Adidas claim to support workers’ rights but at the same time the company wants high quality, fast, flexible and cheap production. This forces factories to choose between business and workers' rights. Workers at Panarub, Spotec and PT Don Joe, all adidas or former adidas suppliers have been paying the price.

Panurub: Sacked after fighting for better pay

The Panarub factory, located near Indonesia's capital Jakarta, employs more than 10,000 workers, mostly female. It makes the adidas Predator Pulse boots as well as the +F50.6 Tunit boots which were heavily promoted by some famous footballers during the 2006 FIFA World Cup.

In October 2005 33 Panarub workers were fired after they participated in a legal strike trying to get better pay for the thousands of workers in the factory. Workers were being paid as little as 35 pence/40 euro cents an hour and dramatic rises in the cost of living in Indonesia had been occuring. An international campaign was launched to call or their reinstatement.

On the 23rd April 2007 the 33 workers, almost the entire Perbupas union leadership at the Panarub factory in Indonesia, accepted severance pay. They could no longer afford to continue the battle against their employers. Despite the dismissed workers receiving a good severance pay-out, there were ongoing violations of workers’ union rights at the Panarub factory.

By June 2009 The Perbupas union (now called SBGTS) had re-established itself in the factory, and now has approximately 2,000 members. Through this union and another union at the factory, workers are pushing for better pay and conditions.

This progress from adidas is very welcome, however we are continuing to call on adidas to fulfil its promise to support the 33 workers who were illegally sacked from the factory into new work. A number of them have applied up to nine times for work at another adidas supplier but have been refused interviews for a variety of reasons, while other less experienced and skilled staff have been taken on.

PT Spotec and PT Don Joe: Thousands making adidas goods lose their jobs

In November 2006 the Pt Spotec and Pt Dong Joe factories closed leaving 10,500 workers without jobs. These factories produced for Reebok, and then for adidas after adidas bought Reebok. The Clean Clothes campaign expressed concern that the buying practices of adidas were likely to be one of the main reasons the factories had to close.

adidas alleged all three supplier factories had “huge and unsustainable debts due to gross financial mismanagement.” Trade unions involved in the three factories believed that this debt is because of an upgrade in infrastructure that was carried out at the request of adidas.

adidas was unwilling to provide evidence of their allegations of mismanagement by their former supplier factories or that their buying practices did not contribute to the closure of PT Spotec and Dong Joe.

The Clean Clothes Campaign, Oxfam Australia, the unions from the factories and concerned citizens from around the world called on adidas to help the workers find new jobs. We were particularly worried that union leaders from these factories might be blacklisted and denied work in other factories.

In February 2009, following an ongoing campaign, we persuaded adidas to make sure ex-Spotec workers were prioritised during recruitment and employment at their new sport shoe supplier factory (CLI), which took over the site of the old Spotec factory. As a result, 1450 ex-Spotec workers have now got jobs at CLI, including a number of the trade union leaders.

Again, we welcome this progress, but we remain concerned about the fate of the 9,000 workers from Spotec and Dong Joe who didn’t get jobs at CLI. This includes a number of former trade union leaders. We are particularly concerned at the lack of transparency in the recruitment process employed by CLI.

Ask adidas to keep its promise to workers

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