April 25, 2013 - 2:02am
Adidas settles with workers at PT Kizone
BY AARON GUGGENHEIM
After two years of facing protests, Adidas, the official supplier of University athletic apparel, has agreed to pay $1.8 million in severance to 2,800 garment workers who manufactured collegiate gear at an Adidas factory, PT Kizone, in Indonesia. The company fought against payment of its subcontracted workers following the sudden closure of the factory.
The issue has been prominent at the University as the Adidas manufactures all University athletic apparel, holding a $60 million contract — the largest collegiate athletic apparel contract held by Adidas.
Although University President Mary Sue Coleman wrote a letter to Adidas America President Patrik Nilsson expressing concern about the labor situation and asking for monthly reports, the University had taken no further action against the company.
Members of the University chapter of United Students Against Sweatshops had organized a protest at in March, advocating the University to join 17 other universities in cutting ties with Adidas over their treatment of workers by not renewing the apparel contract in 2014.
While the details of the settlement were not released, workers from PT Kizone said they would receive a significant sum from Adidas.
