The latest development in the investigation of an Adidas subcontracted factory brings a report that could potentially lead to the University of Wisconsin cutting ties with the sportswear giant.
On Jan. 19, the Worker Rights Consortium, an organization that monitors and investigates working conditions and labor rights violations in collegiate apparel factories, released a full report on its investigation of PT Kizone, an Indonesian factory which makes collegiate goods sold by Adidas and other sports companies.
After the Labor Licensing Policy Committee brought allegations of code of conduct violations at the factory to UW’s attention in December, Interim Chancellor David Ward solicited the organization’s help to further investigate the case.
In its newest report, WRC found violations occurred when the owner of PT Kizone fled the factory when it shut down in January of last year without compensating about 2,700 workers more than $3.4 million in severance pay.
WRC Executive Director Scott Nova said UW has been considered a leader in the area of labor licensing for many years. He also emphasized this case is especially significant because of the number of people impacted.
Beyond the 2,700 workers who went without legally mandated pay, Nova said it is important to note that more than 10,000 people have been impacted when those workers’ families are taken into consideration.
“It is the scope of the human impact that is particularly noteworthy in this case,” Nova said. “This is an enormous number of people who’ve been effectively robbed of money they earned at a time when they needed the money most.”
Ward released a statement Jan.19 on the report and expressed concern and a commitment to ensuring social responsibility on the part of companies like Adidas.
Ward said he is currently reviewing the report with lawyers, the LLPC and the university committee, and said he will ask Adidas for a detailed written response to the report by Feb. 2.
Nova also said it is also important to note that Nike – which also subcontracted through PT Kizone – has agreed to contribute monetarily while Adidas has at present refused to take any action or compensate any workers.
Adidas has refused to pay because it asserts it had left the factory before the violations happened and it is not obligated to compensate people when contract suppliers do not pay their workers, according to the WRC report.
Ward also said in the statement he thinks compensation for the PT Kizone workers will go more smoothly if other universities with Adidas apparel agreements join in a coalition of support. He expressed a desire for the LLPC, UW Athletic Department and student government to reach out to those at other institutions who also work with Adidas.
“Many peer universities have previously shown a commitment to social responsibility, and I am hopeful that they will share our concern and lend support to our efforts,” Ward said in the statement.
Currently, Adidas provides apparel and equipment to all UW sports teams in a deal worth about $2.5 million, which runs through June of 2016.
