Clark garment firm to shut down, lay off 500

CHARTER LINK Clark, Inc., a garment manufacturer based in the Clark Freeport Zone, has announced its closure, leaving about 500 jobless.

In a Dec. 22 letter to its employees, the company cited a “consistent decline in orders” over the past three years, compounded by the loss of its primary foreign customer, which resulted in zero projected sales for 2026. 

The letter confirmed that all workers would receive severance pay, pro-rated 13^th month pay, conversion of unused leave credits to cash, and one month’s salary in lieu of notice. 

The Federation of Free Workers (FFW) described the timing and manner of the shutdown as “abusive” and “Grinch-like,” after the closure notice was delivered during a Christmas party and allegations that the workers were pressured to sign release forms in the presence of purported government officials.

“If the company’s Christmas party is turned into a meeting to hand out the ‘gift’ of being fired… that’s disrespectful and coercive,” according to Arta Maines, vice-president of FFW’s women’s network.

The company’s planned closure follows earlier legal disputes with union officials, the FFW said. Charter Link previously terminated union officials, who later won their case before the Court of Appeals.

The FFW has called on the Department of Labor and Employment and the Philippine Economic Zone Authority to investigate the closure, ensure due process, and guarantee the lawful payment of all final wages and entitlements.

It added that the abrupt closure casts a shadow over recent positive developments in the investment sphere, including the reported interest of Polish shipbuilder JPP Marine to establish operations in the country.

Jose G. Matula,  FFW president said that while foreign investment is welcome, it must be aligned with a responsible industrial policy that ensures decent work and protects workers both inside and outside economic zones.

“The Philippines cannot be ‘investment-friendly’ while being ‘worker-hostile,’” he said. — Erika Mae P. Sinaking