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. Kansas State loses redshirt freshman to transfer

    Oct 20, 2014, 11:00 PM EDT

    La Salle v Kansas State Getty Images

    Kansas State is losing a redshirt freshman to transfer.

  2. Virginia lands four-star guard from 2016 class

    Oct 20, 2014, 10:00 PM EDT

    (adidas) (adidas)

    Virginia got a very skilled guard in the 2016 class.

  3. Florida lands three-star 2015 wing

    Oct 20, 2014, 9:15 PM EDT

    Billy Donovan AP

    Florida landed an in-state Class of 2015 wing to make it a four-man class.

  4. Memphis grabs a commitment from a 2016 guard

    Oct 20, 2014, 9:00 PM EDT

    Josh Pastner AP

    Memphis found a 2016 guard to join center Nick Marshall in the recruiting class.

  5. Report: SMU big man has work to do to be eligible for season

    Oct 20, 2014, 8:00 PM EDT

    Markus Kennedy AP

    SMU could be in trouble if a second-team all-league pick is ruled ineligible.

  6. Washington adds two forwards in 2015 class

    Oct 20, 2014, 6:00 PM EDT

    Indian Hills Community College Indian Hills Community College

    Lorenzo Romar now has a six-man recruiting class for 2015.

  7. Top 25 Countdown: No. 15 Oklahoma Sooners

    Oct 20, 2014, 5:00 PM EDT

    Buddy Hield (AP Photo) Buddy Hield (AP Photo)

    Oklahoma has a chance to be the second-best team in the Big 12, especially if a key player receives a waiver.

  8. St. Joseph’s loses another front court piece for the 2014-15 season

    Oct 20, 2014, 4:00 PM EDT

    Phil Martelli AP

    The Hawks will have a thin front court this season.

  9. 2014-2015 Season Preview: Which new coaching hires will succeed?

    Oct 20, 2014, 3:00 PM EDT

    Steve Wojciechowski AP

    Five new hires that should thrive, and five who may end up struggling.

  10. Report: Former Oklahoma State guard leaves his junior college

    Oct 20, 2014, 2:09 PM EDT

    Stevie Clark, Jevon Taylor AP

    Stevie Clark was dismissed from Oklahoma State after a pair of bizarre incidents involving the police.

  11. Maryland lands commitment from junior college point guard

    Oct 20, 2014, 12:45 PM EDT

    Mark Turgeon

    Jaylen Brantley is Maryland’s first commitment in the class.

  12. No longer supplementary pieces, two Texans will lead the way at Weber State

    Oct 20, 2014, 12:00 PM EDT

    Randy Rahe AP

    After riding the coattails of a pair of Californians, Weber State’s focus on recruiting the state of Texas will pay off this season.

  13. Former NBA guard says Emmanuel Mudiay ‘handled himself well’ in first game in China

    Oct 20, 2014, 10:39 AM EDT

    unnamed-1

    Mudiay has now played two preseason games as a professional.

  14. 2014-2015 Season Preview: Weber State won’t lack for challengers in Big Sky

    Oct 20, 2014, 9:00 AM EDT

    Weber State's Joel Bolomboy (AP Photo) AP

    Weber State will be the preseason favorites, but Northern Arizona, Sacramento State and Eastern Washington will lead a group of challengers capable of pushing the reigning champs.

  15. Highlights from San Francisco’s ‘Hilltop Hoopsfest’ event (VIDEO)

    Oct 19, 2014, 10:57 PM EDT

    Rex Walters AP

    Junior forward Mark Tollefsen may be one of the best dunkers in America.

  16. Louisville takes next step in season preparations with their annual Red-White Scrimmage

    Oct 19, 2014, 8:49 PM EDT

    Chris Jones, Dillon Avare Chris Jones, Dillon Avare

    Chris Jones’ three-pointer in the final seconds gave the White team a 75-72 win over the Red.

  17. Fractured foot to sideline Maryland forward 4-6 weeks

    Oct 19, 2014, 6:59 PM EDT

    Evan Smotrycz AP

    Evan Smotrycz was re-evaluated Saturday after suffering the injury at the end of practice Friday.