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19 Nov 2000, Statement from Garteks-SBSI on Adidas

Dear friends,

Please find below a statement from our Indonesian friends in connection to the European Parliament hearing on production conditions in the sportswear industry that will be held next week wednesday. At the hearing evidence concerning another supplier of Adidas in Indonesia will be presented, and Adidas has been called upon to be present at the hearing and give their statement.

Statement from Garteks-SBSI on the current social policy of Adidas in their Indonesian production plants

1. Garteks acknowledges an open attitude from Jakarta, Singapore and Hong Kong Adidas staff members, as to willingness to talk with our representatives, since the beginning of this year. Officially they pronounce on having an open relationship and dialogue for exchanging information and mutual consulting.

2. Nevertheless, our experience in the last months shows that this 'policy' is merely passive: Adidas only respond to our initiatives and in the conflicts when they are asked explicitly. Their contacts and information are limited to the management side and the official union's side. They don't contact the other organization, although they know they are part in the conflict.

3. On the freedom of association, the Adidas policy is very passive. Guarantees for freedom of association are not explicitly taken up in the code of conduct, and no active measures are taken to promote dialogue with all parts and effective workers' participation in industrial relation. The official explanation that they cannot intefere in these relationship is idle: they feel they can, and they do, on other issues, and with success (like safety and health)

4. As a result of this, we feel the approach is 'paternalist', in a sense that they act on behalf of the workers, to protect them from certain risk. This is good as such, but should be done on demand of, and in co-ordination with the workers, who know their own interests, and the best way to protect them. The non-existing insistence on freedom of association is seen by the workers as if they were not able to organize and speak up and act for themselves. In our point of view, freedom of organization is the basic condition to allow workers by constructive dialogue to improve the working conditions.

5. The reality of conditions in Adidas production plants shows the non-adequate approach of the current Adidas policy. In most of these plants the old union has still an overwhelming majority, supported and closely connected to the management interest. Workers cannot move from this situation without a risk of losing their job. Even factories like Nicomas Gemilang, where physical working condition are not the worst comparatively, do not meet at all the workers' need and support actively the majority union, even in its attacts to other unions. The salary policy of Nicomas Gemilang, traditionally proud of paying beyond the minimum wage, is being undermined lately, proving the inadequacy of the wages actively been 'discouraged' by the majority union and management. In other plants the situation is worse, for instance due to general abuse of short-term contracts, and non-payment of social security benefits.

6. Garteks urges Adidas to subscribe actively the promotion of free independent unions in their plants, and industrial relations based on open dialogue with effectively representative organizations. In consequence, Adidas representatives should take an active part in promoting and monitoring this process, by direct dialogue and information exchange with the organization involved. This more active policy, in cooperation with employers and unions, could be very positive as a trendsetter in Indonesia to develop industrial relations in the rest of the garment sector, and even open up broader possibilities for bilateral co-operation to improve the companies' and workers conditions in the garment industry in Indonesia.

Jakarta, November 2000 Sumarno-Garteks-SBSI

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