Adidas, PT Kizone Workers Reach Settlement

The workers from PT Kizone have reached  a settlement with Adidas after their factory closed over two years ago without providing workers with legally mandated severance pay.  The details of the settlement are confidential, but United Students Against Sweatshops (USAS) declared it a “victory.”

From the USAS website:

Adidas-victory-graphic1

In hard-fought victory, students and workers have forced German sportswear giant Adidas to compensate 2,700 former Indonesian garment workers who produced collegiate apparel at PT Kizone, an Adidas supplier factory that closed down over two years ago. While the contents of the agreement remain confidential, the PT Kizone workers’ press release stated that “the former workers will receive a substantial sum from Adidas” and the settlement will resolve a powerful international campaign over Adidas’s prior refusal to pay $1.8 million in unpaid severance pay following the closure of PT Kizone.

Ths agreement builds on the historic precedent that USAS activists set with Nike in 2010 when the brand was forced to pay two million dollars in legally owed severance pay to 1,800 former Honduran garment workers.

“For years, workers in the global apparel industry have routinely been robbed of their legally mandated severance pay when factories close. With today’s announcement, students and workers have established a new norm in the global garment industry; the two largest sportswear brands in the world have both acknowledged that they can no longer walk away when their contractors deprive workers of money they have legally earned,” said Lingran Kong, a student at the University of Wisconsin-Madison.

For previous posts on PT Kizone, go here.

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One response to “Adidas, PT Kizone Workers Reach Settlement

  1. Pingback: Oligarchs, BAdidas Victory, Retirement Scam, etc. | Dollars & Sense BlogDollars & Sense Blog

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