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14 May 2025 285 organizations around the world are calling for: Pay Your Workers – Respect Labour Rights

Press release by

Amsterdam/Florence/Cologne. The campaign for clean clothing, shareholders for change and the umbrella organisation of critical shareholders call on Adidas AG to comply with workers' rights in the global supply chain before the Annual General Meeting on May 15. Workers in Myanmar and Cambodia report human rights violations such as wage theft, illegal layoffs and obstruction of trade union activities.

Intimidation and discrimination continue in Myanmar

In October 2022, 2,000 workers at the Pou Chen factory in Myanmar went on strike to demand better working conditions, higher wages and the right to unionisation, after which trade union leaders and protesting workers were dismissed. In protracted negotiations, half of the dismissed workers were able to be reinstated in 2023, after which Adidas described the case as ‘solved’. However, intimidation and discrimination continued and workers continue to face starvation wages – the reason why the protests broke out in the first place. Three years later, the workers of Pou Chen earn 7,233 MMK (3 €) per day or about 230,000 MMK (97 €) per month. That's less than 30% of an estimated living wage in Myanmar. Nevertheless, Adidas refuses to resolve this situation.

Wages theft in Cambodia

During the COVID-19 pandemic, 500 workers at the Hulu garment factory in Cambodia were deprived of their jobs through fraudulent practices. They were tricked into signing their notice letters under the pretext of signing their pay slips, thereby waiving over $1 million in severance pay. Despite years of efforts to get compensation, Adidas refuses to take responsibility.

International Solidarity and Appeals to Adidas

On 16 May 2024, Cambodian union leader Sithyneth Ry, representing the workers of Hulu Garment, spoke at the Adidas General Assembly and described the situation of the workers concerned. He called on the company to sign the ‘Pay Your Workers’ agreement, which provides for a severance guarantee and protection of freedom of association for all workers throughout the supply chain of each brand that signs the agreement. Despite these appeals and the proven theft of severance payments in its supply chain, Adidas refuses to sign the agreement.

Support for the Pay Your Workers Agreement

Together with 285 organisations worldwide, we are calling for the signing of the binding agreement ‘Pay Your Workers – Respect Labour Rights’ (PYW-RLR)’, said Mauro Meggiolaro, Coordinator of the Shareholders for Change Network, and Markus Dufner, Managing Director of the Critical Shareholders’ Association. It obliges Adidas, together with its suppliers, to take responsibility for the payment of wages and severance payments as well as compliance with trade union rights. This agreement provides a structured approach to protecting the fundamental rights of workers who receive statutory compensation in the event of loss of their job. The proposal stems from major supply chain disruptions during the coronavirus pandemic. Given the recent supply chain upheavals caused by the tariff war with the US and the expected supply chain disruptions caused by the climate crisis, it is all the more urgent that workers' livelihoods be protected when their factory is closed because production is stopped or moved elsewhere.

contact

Clean clothes campaign
Telephone: +31-20-412-27-85
This email address is being protected from spambots. You need JavaScript enabled to view it.

Association of Critical Shareholders,
Markus Dufner
Mobile tel. +49-173 713 52 37, This email address is being protected from spambots. You need JavaScript enabled to view it.

Shareholders for Change
Mauro Meggiolaro, Coordinator SfC
This email address is being protected from spambots. You need JavaScript enabled to view it.