Allegations Of Workers' Rights Abuses Could Force U of Wisc. Decision On Adidas

Monday, January 9, 2012

UW-Madison officials may soon be faced with a decision about what to do with its exclusive uniform provider, Adidas, as new information continues to emerge about alleged workers' rights abuses at an Indonesian factory.

A watchdog group said Adidas is "misleading" universities concerning its relationship with the factory, PT Kizone.

The factory owner fled in January 2011 after reportedly failing to pay 2,800 workers an estimated $3.2 million in severance. Adidas claims it doesn't need to make severance payments because it cut ties with the factory before the violations occurred.

But the Worker Rights Consortium disputes that claim in an update issued Thursday. The report found that Adidas was still listing the factory as a supplier in January 2011.

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