The Visayas Human Development Agency (VIHDA) assailed the relentless layoffs and violations of labor rights by companies under Sports City International inside the Mactan Export Processing Zone (MEPZ) in Lapu-Lapu City, Cebu. Sports City International is a garments company that supplies products for expensive and famous American brands.

Pan-Phil Sportswear Inc suddenly announced on March 14 the closure of its MEPZ factory, shocking its hundreds of workers who said the company did not inform them beforehand of any problems in the factory structure that would justify the abrupt closure. Pan-Phil Sportswear produces sportswear for international brands like Nike.

Management informed workers that they would be transfered to another factory, but failed to present any written agreement, deeply distressing the workers with the threat of losing their jobs. Many of them have been working in the factory for years.

The company also warned workers against consulting or speaking to others about their case, threatening anyone who would expose the company’s status. This warning worsened their fear and prevented workers from getting proper advice about their rights.

“The closure of Pan-Phil Sportswear Inc. reflects broader labor precarity within subcontracting networks operating in the Mactan Export Processing Zone (MEPZ),” VIHDA stated. “Under labor-flexibility schemes practiced by large subcontracting conglomerates such as Sports City International, production is frequently shifted across factories depending on global orders and buyer demands.”

According to the group, this arrangement results in job insecurity, while the workers’ labor power is squeezed for maximum profit.

Meanwhile, VIHDA also reported widespread violations of labor rights in Metro Wear, another company under Sports City International, a multinational company mainly based in Taiwan. The company placed around 1,500 workers on forced leave in July 2025 after overstretching their labor during peak production season in the last quarter of the year. Metro Wear manufactures garments for big American companies like Lululemon and Victoria’s Secret.

According to VIHDA, 1,500 workers were placed on “forced leave” in July 2025, after intense production to meet the quotas set by the company. The company offered “early retirement” in October 2025 to reduce regular workers. Amid job uncertainty, 500 workers accepted the offer. An additional 300 accepted the early retirement offer at the start of January.

In this regard, the Center for Trade Union and Human Rights (CTUHR) condemned the company’s practice of squeezing workers dry and then practically terminating them afterwards. Workers received no wages while on forced leave and rely solely on a ₱125-per-day subsidy.

“The ups and downs of the garment industry are not new, that’s why various groups have been calling on brands to carry out particular measures to protect labor rights,” CTUHR executive director Kamz Deligente said. Metro Wear should be capable of implementing such measures because it supplies well-known brands that sell expensive garments.

“Victoria’s Secret, Lululemon and other brands serviced by Metro Wear should ensure that their factories are upholding and respecting labor rights,” Deligente said.