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CCC et al. vs Adidas

Case overview

Date filed 14 March 2018
Current status Presentado
Issue Labour rights violations at Adidas Indonesian supplier
Summary of the case The SÜDWIND Institute, Sedane Labour Resource Centre and Clean Clothes Campaign allege that German sportswear brand Adidas Group, a signatory of the Freedom of Association Protocol and member of the German Alliance for Sustainable Textiles, was originally “directly linked” to serious human rights impacts against workers in Indonesia, but should now be considered to have “contributed” to the ongoing impacts by continuing to do business with the company owning the factory but failing to take sufficient action to encourage its business partner to provide remedy to workers.

According to the complaint, in July 2012, 2,000 workers at the PT. Panarub Dwikarya factory (part of the Panarub Group) in Indonesia went on strike to protest several negative human rights abuses by the factory. The factory responded by dismissing 1,300 of the workers, 327 of whom have still not, to date, received their severance pay. In October 2016, the ILO Committee on Freedom of Association declared the dismissals a violation of the right of freedom of association, prompting several negotiations between the government, union, and PT Panarub Industry. The complaint asserts these negotiations were conducted in bad faith, ended without result, and thus left workers without remedy for the harms they had suffered and continue to suffer.

Critically, the complaint asserts that before, during, and after the strike and related events, Adidas has sourced goods from the Panarub Group, maintained Panarub Group as an important business partner, and failed to take adequate action to prevent or mitigate the human rights impacts.

The complaint makes two allegations. First, the complaint alleges that because Adidas had a direct business relationship with Panarub Group and produced its product at the factory itself when the strike occurred, Adidas was “directly linked” to the negative human rights impacts. Adidas thus had a responsibility to seek to prevent or mitigate the risk from continuing or recurring. The complaint notes such responsibility would exist whether or not Adidas also “contributed” to the harms. The complaint asserts that Adidas was well aware of the initial rights violations as well as subsequent failures to provide remedy for workers. The complaint alleges, however, that instead of acting to fulfil its obligation to prevent or mitigate the harm, Adidas tolerated the anti-union attitude of its supplier by condoning the bad faith negotiations and failing to engage itself in the negotiations or otherwise to use its notable leverage with the company to seek remedy for workers.

Additionally, the complaint alleges that Adidas has also “contributed” to the continuation of the human rights impacts by, once becoming aware of the negative human rights impacts, continuing its business relationship with the Panarub Group without taking adequate action to prevent or mitigate the harms, and by failing to provide remedy to the workers. In such case, the complaint argues that Adidas’ failure to respond appropriately to the harms has rendered its continued business relationship with Panarub Group a contribution to the negative human rights impacts.
Relevant OECD Guidelines
Case keywords Cadena de suministro, Los derechos laborales, Textiles / Indumentaria

NCP Information

NCP name National Contact Point Germany
NCP address Scharnhorststrasse 34-37 10115 Berlin, Germany
NCP website
Other NCPs involved



Company Information

Company responsible
Company address
Company website
Company in violation Adidas-Salomon AG
Country of operations Indonesia
Other companies involved

Timeline of developments

Date Actor Action Description Document
14 March 2018 SÜDWIND – Institut für Ökonomie und Ökumene presentar Complaint filed with the German NCP download pdf (278Kb)  

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