LONDON — Adidas has reached a settlement with Indonesian garment industry workers to compensate for financial losses they sustained after the PT Kizone factory, which manufactured goods for the German company, closed unexpectedly last year.
The terms of the settlement have not been disclosed.
“The Adidas Group has been supportive of the factory workers since we first learned about the PT Kizone’s closure, providing aid through job placement programs, food vouchers, and direct advocacy withgovernment officials,” an Adidas spokeswoman said Wednesday.
“We are committed to long-term solutions, and wanted to resolve this matter so we could ensure the focus moves to sustainable solutions for the future. This additional assistance will provide additional relief to workers and their families still impacted from the unethical factory closure,” she added.
In a separate statement issued on April 24, Adidas said “hundreds” of displaced PT Kizone workers failed to receive severance payments from the factory’s former owner, who fled the country in January 2011, causing the factory to close three months later.
Before reaching the settlement, Adidas said it had supplied $525,000 in humanitarian aid as well as job placement services, and had advocated issues related to workers’ rights.
As a result of the settlement, the Indonesian district labor union representing former PT Kizone employees — Dewan Pimpinan Cabang, Serikat Pekerja Textil, Sandang Kulit-SPSI Kabupatan Tangerang — said it would ask for a lawsuit filed in the U.S. against Adidas to be dismissed.
“The union and the workers are very pleased that Adidas has made this settlement, which will have a real impact on the workers’ lives,” said a representative of the Indonesian district labor union, who was quoted in the Adidas statement from last week. “Now we can put the lawsuit behind us.”
In a separate statement from the Clean Clothes Campaign, one of the advocacy groups that had campaigned on behalf of the workers, Aslam Hidayat, head of the PT Kizone workers coordinating committee, said: “We are proud to be part of such an agreement. But most of all, we are relieved that our families will be receiving the funds that they need so desperately.”
The campaign to secure compensation was spearheaded by Kizone workers in Indonesia and labor rights activists worldwide, including the Clean Clothes Campaign in Europe, as well as People and Planet, SumOfUs.org and War on Want.
“The success of this campaign shows the power of worker solidarity and indicates what international consumer pressure can achieve,” said Mirjam van Heugten, a spokesperson for Clean Clothes Campaign.
“There is enormous power when unions, workers, and consumers unite, and it's time that global brands take responsibility and respect the human rights of the workers throughout the entirety of their supply chain,” she added.
Adidas, meanwhile, said it is working to improve protection for its factory workers worldwide.
“We are continuously exposed to complications resulting from lapses in governance across the global market economy and supply chains. This poses risks to all stakeholders — buyers, workers, and consumers alike,” said Glenn Bennett, member of the Adidas Group Executive Board in the Adidas statement last week.
“The industry-wide initiative led by the Global Forum for Sustainable Supply Chains represents a meaningful step towards long-term change in addressing what workers’ advocates, industry experts, universities and brands are all after — an end to the problem of unethical factory closures and better protection of workers’ unemployment and severance rights. This remains an ongoing priority for the Adidas Group and is critical to our business. It is also the right thing to do,” he added.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye