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18 May 2020

Labour groups 'disappointed' as German National Contact Point closed case against Adidas over alleged abuses at Indonesian supplier

In July 2012, 1300 workers at the Panarub Dwikarya Benoa (PDK) factory in Indonesia who went on strike to protest poor working conditions were dismissed. A 2016 ILO report affirmed that the situation at the factory constituted a violation of international human rights principles. Five years on, 327 workers have still not received any form of severance payment.

On 14th March 2018, Clean Clothes Campaign announced its intention to file a complaint against Adidas to the German National Contact Point (NCP) of the OECD for failing to provide access to remedy to workers from their shoe supplier. The NCP complaint repeats an earlier claim by CCC, that Adidas had neglected its responsibility to address human rights violations in this case or to create the necessary leverage to resolve the dispute and calling on the brand to pay severance to the former workers. Previous coverage by the Business and Human Rights Resource Centre, as well as statements by Adidas in response to the allegations, can be found here.

We invited Adidas to respond to CCC’s press release announcing its intention to file a complaint against Adidas, the statement is included below. CCC issued a rejoinder in response to Adidas' statement to which we also invited Adidas to respond. Adidas sent us the following statement: "Thank you for the opportunity to offer a response to CCC’s rejoinder. We believe the arguments set forth by CCC are interesting but flawed when one examines the facts of this case. We look forward to debating these further through the mechanism offered by the NCP." The rejoinder and statement are also included below.

On 24th April 2020, the NCP issued a final statement, closing the case without a resolution. It recommended that Adidas review its reporting and complaint channels in engagement with the complainants. Labour groups have said they were 'disappointed' by the NCP's decision. More information, including comments by Adidas are available below.

Company Responses

adidas View Response
PT. Panarub Dwi Karya View Response

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