Letter to adidas concerning euro 2000

Brussels, 5th May 2000
Adidas Salomon
M. David Husselbee
World Director for Social and Environmental Affairs
Adi-Dassler-Strasse 1-2
D-91074 Herzogenaurauch

Dear M. Husselbee,

Wereldsolidariteit is an active member organisation of the Clean Clothes Campaign and the Worldshake Campaign in Flanders - Belgium. As you know already, at present we're running an action on the working conditions in the sportswear industry. Up till now we have gathered some 20 000 pictures of supporters in favour of living wages. We had hoped to meet you at the Worldshake happening in Mechelen next Saturday. So, we regret you will not be present. But still, we look forward to receiving the declaration you promised.

This is our statement about the adidas Standards of Engagement, about recent findings relating to the working conditions in Indonesian plants producing for adidas and about the commercial contracts between adidas and the EURO 2000 Foundation. Adidas Standards of Engagement Living wage Regarding the adidas Standards of Engagement, we want you to review its content and include among the standards 'living wages' instead of 'minimum wages'. Nowadays reference codes of conduct (Clean Clothes Campaign, ICFTU, FIFA, ETI, WFSGI) all include 'living wages'.

El Salvador We regret the negotiations with the Clean Clothes Campaign regarding independent verification of adidas Salomon suppliers in El Salvador broke down. It is important to start a process of dialogue with these suppliers, so that they accept monitoring and independent verification in the near future.

Monitoring and independent verification If the adidas Standards of Engagement claim to support adidas workers, these workers must not only be heard but also actively involved in a system of monitoring and independent verification. Therefore adidas should involve workers' organisations to build up such a system. To that extent monitoring pilots should be set up in several parts of the world. And it should be made clear that these pilots are steps in a long term process.

Indonesia Findings § There is intimidation and suppression of independent union activities. The paternalist attitude of the management prevents a genuine social dialogue. § Wages are insufficient to cover basic needs (food, housing, clothes, education, health) § There is a lot of pressure on workers to fulfill quotas which are extremely high. There is permanent overtime. Our demands § Ensure that workers understand the adidas Standards of Engagement § Develop strategies for workers to communicate violations without the fear of being fired § Allow workers the freedom to join together in unions and negotiate for their own welfare § Recognise SBSI and other unions, and develop a genuine social dialogue § Pay workers a living wage covering needs of food, housing, clothes, education and healt costs, and present transparency about the salary composition § Set production goals that can be reached during regular work hours.

EURO 2000 § Adidas is one of the main suppliers of the EURO 2000. Last year the Clean Clothes Campaign discussed its concerns and demands with Alain Courtois, director of the EURO 2000 Foundation. In December '99 Alain Courtois announced that the FIFA code of conduct had been included in all commercial contracts signed with the sponsors and suppliers of the EURO 2000. We want adidas to assess whether the actions of its suppliers contravene the social standards set in the EURO 2000 contract.

We call on Adidas to bring about a real change. Please take action to rectify the problems listed above and genuinely commit your company to respecting the human rights of workers who make your products.

with kind regard,

An De Wit SBSI Conclusions and proposals to adidas Jakarta and adidas Singapore after visiting Adidas suppliers in April 2000: Nikomas Gemilang(Serang) and PT Bintang Adibusang and PT Bintang Busana Jaya (KBN)

1. Nikomas Gemilang The reception and information given by management and SPTSK was very positive and we actually believe this plant offers rather good working conditions, particularly when compared to other situations in garment industry in Indonesia and other East-Asian countries. We appreciated that initiatives in social policy go effectively beyond minimum regulations set by the authorities. Nevertheless, we had the impression these initiatives came rather and in the first place from management, and are strongly stimulated by Adidas/Nike respectively, instead of coming from direct workers' demands. In that sense, and as to other information we had from workers directly, we have our doubts on the nature of social dialogue in this factory: - on the representation capacity of the majority union - on the rather paternalist attitude of management instead of a real interest-discussion between equal partners - on different working conditions in Adidas and in Nike-production - on the non-recognition of other unions that are existing in the factory

So, in the aim of keep on constructing the existing dialogue, we think further information might be required on: - the definition and composition of salaries based on the financial possibilities of the company - relations between Adidas and Nikomas Gemilang: which items are included in the dialogue on code of conduct; which contacts are there with workers'representatives - the policy of union representation (of management and of Adidas):real options and practice - possibilities on structural reform of industrial relations as a sector leader

2. PT Bintang Adibusang and PT Bintang Busana Jaya

Although working conditions in the factory we visited were quite good, we felt from both management teams that the presence of a union was experienced rather as a burden instead of a chance for more productivity. We feel that from both parties the question has to be faced on how real social dialogue can be used in their advantage. In these factories the social policy was rather adjusted to legal minimum standards instead of to extra-advantages. We had the impression here as well of a management lead social policy: - In the factory we visited the in-house union is clearly organized by management - the salary-policy recognizes explicitly the structural deficit of the basic salary for a normal hours working day The working conditions were all right , but the overall working burden is felt too high by the workers: permanent overtime, deficient housing and long transport make that workers can nor do anything but work, and the salary id not sufficient to compensate for this overall investment. The high rotation of personnel might be analyzed to its cost-efficiency and compared to alternatives of investing that money in better organizational conditions.

In this case, a serious discussion would require more information on: - the role of the Adidas orders in the price -setting and financial maneuver space for management - the specific investment conditions in KBN - salary setting to be considered in the context of the low-wage-attraction of Indonesia, the practices of minimum wages set by government instead of collective agreements - Adidas's attitude towards sector organization of employers - Promotion of active unionism (pluralist) by e.g. a gradual approach of agreement-contents and assistance by external union-officers

From our point of view, a dialogue can and should be set up without any preliminary constraints, involving Adidas, the local suppliers, and in this case SBSI as the union who has taken the initiative and commits itself to open discussion . This dialogue does not necessarily includes all the parties from the beginning, a gradual strategy can be elaborated, and may be the starting point should be limited to the plants. The discussion can include: - the recognition of SBSI (and other unions) - the construction of real social dialogue and representation of all workers - a similar union policy to be followed in all the involved plants, to be co-ordinated and guaranteed by Garteks-SBSI - a commitment to inform on all the steps taken and to discuss any conflict - a long-term structural approach to salary-composition and definition. In our view this approach should be taken to the sectoral level to avoid competition interference amongst the different plants in the country. - A promotion of social dialogue by training of management and union-leaders - An inclusion in the code of conduct of - recognition of all unions -strive to basic salary covering needs of food, housing, clothes, education and health costs