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. New mixtape of 2016 guard Kwe Parker is ridiculous (VIDEO)

    Sep 1, 2014, 9:45 PM EDT

    (Nike) (Nike)

    Kwe Parker is one of the best dunkers in all of basketball and he shows why in this new mixtape.

  2. Report: Arizona State gives Herb Sendek a contract extension

    Sep 1, 2014, 8:20 PM EDT

    Herb Sendek AP

    Arizona State has given head coach Herb Sendek an extension.

  3. East Carolina nabs a local 2015 wing

    Sep 1, 2014, 6:55 PM EDT

    jeff lebo Getty Images

    East Carolina is on the board in 2015.

  4. Five-star 2015 forward cuts his list to five schools

    Sep 1, 2014, 5:28 PM EDT

    (adidas Gauntlet) (adidas Gauntlet)

    A five-star 2015 forward cut his list to five schools on Monday.

  5. Indiana freshman is currently in a walking boot

    Sep 1, 2014, 4:20 PM EDT

    Tom Crean AP

    Indiana will have to remain patient with a freshman that is currently battling an ankle injury.

  6. Assembly Hall as a groom’s cake? Why not! (PHOTO)

    Sep 1, 2014, 2:20 PM EDT

    @Kschack1 @Kschack1

    You need a very understanding wife to get away with this.

  7. Tennessee adds second commitment in two days with three-star guard

    Sep 1, 2014, 2:20 PM EDT

    Murray St Morehead St Basketball

    Tennessee has one scholarship left available for 2015.

  8. Top talent in 2016 announces a top ten

    Sep 1, 2014, 12:54 PM EDT

    Nike Nike

    Find out why Saint Louis and Missouri are on the list along with the likes of Arizona, Kentucky, Duke and Kansas.

  9. Tom Izzo calls PGA Tour caddie after wife passes away

    Sep 1, 2014, 12:30 PM EDT

    Tom Izzo Tom Izzo

    Izzo spoke on the phone with the caddie for 15 minutes.

  10. Mixtape for top 50 center Marques Bolden (VIDEO)

    Sep 1, 2014, 11:39 AM EDT

    Screen Shot 2014-09-01 at 11.38.38 AM

    Bolden is a 6-foot-9 center from Texas

  11. Ohio senior forward contributes to Senegal’s first FIBA worlds victory since 1998

    Aug 31, 2014, 11:43 PM EDT

    Maurice Ndour AP

    The second team All-MAC selection scored eight points in Senegal’s win over Puerto Rico.

  12. In-state forward becomes Kansas State’s second commitment in four days

    Aug 31, 2014, 10:25 PM EDT

    Bruce Weber AP

    Bruce Weber now has three verbal commitments in the Class of 2015.

  13. Nebraska lands commitment from four-star point guard

    Aug 31, 2014, 9:05 PM EDT

    Tim Miles AP

    5-foot-11 point guard Glynn Watson becomes Nebraska’s second 2015 commitment.

  14. Five-star 2015 small forward cuts list to six schools

    Aug 31, 2014, 8:02 PM EDT

    Kelly Kline/adidas Kelly Kline/adidas

    Slender forward Brandon Ingram is one of the best perimeter prospects in the Class of 2015.

  15. Illinois native becomes Tennessee’s first 2015 commitment

    Aug 31, 2014, 6:20 PM EDT

    cd0ymzcznguwzdbhnduynddiytjhm2yyzthlmtjjotqwyyznpte3owi1njbhnjg0mtc2yjbkzdgzmdzhnzm2mtbjytc1 AP

    Tennessee is on the board in 2015 due to the addition of a versatile 6-foot-5 forward.

  16. North Carolina accepts their head coach’s challenge (VIDEO)

    Aug 31, 2014, 5:23 PM EDT

    Marcus Paige AP

    Roy Williams challenged his players in the Bahamas, and the accepted it on Saturday afternoon.

  17. Malik Newman to narrow list soon, won’t announce until after season

    Aug 31, 2014, 3:39 PM EDT

    Malik Newman (Getty Images) Getty Images

    Malik Newman is the No. 3 overall recruit, according to Rivals.

  18. Twin brothers commit to Quinnipiac

    Aug 31, 2014, 1:35 PM EDT

    Quinnipiac Athletics Quinnipiac Athletics

    The Robinson brothers are the first two commits in Quinnipiac’s Class of 2015.

  19. Four-star guard New Williams commits to Bruce Pearl and Auburn

    Aug 31, 2014, 10:17 AM EDT

    AP Photo AP

    Bruce Pearl has landed five commitments in 10 days.