In a letter dated 30th May, 2023, unions endorsed Adidas’ pledge to donate Yeezy sneaker sales revenues to organisations that combat prejudice and hatred. The Coalition of Cambodian Apparel Workers Democratic Union in Cambodia, the Free Trade Zones & General Service Employees Union in Sri Lanka, the Bangladesh Garment and Industrial Workers Federation in Bangladesh, Workers United in the USA, and the Union Pay Your Workers – Respect Labour Rights (PYW-RLR) Committee all signed the open letter.
They claim that workers in many different industries, including those responsible for making Adidas items, were affected by the Covid-19 pandemic. The unions draw attention to problems including unpaid wages during lockdowns and the absence of severance pay for employees who lose their employment. They emphasise that attempts to bargain with employers about outstanding severance and back wages have been faced with growing restrictions on fundamental trade union rights.
The unions suggest Adidas give a share of the Yeezy shoe sales revenues to a ten-year commitment under the PYW-RLR agreement to allay these worries. In addition to establishing a global guarantee fund for future severance payments, the pact intends to combat wage and severance theft brought on by the pandemic.
By doing this, Adidas would contribute to resolving the long-standing problem of severance theft in the clothing, footwear, and textile industries and ensure that employees are not left in a desperate situation when factories close down or carry out large layoffs without offering enough compensation.
According to the unions, the cost for Adidas to join in the PYW-RLR agreement would be less than 3 per cent of the US $ 1.2 billion estimated worth of the Yeezy shoes.
In order to further improve industrial relations, the PYW-RLR agreement explicitly emphasises the need to look into and redress abuses of workers’ rights to organise and engage in collective bargaining. The unions said they were ready to have direct talks with CEO Bjørn Gulden and that they were open to his ideas for the proposed deal.
