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The complaint was directed towards Nike representations in Austria as well as towards its headquarter in the US. The complaint alleges that Adidas’ suppliers in Indonesia are violating labour rights. Specifically, workers have been denied the right to organize and to collective bargaining. They have been subjected to intimidation ranging from humiliation, arbitrary arrests and threats to their health and safety. As a result, workers are unwilling to speak out about abuses out of fear of retaliation. In addition, workers do not receive a living wage. The low wages impacts parents, particularly women, who are frequently forced to live away from their children. The complaint also raises occupational health and safety issues.
After receiving the case from the Austrian NCP, the US NCP rejected the case. The NCP concluded that the information available did not indicate that its involvement was needed. The US NCP asserted that Nike’s conduct is being effectively addressed through other appropriate means and that the company has demonstrated its commitment to an ongoing, collaborative process to improve working conditions, for example, through its participation in the Fair Labour Association.
OECD Watch case story page: http://oecdwatch.org/cases/Case_26