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NEWSLETTER 12, MAY 2000
Adidas ends negotiations in El Salvador
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After more than a month of negotiations between the German Clean Clothes
Campaign and adidas on a pilot project in El Salvador the talking
stopped on the 13th of April 2000 when it became clear that an agreement
was out of the question.
How did it all start?
In August 1998, a prominent German TV broadcast reported about
the horrifying working conditions in the Formosa factory in El Salvador.
Pressure on adidas from campaigns to end these practices did not
lead to changes. However, in June 1999, adidas hired auditing firm
Verité which brought out a report on the situation. Although
this report fails to mention or investigate earlier reported incidents
such as working hours of 60-70 hours per week, it still reports
numerous and confirmed the allegations made by the CCC. Most workers
interviewed had experienced, witnessed, or heard of incidents of
verbal, physical, or sexual harassment of workers by supervisors.
Workers reported (and were observed) being subject to systematic
verbal abuse if they didn't work fast enough. There is a lot of
pressure on workers to fulfil quotas which are fixed in such a way
that workers only reach them once or twice a week after working
overtime. The majority of workers interviewed said that they did
not have the right to form a union, and many cited incidents in
which workers had been dismissed for trying to organise. The workers
who spoke to Verité made it clear that they were taking a
risk in talking to the auditor and were afraid of the consequences.
Research carried out at the beginning of this year showed that the
situation has not changed, and that in other adidas suppliers working
conditions in El Salvador were also problematical.
Subsequently, adidas and the German campaign started talks on how
to improve the situation. At the beginning of March 2000 the German
Clean Clothes Campaign started negotiations with adidas on a pilot
project in El Salvador in which GMIES (Grupo de Monitoreo Independiente
El Salvador = monitor of the GAP supplier Mandarin) was proposed
to be the independent monitor of the adidas suppliers there. A draft
proposal for a pilot project was send back and forth. These negotiations
culminated in meetings between adidas, GMIES and the German Clean
Clothes Campaign from April 11-13th 2000 in El Salvador. Adidas
had meetings with their suppliers.
The third and last draft proposal from the German Clean Clothes
Campaign
As an important step towards institutionalised independent monitoring
in which monitoring organisations of the respective producer countries
are involved, adidas-Salomon and the German Clean Clothes Campaign
agree on a pilot project on independent monitoring in El Salvador
which is based on the following ILO Conventions:
No. 29 and 105 on forced labour, No. 100 and 111 on discrimination,
No. 138 on child labour, No. 87 and 98 on the freedom of association
and collective bargaining, No. 26 and 131 on wages, No. 1 on working
hours, No. 155 on health and safety.
The main points of the pilot project are as follows:
- The monitoring shall be done by GMIES (Grupo de Monitoreo Independiente
El Salvador). The monitoring methodology to be used will be acceptable
to both adidas-Salomon and the German Clean Clothes Campaign.
- The independent monitoring and verification will be conducted
within one year. Within that period of time the monitoring including
the follow-up process (action plan as well as verification of
the improvements) will be done. adidas-Salomon will continue with
internal monitoring and assist the factories to develop action
plans and follow-up on the problems identified by the independent
monitors.
- The aim is independent monitoring and verification of six direct
suppliers (including Formosa Textile) producing for adidas-Salomon
during the period of time when the monitoring is done in El Salvador.
- With regard to conducting the monitoring, formal written statements
on the exact modalities will be agreed in April 2000 in El Salvador
regarding the relationship between adidas-Salomon suppliers in
El Salvador and GMIES as well as their respective responsibilities
relating to the implementation of the independent monitoring.
Prior to this, adidas-Salomon, GMIES and the German Clean Clothes
Campaign conclude a written agreement on the type and scope of
the monitoring.
- The reports from GMIES will be sent at the same time to adidas-Salomon
and the German Clean Clothes Campaign and will form the basis
for necessary action plans for the improvement of the working
conditions to be agreed between adidas-Salomon and the suppliers.
- The actual financial costs for the monitoring are to be borne
by adidas-Salomon. The German Clean Clothes Campaign contributes
3 000 US $ for the expansion of the GMIES infrastructure in order
to ensure the verification as part of the monitoring process.
- After concluding the pilot project, adidas-Salomon and the
German Clean Clothes Campaign will jointly assess the results
of the monitoring and the follow-up process. On this basis they
will consult on a continuation of their cooperation with regard
to independent monitoring.
In El Salvador
On April 13th 2000 David Husselbee, representing adidas, terminated
the negotiations with the German CCC and GMIES in El Salvador. The
reason given for the failure was that adidas could not convince
the suppliers to cooperate with GMIES. These consider GMIES not
suitable for the work. Especially the owner of Formosa, Daniel Sharp,
was very strongly opposed to having GMIES in the factory.
Adidas felt it not their task to force their suppliers although
they were willing to engage in a process that would lead to acceptance
of GMIES as a monitor. Adidas underlined that in previous cases
when GMIES was designated to monitor factories (The GAP/Mandarin,
Liz Claiborne/DoAll) there was a crisis in which the appointment
of GMIES was unavoidable. This situation is different now according
to them.
The German Clean Clothes Campaign as well as GMIES are very disappointed
with the termination of the negotiations. adidas has taken the easiest
way out of the situation and did not stand up to its responsibility
for the working conditions at its supplier factories by refusing
to put pressure on them. Even worse: adidas considers to stop their
business relations with Formosa. Instead of improving the working
conditions adidas helps now to destroy workplaces. Further steps
are considered.
At the 3rd of June the German CCC will have an action on adidas,
see the related articles on Euro2000 in this newsletter.
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