Why won't adidas pay up?

adidas claim that they have no responsibility to these workers as the last adidas product was completed in November 2010, prior to the closure of the factory. Yet severance pay is accrued over the whole period of employment. Therefore the workers are entitled to receive money earned over the several years of adidas’ production.

adidas also say they cannot assume responsibility for breaches of law committed by their supplier. Yet adidas do have responsibility for ensuring that all of the standards enshrined in local law, international conventions and their own codes are met. This is the principle behind corporate responsibility.

Therefore adidas need to take steps to ensure all labour rights violations, including the failure to pay monies owed to workers following illegal closure, are rectified. This means directly paying severance pay if it is not possible to get payments from the owner or the courts. So why do adidas continue to refuse to take action?

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One thing is certain. It’s not because they can't afford it. At the end of 2011 adidas recorded a 18% increase in company profits. They managed to pull together the £ 100 million pounds needed to become the main sponsors of this year’s Olympic Games. In fact when it comes to paying individuals to wear their goods adidas has no problem finding the cash. In the run up to both the London Olympics and the European Football Championship adidas is battling it out with its competitors to snap up sponsorship of the medal hopefuls, such as the deal signed recently with British athlete Jennifer Ennis, working out at more than half a million dollars.

Yet for those at the other end of the chain money is not available. Despite years of work these men and women are now forced to borrow money, sell land or houses and use up any savings they might have built up just to survive. As the Olympics approaches we call on adidas to step up its game on workers’ rights and make sure the PT Kizone workers get the deal they deserve.

Tell adidas to step up their game on workers rights! Take action now!

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Labour Behind The Label

Why won't adidas pay up?

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