Adidas calls for action on “unethical” factory closures
04/10/2012
It is clear that the subject of how to provide for workers affected by changes in global supply chains is of importance to the sports and outdoor industry because the idea for the meeting came from adidas, with the German sports brand labelling some factory closures “unethical”. Adidas announced in August that it was closing its only company-owned factory in China.
“Protecting the interests of global workers involved in producing our footwear and apparel is an ongoing priority for the adidas Group,” the company said in an announcement. “We are making headway in leading industry efforts to develop sustainable business solutions that address the systemic root-cause of unethical factory closures around the globe, and protecting workers impacted by them.”
Manufacturers, finance institutions, insurance experts, and other interested parties will take part in the meeting and consider options for a private insurance fund that can be made available to help workers affected by factory closures and non-payment of wages and benefits.
“We work with hundreds of factories in our supply chain every year to ensure fair, healthy and safe working conditions,” the adidas statement continued. “We do this in collaboration with other brands, the Fair Labor Association, governments and regulatory authorities, and civil society groups. We protect the interests of workers because it is critical to our business and because it is the right thing to do.”
As an example, it mentioned the closure of a factory run in Indonesia by a former adidas outsource manufacturing partner, PT Kizone, saying it was sympathetic to the plight of the workers affected by “the unethical closure” of the factory [its owner absconded without paying money owed to workers at the start of 2011]. It has contributed more than $500,000 to a fund to help workers and their families, but has faced widespread criticism from campaign groups for not doing more.
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