adidas navy trainers Adidas tells student groups they do not intend to pay severance to workers
Adidas representatives, Gregg Nebel and Paul Loving, visited the school after EMU officials sent a letter to the company inquiring about its practices. This was the latest event in a campaign by EMU student organization, Students for an Ethical and Participatory Education, to convince EMU officials to sever the school’s contract with Adidas for its refusal to pay the former workers.
According to the Echo, EMU’s contract with Adidas goes through 2015 and grants EMU a 45 to 50 percent discount on its purchases.
The Michigan Daily reported that Nebel also met with University of Michigan students to discuss the issue last March and that meeting ended when students asked Nebel to leave.
U M President Mary Sue Coleman wrote a letter to adidas in September, urging the company to ensure that the workers receive their severance pay.
U M’s contract with adidas is worth roughly $60 million.
From the linked article, it sounds like the owners of the factory did not pay the workers, and it was their responsibility by law.
So as an example, if I use Comcast for my small business, and Comcast fires all it employees and disappears. They do not pay their legally mandated severance pay, and the owners put the cash in a briefcase and disappear to another country.
You telling me my customers would get upset if I didn pay Comcast worker severance pay? How does that make any sense? Sure,
saying, use untrustworthy sources is a great and honorable thing, but unless they can show Adidas had previous, malicious knowledge of the situation, then a boycott / contract change is completely unreasonable.
I will accept there may be a lot more to this story this article is just links and the EMU story has no quotes from Adidas and six from EMU anti Adidas representatives. Something smells funny, but I not afraid to attribute this to over zealous, ambitious young folks. That path to hell.
Me too. Here is the most important part of all this hoopla:
Nebel said Adidas supports the workers being paid their severance, but that ultimately PT Kizone, not Adidas, is responsible for the severance. He added that since the factory closure, approximately 300 of the workers have been rehired by other Adidas suppliers and 950 total have been reemployed. He noted that Adidas is working on finding jobs for the other workers without jobs.
Just what I thought, why would Adidas be responsible for this company severance obligations? If this is true,
they are assisting laid off workers in finding new jobs.