Nike, Adidas under scanner for paying less to workers making kits for FIFA World Cup ’18

Factory worker
Image Courtesy: betterwork.org

Athleisure and sportswear behemoths, Adidas and Nike have are under the fire after a recent report by Clean Clothes Campaign (CCC), a coalition of labour unions and NGOs that works for the improvement of the factory workers in garment and sportswear industries, alleged unfair pay.

The report says that the two sportswear brands are not paying their female garment workers decent wages. Reportedly, these workers are involved in the production of apparel and footwear for the soccer players and support staff of teams.

Notably, FIFA World Cup 2018 is about to kick off tomorrow and Adidas and Nike are responsible for kits of 22 teams out of the 32 participants in the tournament.

CCC’s report, ‘Foul Play’ marked out the comparison between production costs incurred by both the brands in current time and that of 25 years ago which revealed that 30 per cent lesser share now goes into a worker’s pocket as compared to what was given to them in the early 1990s.

Markedly, most of the sports apparel of Adidas and Nike are produced in Indonesia, where 80 per cent of the garment workers are women.

Female garment workers earn around 82 to 200 Euro per month which is significantly below the minimum wage set by Asia Floor Wage that suggests 363 Euro as the minimum wage for workers to cover basic needs.

Adidas and Nike both responded to the ‘Foul Play’ report and ensured to provide the fair wage to their factory workers.

Reportedly, Nike spoke on the issue and said that the company is ready to work with the Government, manufacturers, NGOs, factory workers and unions to assist a systematic change. While Adidas also committed to provide safe working conditions to its workers throughout its supply chain.

The CCC report also mentioned that Adidas and Nike signed an agreement in 2011 on trade unions’ rights in Indonesia and now they must follow-up on the pledge to deal with job security and minimum wage issues.