Skip to content

Michigan unhappy with how Adidas handled worker’s rights in Indonesian factory dispute

May 1, 2013, 12:12 PM EDT

Michigan Media Day Basketball

A number of college and universities that have apparel contracts with Adidas, including two of their most well-known clients in Michigan and Wisconsin, have taken issue with the clothing company, according to a report from Kristi Dosh of ESPN.com.

The issues centers around the closing of an Indonesian factory called PT Kizone, and the Workers Rights Consortium (WRC) has gotten involved.

According to a report that the WRC produced, in September of 2010, the violations committed by PT Kizone began when they stopped making compensation payments to employees after they left the factory. Three months later, in December, the factory failed to pay their current employees. The owner of the factory then fled the country, and after another company purchased the factory in March of 2011, it was finally closed and declared bankrupt that April.

Here’s where Adidas, who, along with the Cowboys and Nike, had a contract with the factory, comes into the equation:

The WRC, United Students Against Sweatshops (USAS) and other worker rights advocacy groups claimed adidas was refusing to pay $1.8 million in legally mandated severance owed to the 2,800 workers of PT Kizone. Total severance and other pay due under Indonesian law to the workers, who had no advance notice of the factory’s closure, totaled $3.3 million. Both Nike and the Dallas Cowboys contributed partial severance, but for nearly two years, adidas has maintained it does not owe any of the monies.

Michigan, who is as big of a brand name as there is in collegiate athletics, is in the middle of a 10-year, $60 million contact with Adidas signed in 2007. They threatened to reexamine their contract if this situation wasn’t handled, and on April 24th, Adidas reached a settlement with PT Kizone.

Adidas has made waves over the course of the past two college basketball postseasons by giving the programs that they sponsor fancy new uniforms to wear.

It started last March when they gave the likes of Baylor and Louisville fluorescent uniforms to wear during their conference tournaments. It continued this season, as the apparel company gave their six biggest accounts new uniforms to wear during the season that looked an awful lot like zubaz.

You can find Rob on twitter @RobDauster.

Latest Posts
  1. Report: Iowa State commit updates status with Fred Hoiberg rumors swirling

    May 29, 2015, 8:00 PM EDT

    (Jon Lopez/Nike) (Jon Lopez/Nike)

    Will Iowa State’s lone 2015 high school commit stay put if Fred Hoiberg leaves?

  2. Oklahoma State lands graduate transfer big man

    May 29, 2015, 6:45 PM EDT

    chris olivier

    Oklahoma State badly needed another big man and might have found some help.

  3. Duke commit Luke Kennard named Parade National Player of the Year

    May 29, 2015, 5:30 PM EDT

    Getty Images Getty Images

    Duke is getting another Parade National Player of the Year.

  4. Amidst Iowa State rumors, Jeff Hornacek discusses commitment to Phoenix Suns

    May 29, 2015, 4:03 PM EDT

    PHOENIX, AZ - NOVEMBER 05:  Head coach Jeff Hornacek of the Phoenix Suns reacts during the NBA game against the Memphis Grizzlies at US Airways Center on November 5, 2014 in Phoenix, Arizona. The Grizzlies defeated the Suns 102-91. NOTE TO USER: User expressly acknowledges and agrees that, by downloading and or using this photograph, User is consenting to the terms and conditions of the Getty Images License Agreement.  (Photo by Christian Petersen/Getty Images) Getty Images

    With Fred Hoiberg being tabbed the frontrunner for the Bulls job, Hornacek’s name has come up as a possible replacement in Ames.

  5. San Diego, San Diego State to play December 5 at Petco Park

    May 29, 2015, 2:01 PM EDT

    Steve Fisher AP

    The last time these two teams met at a neutral site was back in 1992.

  6. Former Ole Miss center to visit Kansas this weekend

    May 29, 2015, 12:54 PM EDT

    AP Photo AP

    Kansas also has plans to host former Providence center Paschal Chukwu in early June.

  7. Former Vanderbilt player Dai-Jon Parker dies in boating accident

    May 29, 2015, 9:36 AM EDT

    Chris Denson, Dai-Jon Parker AP

    Dai-Jon Parker played this past season at the University of Indianapolis.

  8. Former Michigan forward Max Bielfeldt holding off on school decision

    May 28, 2015, 9:02 PM EDT

    AP Photo AP

    Fred Hoiberg’s status has impacted recruiting in multiple cases for Iowa State this spring.

  9. Big 12 Tournament to remain in Kansas City through 2020

    May 28, 2015, 7:43 PM EDT

    Bob Bowlsby, Fred Hoiberg Bob Bowlsby, Fred Hoiberg

    Big 12 tournaments held at the Sprint Center have averaged more than 18,000 fans per session.

  10. SEC announces new men’s basketball scheduling format

    May 28, 2015, 6:41 PM EDT

    SEClogo

    Each team will have three “permanent” opponents they’re guaranteed to play twice every season.

  11. Misdemeanor charges against VCU’s Mo Alie-Cox dropped

    May 28, 2015, 5:46 PM EDT

    AP Photo AP

    Video surfaced showing that Alie-Cox wasn’t involved in the incident, contradicting a woman’s claim that he punched her in the face.

  12. Former VCU forward transferring to UConn

    May 28, 2015, 4:04 PM EDT

    Getty Images Getty Images

    UConn’s now added three transfers to the program this spring, two of whom will be eligible immediately as graduate students.

  13. Former Clemson coach Bill Foster dies at 79

    May 28, 2015, 3:24 PM EDT

    ClemsonTigers.com ClemsonTigers.com

    Foster led Clemson to their only Elite 8 appearance in program history.

  14. North Carolina to visit Northern Iowa in homecoming game for Marcus Paige

    May 28, 2015, 2:07 PM EDT

    Getty Images Getty Images

    Paige went to high school an hour from UNI’s campus.

  15. #FredHoibergWatch officially commences today, as Bulls fire Thibodeau

    May 28, 2015, 1:15 PM EDT

    AP Photo AP

    Iowa State fans shouldn’t freak out too much.

  16. Throwback Thursday: That time Matthew Dellavedova beat BYU at the buzzer (VIDEO)

    May 28, 2015, 12:24 PM EDT

    Getty Images Getty Images

    Dellavedova was a star with the Gaels before he became this year’s NBA Playoff star.

  17. Walter Byers, former NCAA director who coined ‘student-athlete’, dies at 93

    May 28, 2015, 10:47 AM EDT

    AP Photo AP Photo

    Byers created the term “student-athlete” and first sold TV rights for NCAA broadcasts, but later wrote a book blasting the NCAA for exploiting athletes.

  18. Big 12 schools to face penalties for court storming

    May 28, 2015, 9:52 AM EDT

    KANSAS CITY, MO - MARCH 22: Fans wear full bodysuits that read 'Airhead Moment' in the first half of the game between the Kansas State Wildcats and the La Salle Explorers during the second round of the 2013 NCAA Men's Basketball Tournament at the Sprint Center on March 22, 2013 in Kansas City, Missouri.  (Photo by Jamie Squire/Getty Images) Getty Images

    This is a step in the right direction by the Big 12.