Lululemon supplier terminates 500 Philippine workers during Christmas

Although the company paid one month's wages in lieu of notice, severance pay and prorated 13th-month pay and coordinated with other freeport employers and the Department of Labor and Employment (DOLE) on re-hiring activities, the union TF2 said the severance pay was inappropriate, as it amounted to only 50 per cent of the agreed amount. TF2 also said the closure could be an act of union busting in disguise.

TF2 representative Laudicia Casana says:

"The closure has resulted in serious economic and psychological impacts on workers and their families. DOLE, Lululemon and the Clothing, Textile Industry Tripartite Council (CTITC) should convene a thorough investigation. The closure is tantamount to the abolition of the sole and exclusive bargaining agent (SEBA) union, which constitutes an unfair labour practice under the Philippine Labour Code and must not be tolerated."

Members of the IndustriALL Global Union affiliate TF2-FFW Kilos Damit at the factory said they were shocked by the announcement. TF2 expressed deep regret over what it described as an inconsiderate decision, noting that the employer did not engage the union in social dialogue over such an important management decision.

In 2021, the company cited the Covid-19 pandemic as justification for placing more than 100 workers on indefinite unpaid leave. It also delayed the collective bargaining process and dismissed eight union leaders from the Charter Link Inc Employees Union (CLIEU-FFW). Following the intervention of IndustriALL, Lululemon and the labour court, the eight union leaders were reinstated.

In a letter to the Department of Labor and Employment, IndustriALL general secretary Atle Høie urged the Philippine government to conduct a full and transparent investigation into the closure of Charter Link Clark, including verification of the reasons given by the company.

"The government must ensure full compliance with the collective bargaining agreement and all applicable labour laws. Should the company resume operations under the same or a different name, and in the same or a different location, we strongly request that affected workers be given priority in recall and re-employment, in line with Philippine labour standards and principles of fair labour practice,"

Atle Høie added.

Photo: Wikimedia Commons (CC0)