Read the final statement published by the German NCP - 24 April 2020
Read the follow up statement published by the German NCP - 28 June 2021
On 19 March 2018, NGOs, Südwind Institute, Sedane Labour Resource Centre and Clean Clothes Campaign, submitted a specific instance alleging that Adidas did not observe the OECD Guidelines. The submitters asserted that the respondent did not adequately use its leverage, as a buyer in relation to alleged anti-union behaviour, layoffs, and wage matters that took place in January 2012 at a factory that operated as a subcontractor for the respondent’s main shoe manufacturing partner in Indonesia.
On 27 July 2018, the NCP finalised its initial assessment and accepted the case for further examination, noting that issues regarding wages, the right to work and freedom of association as well as related due diligence merited further examination, but only as they relate to the time when the respondent had a sourcing relationship with the subcontractor, which was up until May 2012.
Following the parties’ acceptance of the NCP’s offer of good offices, the NCP undertook mediation between the parties. While the issues concerning wages were resolved, no agreement could be reached concerning the allegations dealing with the alleged freedom of association violations.
Despite extensive efforts, no common understanding could be reached between the parties. As the degree of goodwill and relations between the parties did not allow for an agreement to be reached, the NCP decided to conclude the mediation with its final statement on 24 April 2020.
In its final statement, the NCP recommended that the company review its reporting and complaint channels in the context of freedom of association and that the submitter could contribute to the company’s recommended review of its due diligence procedures.
On 28 June 2021, the NCP published a follow up statement to report on the progress made by the parties following the recommendations. During the follow up procedure, the submitting party provided proposals for the company to enhance its reporting and complaint channels. The company developed activities in response to two proposals, including the modification of its reporting channels. The company did not report on other aspects of the discussions and recommendations.