Indonesia: Union alleges freedom of association & wage concerns in Panarub factory, linked to adidas & Mizuno; includes responses & rejoinders

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Item
26 March 2016

Indonesia: Mizuno denies support to unfairly dismissed Indonesian workers

Japanese sports brand Mizuno, celebrating its 110th anniversary this year, continues to refuse to help 346 Indonesian workers who were unfairly dismissed after a strike in 2012. Some of the women, who have been working for years on Mizuno sportswear, lost their homes and families after the company producing for Mizuno sacked them.

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Company response
26 March 2016

Indonesia: Mizuno response to allegations

... According to our basic CSR policy that we will face sincerely any stakeholder, we consider PDB not only as business partner but also as our stakeholder and respect PDB and Panarub Group. Also we consider SBGTS not only as labor union of PDB but also as our stakeholder and respect SBGTS. Our policy to this case is that the best way should be in accordance with the laws and regulations in Indonesia under respecting Rule of Law though we still hope that the parties reach a settlement in any way. ... We have leant by the inquires that there is a possibility that the strike was illegal asthestrikewasimplementedwithoutpriornoticeandthat itseemstobetough to affirm facts without court ruling if SBGTS’s evidences on unfair labor practice and/or obstruction consist of not physical evidence including documents, photos and transcriptions but only personal evidence with testimony. The Statement also describes that a determination on workers being dismissed on the grounds of illegal strike action can only be made by a properly constituted court and this would be the Industrial Relation Court. ... We stated in M267 that the amicable negotiation seems to be difficult from the fact that the mediation starting October 18, 2012 by PMN failed by the difference of opinion between PDB and SBGTS on the settlement payment amounted about US$0.7 million to workers. 

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Company response
26 March 2016

Mizuno response: background documents

Author: Mizuno

Mizuno has provided more details on its response to the recent allegations.

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Item
10 December 2015

Mizuno response to Clean Clothes Campaign rejoinder

Author: Mizuno

... Mizuno has received a letter dated November 9, 2015 by [Clean Clothes Campaign] and IndustriAll Global Union which describes a demanded amount by GSBI-SBGTS for negotiations in Indonesia and has sent the Open Letter of Inquiry dated November 24, 2015 to  [Clean Clothes Campaign] in order to clarify the status ...  

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Article
5 December 2015

Clean Clothes Campaign rejoinder to adidas & Mizuno

Author: Clean Clothes Campaign

…Since adidas has a long term relationship with the Panarub group, adidas should work actively to ensure a negotiated agreement will be reached between the union and the Panarub group to do justice tothe 346 workers who are still fighting for justice. In addition, CCC strives for enforceable brand agreements which cover the entire supply chain, to stop avoidance of compliance with decent labour standards through the subcontracting of orders…

...We appreciate that Mizuno has investigated the case when it was brought under their attention by international unions and Clean Clothes Campaign. However, in 2012 this had not led to any solution. The follow up engagement with Mizuno from June 2015 both by CCC and IndustriALL has lead to the company agreeing in November to explore a favorable settlement through negotiations...

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Item
1 December 2015

adidas response to Clean Clothes Campaign rejoinder

Author: adidas

…As we explained previously, we were not producing at this subcontractor at the time of the strike, or when it closed a year later.

CCC has claimed that the workers were unfairly dismissed. Yet the union did not legally challenge the factory’s actions. In the case of the retrenched union official, it did exercise its legal rights and took the case to Industrial Court. The Court dismissed those claims, based on the evidence which was presented to it.

The choice of mediator was mutually agreed to by the union and PDB and the mediation process was confidential to those two parties…

…We do not permit our main suppliers to subcontract orders without our express permission. And any factory making our product – be it a major supplier or their subcontractor - must meet the same requirements under our Workplace Standards.

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Article
16 November 2015

Adidas and Mizuno involved in unfair dismissal case

Author: Clean Clothes Campaign

26 Aug 2015

Every week, a large group of workers who stitched sport shoes for adidas and the Japanese brand Mizuno protests outside the PT Panarub Industry building demanding reinstatement and compensation for the loss of income.

The group of mostly female workers has been trying to get their jobs back ever since 1300 of them were fired in July 2012 by the management of the PT Panarub Dwikarya Benoa company. Just before they lost their jobs, 2000 workers held a strike to demand the right to freedom of association and a back payment of the legal minimum wage. After the unfair dismissals, the factory continued with intimidation of striking workers…

[We invited adidas, Mizuno, and Panarub to respond. adidasd and Mizuno responses provided. Panarub has not responded.]

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Company response
16 November 2015

adidas response

Author: adidas

Here are the salient facts, and the actions we have taken.

1. The plant level union involved in this dispute did not follow the legal requirements for a strike and workers were treated as having “resigned” when they failed to return to work within the time specified by the law. That was back in July 2012.

2. adidas Group was not sourcing product from PDB at the time of the strike, nor when the factory closed a year later. Throughout this period the factory was making exclusively for another major sporting goods brand.

3. However, because of our close relations with the affiliated trade union federation, we proactively reached out to the Indonesia government’s Manpower Department and asked them to mediate between the two parties at PDB. That proved unsuccessful…

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Company response
16 November 2015

Mizuno response

Author: Mizuno

…Mizuno used to have a business relationship with PT Panarub Dwikarya Benoa which finished its operation in 2013 and now has a relationship with P.T. Panarub Dwikarya Cikupa. In compliance with the wishes of ITUC, CCC International Secretariat, and IndustriALL Global Union, Mizuno has tried to settle the industrial relation dispute at PT Panarub Dwikarya Benoa by inquiring the fact from both side and advising to the both side from August to November 2012. In 2015, Mizuno has again reviewed the facts to settle the dispute fromnJune to August in compliance with the wishes of CCC International Secretariat, and has been trying to take a leadership role in the reasonable settlement of the dispute to reach the final resolution in accordance with the laws, regulations and their purpose in Indonesia from September to meet requests by CCC International Secretariat and IndustriALL Global Union…

Mizuno provided the following attachments to its response:

-       Letter to Clean Clothes Campaign, 5 Nov 2015

-       Letter to Clean Clothes Campaign, 4 Nov 2015

-       Letter to Clean Clothes Campaign, 30 Oct 2015

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