Adidas - Criticism - Sweatshops and Labor Rights Violations

Sweatshops and Labor Rights Violations

Adidas has been criticized for operating sweatshops, particularly in Indonesia. Between 2006 and 2007, Adidas rejected many of its suppliers that supported unions for subcontractors with less reputable labor rights records. By subcontracting work to different suppliers, it is more difficult for Adidas to ensure company labor standards are enforced. Workplace standards that Adidas' policy upholds include the freedom for workers to take part in collective bargaining and a non-retaliation policy towards workers who express concerns. In practice, however, many of Adidas' suppliers have not upheld these standards. At the Panarub factory in Java, 33 workers were fired after striking for better pay in 2005. PT Kizone is another Indonesian factory where Adidas has received criticism over treatment of workers. They produced products for Adidas as well as Nike and the Dallas Cowboys until they closed recently in January 2011. Laid off were 2,686 workers, who are owed $3 million in severance pay and benefits. Nike has contributed $1.5 million but Adidas has not acted. A campaign has been initiated by United Students Against Sweatshops calling for universities to cut contracts with Adidas.On 16 July 2012, War on Want organised activists in London to replace Adidas price tags in sports stores with 34p ones, a reference to the low hourly wage rate paid to the Indonesian workers who make Adidas goods. The campaign group Labour Behind the Label claimed that the basic pay of Indonesian Adidas workers was only £10 a week. William Anderson, head of social and environmental affairs for the Asia Pacific region, posted an entry on the company blog in which he sought to justify the 34p an hour pay rate.