Please contact adidas today!

Herra was one of the union leaders dissmissed from the Panarub factory late in 2005 for het participation in a one-day struke - Photo: M.Revaldi/Oxfam Australia

We are contacting you today to ask you to support the PT Panarub workers in Indonesia.
The PT Panarub (Panarub) Factory in Tangerang, near Jakarta has been supplying adidas goods for over ten years. The factory's 11,500 workers produce sports shoes, including top-of-the line adidas football boots, such as the Predator Pulse line promoted by England's David Beckham and France's Zinedine Zidane and the +F50.6 Tunit promoted by Alessandro Del Piero (Italy); Arjen Robben (the Netherlands); David Villa (Spain); Hernad Crespo (Argentina); Djibril Cisse (France); David Trezehuet (France) and Ze Roberto (Brazil).

Moh. Ali, shown here in front of the Panarub factory, is the leader of the Perbupas union at Panarub. He is one of 30 workers who were dismissed for their participation in a strike in October 2005. - Photo: M. Revaldi/Oxfam Australia

Prior to 2004, Panarub was criticized by human rights organizations for its poor wages and working conditions and its failure to respect labour rights. An independent investigation by the US-based Worker Rights Consortium (WRC) in January 2004 identified serious health and safety issues at Panarub. The investigation found employees in the hot press section were forced to inhale melting rubber fumes throughout their shift and many workers operating the hot glue machines had burn scars or fresh burns on their hands. The WRC report also documented systematic discrimination by management against members of Perbupas, one of the unions at the factory. Many of you will remember the case, which was raised publicly by the CCC and others during the Play Fair at the Olympics Campaign.

To its credit adidas responded positively and worked with factory management and local organisations, including both unions in the factory, to improve conditions and end discrimination against the Perbupas union. Unfortunately adidas' support for workers' rights at Panarub is again in question after 33 Perbupas union members, including union leaders, were sacked following a one-day strike at the factory in October 2005. Strike demands included a call for an increased annual bonus to help cover dramatic increases in workers' costs of living. Panarub management refuses to reinstate 30 of the workers and adidas should still be pushing them to do so.

Paiman, shown here with his wife and two children in front of their rented room, works in the Panarub factory which makes football boots for adidas in Indonesia. "My salary is not enough to provide necessitites for my family so I had to take out a loan," he explained. - Photo: M. Revaldi/Oxfam Australia

It is a matter of great concern to us that we seem to be back to the situation prior the 2004 Play Fair at the Olympics campaign: the Perbupas leadership has been unfairly terminated and there are serious concerns regarding the industrial relations practices at PT Panarub. Recommendations made by the WRC and others to address these issues, including independent verification of union membership, collective bargaining involving all unions, training of workers and management, are being ignored or remain outstanding.

Adidas is dragging its feet over this case, first waiting for the Indonesian labour courts to rule, despite serious evidence that the procedures and entities in question lack all credibility to impartially and effectively rule in this case. When the verdicts finally came in they were filled with inconsistencies and flaws and failed to provide a detailed legal explanation for their decision (which was in favour of management), something which adidas characterized as disappointing. The case was then reviewed by the National Human Rights Commission (henceforth "KOMNAS") and it seemed that much of adidas's next steps hinged on the results of the KOMNAS investigation. KOMNAS wrote to Panarub on 27 April 2006 indicating that the factory's managers had failed to prove they had a legal basis for dismissing the workers. KOMNAS offered Panarub a final opportunity to provide evidence, but noted that the company had already made five evidential submissions. KOMNAS's letter suggested it would be easier for Panarub to admit the 30 workers were dismissed for participating in a strike and to revise the decision to dismiss them. The KOMNAS recommendation once again has made it evident that PT Panarub management does not have a case for terminating the 30 employees.

All things considered, there is no reason for further delay in reinstating the 30 employees. Adidas' code of practice requires its suppliers to respect workers' right to freedom of association, which includes the right to strike. Adidas should uphold its code.

For more information please see the case study on PT Panarub (which covers events until 30 September 2005) that appears in the Oxfam International report Offside! Labour rights and sportswear production in Asia (downloadable at: www.oxfam.org/en/policy/briefingnotes/offside_labor_report)

Ongoing updates will be made available at: www.oxfam.org.au/campaigns/labour/06report

Action request

Please contact adidas today and urge them to:

• Ensure that Panarub management immediately reinstates all 30 employees to their former positions and to assure that all wages lost during the time of suspension are paid in full.
  
• See to it that industrial relations improve, among others by fully implementing the WRC recommendations.

Dear Mr. Henke,

I am disappointed to learn that the workers who make adidas football boots at the PT Panarub factory in Indonesia are not able to exercise their right to freedom of asssociation. I'm contacting you today to ask you to tell management at the factory that this is unacceptable!

Specifically, I've been informed by the Clean Clothes Campaign (CCC) that 30 workers who are members of the Perbupas union were fired following a one-day strike at the factory in October 2005. Management had no legal basis for dismissing these workers. I support calls for these workers to be immediately reinstated and for management to make a serious effort to improve industrial relations in this workplace. I urge you to contact PT Panarub management today to tell them that you support these demands as well.

I understand that adidas has a code of practice that ensures that freedom of association and the right to go on strike will be respected in the workplaces where its products, such as the Predator Pulse and the +F50.6 Tunit, are made. Now is the time to stand up for your code and take action! Please keep me informed of how adidas will really ensure that workers' rights are respected at PT Panarub.

Sincerely,

[insert name here]