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Adidas to pay “substantial” compensation to factory workers

Adidas is to pay a “substantial” amount of compensation to workers at a factory in Indonesia following its closure.

The PT Kizone factory closed abruptly in April 2011 leaving 2,800 garment workers out of work and owed $1.8m (£1.2m) in severance pay.

It is not clear how much of this the German sportsbrand has paid, although campaign groups called the figure “substantial”.

The campaign was headed by Kizone workers in Indonesia and labour rights activists including the Clean Clothes Campaign in Europe, People and Planet, SumOfUs.org and War on Want .

Sam Maher from Labour Behind the Label, said: “The success of this campaign shows the power of worker solidarity and indicates what international consumer pressure can achieve.

“This case sets a precedent, and is the first time that Adidas has paid severance to workers.

“There is enormous power when unions, workers and consumers unite, and it’s time that global brands take responsibility and respect the human rights of the workers throughout the entirety of their supply chain.”

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