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Company Response

27 Jan 2023

adidas' response to allegations of abuses in Myanmar Pou Chen factory - January 2023 Update

[...] Pou Chen has offered to reinstate the workers with full pay, with no loss of seniority and to the same
positions they previously held. They have also committed to ensure that there is no retaliation against
workers for their participation in the strike and that their rights under Myanmar law are fully respected.
And for those that opt not to return to work, they will be provided with a severance package in lieu of
Negotiations continue between the workers and the factory management over the wording of the
reinstatement agreement. At this point, we understand that there is only one open item: the clause on
confidentiality. We expect this to be resolved within the coming week.
Once reinstatement has been secured, we will engage with the unregistered union, with Pou Chen and
with the existing Workplace Coordinating Committee, to strengthen social dialogue and through this
mechanism we hope the parties can come together to address workplace conditions and the economic
interests of the workers [...]

Response update on 14 February 2023:

We would like to take this opportunity to update you on the successful resolution of the above case.

At the end of December 2022, Pou Chen Myanmar informed adidas that they had offered the dismissed workers reinstatement, or mutually consented severance for those who did not wish to return to work.

Thirteen of the 26 workers who had been dismissed following a strike held in October 2022, opted to sign a voluntary severance agreement, and 13 workers asked to be reinstated, including the founding members of the unregistered union who led the strike.

Following multiple rounds of negotiation over the terms of the reinstatement, a final agreement was reached on February 9, 2023. On signing the agreement, the thirteen workers immediately returned towork.

The local labor rights advocacy group, which had supported the dismissed workers throughout this process, wrote to adidas to confirm that the dispute had been settled.