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Complaint

CCC vs. Adidas

Labour rights violations in Indonesian supply chain

Date filed
5 September 2002
Keywords
Countries of harm
Current status
No resolution
Sectors
NCP

Allegations

CCC’s complaint alleges that Nike and Adidas’ suppliers in Indonesia are violating labour rights. Specifically, workers have been denied the right to organize and to collective bargaining. They have been subjected to intimidation ranging from humiliation, arbitrary arrests and threats to their health and safety. As a result, workers are unwilling to speak out about abuses out of fear of retaliation.

In addition, workers do not receive a living wage. The low wages impacts parents, particularly women, who are frequently forced to live away from their children. The complaint also raises occupational health and safety issues.

The complaint is based largely on Timothy Connor’s report, “We are not machines” (2002).

Relevant OECD Guidelines

Outcome

The Austrian NCP referred the Adidas case to the German NCP, which accepted the case on February 10, 2003. The NCP held two meetings with the parties. Before the second meeting, the German NCP circulated a draft statement in the hope that the parties might reach a consensus. The draft statement praised Adidas’ “Standards of Engagement” policies and its membership in the Fair Labour Association.

However, the draft did not make a determination on whether the labour rights violations at Adidas’ suppliers were justified. CCC rejected the idea of discussing a draft NCP statement without first hearing Adidas’ response to its earlier proposals for action. Adidas commented on CCC’s four proposals, but rejected any concrete steps to address labor rights violations.

The German NCP issued a statement in September 2004 after the parties failed to come to an agreement on a course of action. The statement assesses the Adidas case and makes proposals for future action. CCC was disappointed in the outcome given the time and resources spent preparing the complaint and participating in the process.

Adidas has taken some positive steps, but CCC does not find them to be satisfactory. The issue of minimum wage is not addressed in the Guidelines, but Adidas agreed to act on this part of the complaint.

More details

Defendant
Company in violation
Other companies involved
Complainants
Affected people
Other NCP's where the complaint was filed
Date rejected / concluded
1 May 2004

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