Labor rights groups have hit out at the Organisation for Economic Co-operation and Development (OECD) after its German National Contact Point (NCP) dismissed a complaint against Adidas for alleged wage and freedom of association violations at a subcontractor in Indonesia...

A spokesperson for Adidas said the company “rejects” the allegation because it was not a contractual supplier at the time in question. The German firm also claims it was “instrumental” in reaching an agreement between PDK and local unions and securing compensation for the affected workers.

“The published OECD statement summarizes the results of a longstanding mediation process to which Adidas has significantly contributed,” the spokesperson told Sourcing Journal.

Adidas was named one of the most transparent fashion companies in a recent index of 250 of the world’s leading brands.  A November report found the company was leading efforts to supply a living wage to garment workers, though the entire sector had a long way to go in terms of meaningful progress...