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. CAA Rookie of the Year transfers to BYU

    Jul 28, 2015, 10:04 PM EDT

    Getty Images Getty Images

    Elijah Bryant will have three years of eligibility remaining.

  2. Arkansas forward Jacorey Williams linked to pair of alleged assaults

    Jul 28, 2015, 8:43 PM EDT

    AP AP

    The Arkansas forward was charged with one count of forgery last week.

  3. Texas Tech commit to attend junior college

    Jul 28, 2015, 7:45 PM EDT

    Kelly Kline/adidas Kelly Kline/adidas

    The three-star forward failed to qualify earlier this month.

  4. Arizona State receives commitment from three-star center Jethro Tshisumpa

    Jul 28, 2015, 6:21 PM EDT

    AP AP

    Bobby Hurley off to a good start in his new gig in Tempe.

  5. John Calipari says 2016 “could be best class ever”

    Jul 28, 2015, 6:00 PM EDT

    AP AP

    Tai Wynyard of New Zealand is the only commit currently in Kentucky’s Class of 2016.

  6. Michigan lands commitment from 2016 guard Ibi Watson

    Jul 28, 2015, 5:15 PM EDT

    AP Photo AP

    John Beilein gets his third commitment for 2016.

  7. Another mixtape for July’s biggest stock-riser, Wenyen Gabriel (VIDEO)

    Jul 28, 2015, 4:00 PM EDT

    Screen Shot 2015-07-27 at 2.15.47 PM

    If you can do things like this, you can play for Duke or Kentucky.

  8. If the NCAA is correct, Donnie Tyndall is in big, big trouble

    Jul 28, 2015, 3:58 PM EDT

    Donnie Tyndall AP

    The accusations against him include burner phones, hiding IP addresses and his mother’s cell.

  9. Tracy Abrams suffers second season-ending injury in 10 months

    Jul 28, 2015, 1:34 PM EDT

    AP Photo AP

    Abrams was projected as the starting point guard for Illinois.

  10. Ben Howland’s first non-conference schedule at Mississippi State is unimpressive

    Jul 28, 2015, 1:03 PM EDT

    AP Photo AP Photo

    The Bulldogs aren’t guaranteed to play a top 25 team until SEC play.

  11. Highlights of Bol Bol, 15 year old son of Manute Bol (VIDEO)

    Jul 28, 2015, 10:49 AM EDT

    Screen Shot 2015-07-28 at 10.49.06 AM

    He is talented, just don’t call him the next Kevin Durant.

  12. Video tour of VCU’s new $25 million practice facility

    Jul 28, 2015, 10:12 AM EDT

    cd0ymzcznguwzdbhnduynddiytjhm2yyzthlmtjjotqwyyznpwi3otuyzgqyymy0yzdhm2mzntk2mzg5zmrlnzczm2vm AP

    Will Wade will have a beautiful facility to recruit to.

  13. Kansas, Indiana on opposite sides of 2015 Maui Invitational bracket

    Jul 27, 2015, 8:12 PM EDT

    AP AP

    Potentially four top-25 teams will be in the 2015 field.

  14. Colorado State’s Antwan Scott granted sixth year of eligibility

    Jul 27, 2015, 5:51 PM EDT

    Grambling State Grambling State

    Scott averaged 15.7 points per game for Grambling during the 2013-14 season.

  15. Nik Stauskas trolls Ohio State fans, claims Thad Matta didn’t know who he was (PHOTO)

    Jul 27, 2015, 5:18 PM EDT

    Getty Images Getty Images

    The former Big Ten Player of the Year (inaccurately) trolls Ohio State fans

  16. Top two 2017 recruit Michael Porter Jr. dunks all weekend (VIDEO)

    Jul 27, 2015, 3:45 PM EDT

    Screen Shot 2015-07-27 at 10.29.28 AM

    It’s pretty obvious why people like Porter.

  17. Highlights of Wenyen Gabriel, who’s been offered by Kentucky, Duke (VIDEOS)

    Jul 27, 2015, 2:17 PM EDT

    Screen Shot 2015-07-27 at 2.15.47 PM

    Gabriel was the biggest stock riser for the month.

  18. Ron Baker was the best college player for Team USA at Pan-Am Games

    Jul 27, 2015, 1:51 PM EDT

    baker Getty Images

    Denzel Valentine and Taurean Waller-Prince also played well in stretches.