Faremo garment closure, a “runaway shop”

MANILA, Philippines — It is not true that the Faremo International Inc. closure last October of 2016 was due to the gradual decrease of their profits.

Jessel Autida, President of the Faremo Workers Union said the company’s rationale was a total lie.

The truth behind the story, claimed Autida, is that the management intentionally shut down the company so they can crush and terminate nearly 1,000 regular employees and members of the union.

Malinaw na isang union busting ang ginawa ng Faremo management. Paglabag sa labor code at isang klarong harassment sa mga manggagawa,” Autida explained.

[It is clear that the action of Faremo management is a form of union busting. A violation of our labor code and clear harassment of workers]


Audita added that the claimes of Faremo management are all fabricated. Based on their major client’s statement like the global garments brand GAP, their product purchases of Faremo garments last year has increased.

“Gap made public their statement last November, this after the International Labor Rights Groups that are waging a solidarity campaign for Faremo workers inquire with them,” Audita elaborate.

Audita clarifies that their action from the time the Faremo management decided to shut down the company last October is not a strike. He said it is a picket to ensure that Faremo management could not pull out all their equipment and transfer it to their new office.


“And tawag sa ganitong taktika ay runaway shop, ibig sabihin, palalabasin ng management na lugi sila at magsasara tapos itatayo ulit nila ang kumpanya na nakarehistro na sa ibang pangalan pero parehas pa rin ang may-ari,” Audita said.

[We call these tactics of the management as “runaway shop”, meaning, the management will declare bankruptcy so they can easily shut down the company and transfer it to another place with new company name but with the same owner]

Faremo International Inc., is owned and operated by Korean Multinational Hansoll and it is located in Philippine Economic Zone Authority (PEZA) in Rosario, Cavite.

“Faremo’s action is a clear violation of an agreement during the mediation that was called and handled by the National Conciliation and Mediation Board and also of the PEZA board resolution,” Autida added.


Meanwhile, Hansoll released a statement on 17 November 2016 denying the allegation of the union.

“…Hansoll also wants to make it clear that there is no basis for any claim that the decision to close the factory has any connection to the FIIWA Union of Faremo, the Collective Bargaining Agreement (CBA) that has been signed, or industrial relations at the factory. Our factory management engaged in a number of rounds of negotiations, and reached a collective bargaining agreement in June, 2016 that had been submitted and accepted by the Department of Labor and Employment. Hansoll has a proud record of seeking positive relationships with the unions at its facilities and negotiating CBAs, and Hansoll would never close a plant for other than economic and commercial viability reasons. Any suggestion that we will seek to re-open the plant under different circumstances, including without the existing Union or CBA, are entirely incorrect.” CPM

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