Labour Behind the Label | Labour Behind the Label

Re: PT Kizone (Indonesia): Outstanding severance payments

I am writing to you to share my deep concerns regarding the payment of money owed to workers at your former Indonesian supplier, PT Kizone.

I understand from Labour Behind the Label that PT Kizone in Indonesia closed in April 2011 after the owner fled the country. This has left 2800 workers without employment and owed US$3.4 million in severance entitlement. They are unlikely to be able to claim this money through any legal process.

As a long standing buyer at PT Kizone adidas had responsibility for ensuring the factory was operating in a manner that was compliant with Indonesian law, international labour standards and adidas' own code of conduct. It is clear that adidas failed to do so as no funds to pay the workers’ severance were available. Therefore adidas now has responsibility for rectifying these violations and ensuring workers are provided with the severance pay to which they are legally entitled. Other buyers from the factory have now paid a total of US$ 1.6 million towards these debts, but adidas have so far refused to contribute. I am therefore calling on adidas to pay the remaining US$ 1.8 million plus interest to former PT Kizone workers.

PT Kizone workers have spent many years producing goods for adidas and deserve to have their rights respected. As a consumer I am interested in the working conditions provided at your production sites. I therefore urge you to:

pay the workers the outstanding US$ 1.8 million severance payments including interest;
    to offer the unemployed former-PT Kizone workers jobs at the same contractual conditions and not to discriminate against anybody because of age, demands made to adidas or other criteria; these jobs must be close to their homes to avoid tearing families apart;
    to engage positively in this process with the union representing the majority of the workers, DPC SPSI TSK;
    to act in accordance with the principle of due diligence in the future employment of these and other workers.

Yours sincerely

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