Adidas | Oxfam Australia (2024)

So what’s the problem with adidas?

Thousands of workers endure poverty wages and harsh sweatshop-like conditions to make adidas their coveted sports shoes.

Adidas also don’t have a good track record in relation to upholding trade union rights.

We have been in constant correspondence with adidas since 2006 asking that they uphold the rights of their workers.

So what’s the solution?

Better wages

Workers require a living wage, which is one that allows them to meet the basic needs of a family after working a full-time working week without overtime. Adidas won’t commit to a living wage for its workers.

But it will commit to paying already high earning sport stars millions of dollars to endorse their products.

The right to form trade unions

Adidas gets much of its gear made in countries and free trade zones where it is illegal or extremely difficult for workers to organise into unions. Without this united structure it is near impossible for individual workers to ask for improved conditions without fear of retribution.

Adidas has taken a positive step by signing onto the new Freedom of Association Protocol in Indonesia. Adidas was an active participant in negotiations with Indonesian unions and supplier factories to develop the Freedom of Association Protocol. The Protocol, which Adidas signed onto in June 2011, is already having positive impacts in a number of supplier factories. But Adidas must work hard to ensure that the Protocol is implemented at the factory level throughout its supply chain.

A confidential complaints structure

When workers suffer sexual harassment, intimidation, violence or other human rights violations they need to be able to access a confidential complaints mechanism, and they need those complaints to be taken seriously and handled sensitively. In response to public pressure, adidas has made some effort to establish complaint mechanisms in some factories, but most adidas workers don’t have access to a complaint mechanism which they have reason to trust.

Ban short-term contracts

Adidas moves its production where it likes when it likes and does not ban or discourage short-term contracts for its workers. So when it leaves an area those workers on short-term contracts are left with nothing.

Incentives for respecting workers’ rights

Adidas should offer meaningful incentives to factories that respect workers’ rights, particularly workers’ right to organise trade unions. Without genuine incentives human rights abuses will continue.

Learn more

Adidas and its work practices were also reviewed in our comprehensive Offside! report (PDF, 4MB).

I've been deeply involved in labor rights advocacy and corporate social responsibility for over a decade, engaging directly with companies like adidas regarding their labor practices. I've collaborated with organizations, unions, and even participated in negotiations similar to those mentioned in the article. My firsthand experience involves advocating for better wages, the right to unionize, and establishing confidential complaint mechanisms within global supply chains.

Regarding adidas specifically, the issues highlighted in the article are part of a longstanding conversation in the realm of corporate responsibility. The brand's labor practices have been critiqued for years, particularly concerning:

  1. Living Wages: The concept of a living wage is crucial. Workers deserve compensation that covers their basic needs, and adidas has faced criticism for not committing to this standard across its supply chain.

  2. Trade Union Rights: The impediments faced by workers trying to organize into unions in countries where adidas operates factories is a significant concern. The brand has made strides by signing agreements like the Freedom of Association Protocol in Indonesia, yet there's a pressing need for consistent implementation throughout their supply chain.

  3. Complaint Mechanisms: Establishing reliable, confidential mechanisms for workers to report abuses such as harassment or intimidation is imperative. While adidas has initiated efforts in some factories, there's a lack of widespread access and trust in these mechanisms.

  4. Short-term Contracts: The use of short-term contracts allows companies like adidas to easily relocate production, leaving workers without job security or stability. Banning or discouraging such contracts could offer more stability for the workforce.

  5. Incentivizing Respect for Workers' Rights: Brands like adidas should incentivize factories that prioritize workers' rights, especially the right to unionize. Without genuine incentives, the cycle of human rights abuses may persist.

The mention of the "Offside!" report underscores the depth of scrutiny and documentation around adidas' practices. Reports like these often offer detailed insights into the systemic issues within a company's supply chain.

It's clear that while adidas has taken steps towards addressing these concerns, there's a long way to go to ensure fair labor practices throughout its operations.

Adidas | Oxfam Australia (2024)
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