Genuine Action (OMEGA-PIGLAS), the company would like to provide the following updated information.

First, the company fully respects the decision of the work force to establish a union at the facility pursuant to a lawful certification election. The company respects the right of freedom of association and the right to organize for all workers, and is committed to also adhere to the relevant laws of the Philippines in this regard.

Second, despite some public speculation and press reports, the management of MetroWear Two has committed to the union that the plan for the factory is for it to remain open, and not to close.

Third, based on the request of the union, the company and the union have reached agreement on the reinstatement of five MetroWear Two workers who were previously separated. In addition, the company has agreed with the union to review the current disciplinary procedures with the intention of implementing certain reforms…

Fourth, because of a shortfall in orders currently experienced by the factory, and the forced leave situation that has been notified and approved by the Philippines Department of Labor and Employment and gone into effect at MetroWear Two in June, the company and the union have agreed on the subsidy level to be paid by the company for workers during the forced leave period and the additional contributions that will be made by the company for each worker, covering health care, pensions, sick leave, maternity leave and other such insurance and benefits.

Fifth, despite the forced leave approval required because of a shortfall in near term orders for the factory, several lines continue to operate at the factory, with some additional lines expected to be brought back into production by-mid August. This is consistent with the company’s stated commitment to keep the factory open…

Sixth, the company has reaffirmed the commitment to negotiate a collective bargaining agreement in good faith. In that regard, the company and union have agreed to an accelerated timetable of collective bargaining sessions and revisions …