Update Report: PT Kizone (Indonesia)

To:WRC Affiliate Universities and Colleges
From:Scott Nova and Jess Champagne
Date:May 15, 2012
Re:Update Report: PT Kizone (Indonesia)  

Please find here an update report concerning the PT Kizone case in Indonesia, where more than 2,600 workers are still without the majority of their legally mandated severance.

This report covers:

  • The status of bankruptcy proceedings
  • The recent distribution of a small contribution of $55,000 to the workers from the Dallas Cowboys
  • The current position of adidas, the only university-connected company that has failed to contribute financially to make the workers whole. We include:
    • An analysis of adidas’ claims concerning its obligations under university codes of conduct
    • An assessment of adidas’ actions on the case to date
    • An assessment of four prior severance cases in Indonesia in which adidas took the same approach and in which 19,500 workers were never paid their legally mandated compensation
  • The situation currently facing workers and their families, who are suffering severe hardship as a result of these violations 

We continue to recommend that adidas act responsibly and pay the workers the funds they are still owed. Absent such action, the PT Kizone case will end in the same way as other cases involving non-payment of compensation to workers who made clothes for adidas: without workers ever receiving the compensation they are lawfully due.

As always, please contact us if you have any thoughts or questions concerning the information contained in this report.

Scott Nova 
Worker Rights Consortium 
5 Thomas Circle NW 
Washington DC 20005 
ph 202 387 4884 
fax 202 387 3292 
[email protected]