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NEWSLETTER 14, JULY 2001

News from Germany

CCC - adidas-Salomon negotiations break down again

For the second time within one year, adidas-Salomon has ended negotiations to reach an agreement with the German CCC on a pilot project for the monitoring of social standards with suppliers in Central America. In a statement dated May 4th, sent to David Husselbee, adidas' global director for social and environmental affairs, the CCC said that they find the reasons for the cancellation unconvincing.

After receiving negative press in recent due to the dirty labor practices of its suppliers around the world, in early 2000 adidas appeared to be ready to reach an agreement with the CCC for a pilot project in El Salvador. The project was conceived to actively involve local organisations in monitoring labor standards. After initial progress however, adidas broke off the negotiations in April 2000 claiming that the local monitoring partners proposed by the CCC -- GMIES -- was not "independent enough". The CCC believes this claim is unfounded. Through the years, GMIES has established a solid track record in monitoring labor standards for other firms, notably the GAP.

A year later adidas informed the CCC that they would prefer to cooperate with the US-based Fair Labor Association (FLA). The FLA code of labor practice is considered by the CCC and many others to be seriously flawed, not only in terms of the scope of their standards but also with regard to their monitoring procedures. In comparison, the CCC code of conduct is more comprehensive.

The CCCs in Switzerland, the Netherlands, Sweden, and France have already made agreements to carry out pilot projects to test monitoring and verification systems with several companies in developing countries in which southern organizations participate. Adidas, however, prefers not to cooperate -- not only with the CCC but in other legitimate forums as well: the company refused to participate at a hearing on labor standards organized by the European Parliament (see related article elsewhere in the newsletter).

The CCC believes it is time for adidas to do more. They should cooperate with civil society organisations such as the CCC to improve their labor rights record. Despite claims to the contrary, for instance, a new study revealed that in the adidas manufacturing plant Hermosa in El Salvador, production workers are still subject to forced overtime and pregnancy tests. While in Indonesia, a trade union leader was imprisoned for 20 days for her union activities at PT Panarub, another adidas supplier. It is this kind of news that has made headlines for years now, yet adidas still has not taken constructive action to systematically improve working conditions for those who make their products.

Pressuring Karstadt/Quelle

March 8 (International Women's Day) a CCC campaign targeting another German heavyweight, Karstadt/Quelle (KQ, for short), was launched. KQ is actually the biggest department store chain in Europe and ranked sixth worldwide. KQ's empire includes several big names in the German garment industry - Hertie, Neckermann, Hess Natur, Runners Point, and Wertheim, to name a few. KQ operates stores not only in Germany, but also in Switzerland and Austria.

To its credit, KQ has distinguished itself as one of the few big German businesses which supports Fair Trade initiatives (some Fair Trade and Rugmark products are available in KQ stores) and one of its newly-acquired business interests, Hess Natur, sells environment-friendly products. But the German CCC wants KQ to broaden its social and environmental commitments further and embrace the CCC's Code of Conduct and accept independent monitoring. The CCC found out, for instance, that workers from one Quelle (that's the mail-order part of the business) supplier in Indonesia were forced to do overtime and had to work up to 82 hours per week! It is too report any concrete response from the company but one thing is certain, somebody from KQ is now starting to count the number of protest cards coming their way.

Minding Puma's business

The interaction between the German CCC and Puma - two meetings and exchanges of letters - has so far proved fruitless. In a letter to Renate Huppertz, the German CCC coordinator dated January 18 this year, Dr. Reiner Hengstmann, Puma's director for environmental and social affairs, insisted that their own code is comparable to that of CCC and that their own internal auditors make sure that their codes are implemented. On the specific issue of a "living wage," Hengstmann claimed that their own code guarantees that workers are paid the respective required minimum wages which are assumed to cover their needs. The message was clear: so far Puma is not taking the campaign's demands seriously.

But the CCC is resolved not to let Puma off so easily. CCC activists are now collecting fresh data on Puma's business practices abroad and planning to publicize them as soon as possible. Difficult research, but with the help of CCC partner NGOs and trade unions in the countries where Puma goods are produced, this work can be made easier.

Strengthening and Strategizing

A big boost to the campaign this year and something that firms like adidas and Puma should notice that two big national youth organizations have recently joined the CCC: the Protestant Youth Federation (Arbeitsgemeinschaft der Evangelischen Jugend /AEJ ) and the Federation of German Catholic Youth Organizations (Bund der Katholischen Jugend / BDKJ). The AEJ and BDKJ are two of the largest youth organizations in Germany and as such have an influence on German youth, who are one of the main target groups for the marketing efforts of the sportswear industry.

As the German CCC welcomes its new members, another campaign activity is being developed. A major "Sports Congress" is planned for just before the Football World Cup to be held in Japan and Korea in June 2001. The idea is that the Sports Congress will gather together German sports celebrities, students, youth and sports organizations, as well as sportswear companies to draw attention to the plight of workers in the sportswear industry and to the shortcomings of the code of conduct of the World Federation of the Sporting Goods Industry (for more on this code see "What is the WFSGI" in newsletter 13). Student and sports activists from other countries are also invited to join the event. For example, students from United Students Against Sweatshops (USAS) from the United States have already expressed interest in participating. One idea is to have student activists exchange information about their campaign experiences and other topics through internet chat rooms prior to the Congress.

On another front, CCC is actively involved in series of roundtable discussions that serve as a follow-up to the "European Initiative for Ethical Production and Consumption" conference that took place in June 2000 in Bonn. This initiative intends to organize a dialogue between representatives from industry, trade unions, government, and non-governmental organizations to advance the cause of codes of conduct and independent verification. The German roundtables are supposed to analyze and develop options for monitoring and independent verification of codes of conduct. At the first two meetings in January and March 2001 a document on the aims and objectives was adopted and experiences from existing code projects (ETI, FLA, SAI, WRC and CCC) were compared. A third meeting will take place in July 2001.

Urgent appeals work will receive more attention from the German campaign this year, with a revitalized urgent appeals team and one staff member at the German CCC coordination office specifically taking up this work. Since March this year, an "Urgent Action" section has been added to the German CCC website (www.sauberekleidung.de) where readers can read about current cases of labor rights violations in which workers organizations are calling for international solidarity actions. Visitors can download protest letters to be sent to the companies involved. A number of surfers have already signed up to join the "Urgent Action" mailing list.

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