Philippines: Manufacturers attribute retrenchment to reduction of clients' orders
Summary
Date Reported: 29 Sep 2022
Location: Philippines
Companies
Gymshark - Former buyer , Mactan Apparel Inc. - Supplier , adidas - Former buyer , Lululemon Athletica - Buyer , Under Armour - BuyerAffected
Total individuals affected: Number unknown
Workers: ( Number unknown - Location unknown , Clothing & textile , Gender not reported )Issues
Purchasing practices: Order volume , Impacts on LivelihoodsResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: Mactan Apparels allegedly supplies to adidas, Gymshark, Lululemon and Under Armour; adidas, Gymshark and Lululemon provided a response to a request for comment from the Resource Centre. adidas stated its relationship with the factory ended in February 2024 and Gymshark stated it had sourced from the factory from 2020 to April 2023. Lululemon stated it had continued to source through Mactan Apparel's parent company Sports City. Under Armour did not respond.
Source type: News outlet
Summary
Date Reported: 29 Sep 2022
Location: Philippines
Companies
Gymshark - Former buyer , Metro Wear - Supplier , adidas - Former buyer , Lululemon Athletica - Buyer , Under Armour - BuyerAffected
Total individuals affected: Number unknown
Workers: ( Number unknown - Location unknown , Clothing & textile , Gender not reported )Issues
Purchasing practices: Order volume , Impacts on LivelihoodsResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: Metro Wear allegedly supplies to adidas, Gymshark, Lululemon and Under Armour; adidas, Gymshark and Lululemon provided a response to a request for comment from the Resource Centre. adidas stated its relationship with the factory ended in February 2024 and Gymshark stated it had sourced from the factory from 2020 to April 2023. Under Armour did not respond.
Source type: News outlet
Summary
Date Reported: 29 Sep 2022
Location: Philippines
Companies
Globalwear Manufacturing - Supplier , Under Armour - BuyerAffected
Total individuals affected: Number unknown
Workers: ( Number unknown - Location unknown , Clothing & textile , Gender not reported )Issues
Purchasing practices: Order volume , Impacts on LivelihoodsResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: Globalwear Manufacturing allegedly supplies to Under Armour; Under Armour did not provide a response to a request for comment from the Resource Centre.
Source type: News outlet
Summary
Date Reported: 29 Sep 2022
Location: Philippines
Companies
Gymshark - Former buyer , Nike - Buyer , Feeder Apparel Corporation - Supplier , adidas - Former buyer , Under Armour - BuyerAffected
Total individuals affected: Number unknown
Workers: ( Number unknown - Location unknown , Clothing & textile , Gender not reported )Issues
Purchasing practices: Order volume , Impacts on LivelihoodsResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: Feeder Apparel Corporation allegedly supplies to adidas, Under Armour, Nike and Gymshark; adidas and Gymshark provided a response to a request for comment from the Resource Centre. adidas stated its relationship with the factory ended in February 2024 and Gymshark stated it had sourced from the factory from 2020 to April 2023. Under Armour did not respond.
Source type: News outlet
Summary
Date Reported: 29 Sep 2022
Location: Philippines
Companies
Vertex One Apparel Philippines - Supplier , Under Armour - BuyerAffected
Total individuals affected: Number unknown
Workers: ( Number unknown - Location unknown , Clothing & textile , Gender not reported )Issues
Impacts on Livelihoods , Purchasing practices: Order volumeResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: Vertex One Apparel Philippines allegedly supplies to Under Armour; Under Armour did not provide a response to a request for comment from the Resource Centre.
Source type: News outlet
"4,000 workers from 5 MEPZ firms lose jobs", 29 September 2022
Around 4,000 workers from five locators of Mactan Export Processing Zone (MEPZ) in Lapu-Lapu City, which engaged in manufacturing clothes have lost their jobs after they were retrenched by these firms.
In their official statement, the five MEPZ firms explained that the downsizing of workers was needed since the world was now on the brink of a global recession.
“As the world is now on the brink of global recession, with higher than expected inflation and the global financial conditions are becoming tighter, our business and that of our customers are not an exemption especially being classified as a non-essential luxury product,” read their statement.
Among the locators, who implemented a retrenchment program, were Mactan Apparels, Inc.; Metro Wear, Inc; Globalwear Manufacturing, Inc.; Feeder Apparel Corporation; and Vertex OOne Apparel Phils. Inc.
The locators also explained that their financial health was also affected by the COVID-19 pandemic, the onslaught of super typhoon Odette, supply chain issues, increasing gas prices, and the conflict war between Russia and Ukraine, which has resulted in their unstable operations.
“The sudden dropping and reduction of orders from our clients while increasing operational costs left us to face head-on to deal with the economic struggles and financial shortage; thus, our company perceived objectively and in good faith the need to downsize our current manpower through a retrenchment program,” it added.
The retrenchment program will also help to keep their business afloat and continue the employment of 75 percent of their workforce.
The total workforce of the five locators is more than 18,000.
“The affected workers shall receive a separation pay in accordance with the law,” the official statement said, adding that they were grateful to the contributions of those affected workers.
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