Continuous critic over the working conditions at the subcontractors working for big textile firms, notably in Bangladesh and Indonesia, has caused Adidas, the German company and second largest sportswear manufacturer in the world, to suggest, on October 4, creating a joint assistance fund financed by the sector's businesses to help textile workers affected by "non-payment of wages and benefits." The founding modalities should be debated at a conference at the end of this month in Switzerland. Organized by the Fair Labor Association (FLA). This conference should bring together several international sportswear manufacturers, financial institutions and insurance experts. Clean Clothes Campaign is not convinced by this initiative. (Ref. 120608)
Joint approach. When their company goes bankrupt, workers in Bangladesh or Indonesia often find themselves in a tragic financial situation, with no layoff benefits and months of unpaid wages. To better protect these workers, the German sportswear manufacturer, Adidas, which has relocated almost all production activities abroad and works with over 1,200 subcontractors, mostly operating in China, India, Indonesia, Thailand or Vietnam, wants to create a private insurance fund financed by the sector’s businesses.
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