Adidas has agreed to compensate 2,800 Indonesian clothing workers owed US$1.8m in severance pay following the closure of the Kizone sportswear factory.
International campaigners and workers have claimed victory in forcing the German sportswear giant to settle with workers who have been fighting for the money owed to them since April 2011, when the factory closed and was declared bankrupt.
While the contents of the agreement remain confidential, the former workers will receive a substantial sum from Adidas, it is reported. The settlement puts an end to the dispute following Adidas’s earlier refusal to pay US$1.8m in severance pay.
For the full story, see the June 2013 edition of Textiles South East Asia. Not a subscriber? Subscribe HERE