Source
Comments
FORCED LABOUR:
MSA Transparency Statement links to webpage (https://www.adidas-group.com/en/sustainability/social-impacts/human-rights/#/human-rights/):
- "adidas strictly prohibits the use of any form of forced labor or the trafficking in persons across all of our company operations and in our global supply chain. We treat forced labor, human trafficking and slavery with a zero-tolerance approach. Business relationships can be impacted if such issues are found and can lead to enforcement action, warning letters and, if timely remedies are not offered, to the termination of contracts."
- "Our approach to managing and eradicating forced labor from our operations include the implementation of our Modern Slavery Policy (first published in 2010), which ensures a tailored, risk based due-diligence process, risk assessment, regular monitoring activities and performance measurements as well as designing and delivering targeted training and capacity building. Since 2017, we have focused our efforts on implementing a recruitment approach that ensures migrant workers retain control of their travel documents, have freedom of movement and are free from debt-bondage and other unacceptable financial costs."
CHILD LABOUR:
MSA Transparency Statement links to webpage (https://www.adidas-group.com/media/filer_public/23/b4/23b41dce-85ba-45a7-b399-28f5835d326f/adidas_workplace_standards_2017_en.pdf):
- "Business partners must not employ children who are less than fifteen (15) years old, or less than the age for completing compulsory education in the country of manufacture where such age is higher than fifteen (15)."
RECRUITMENT FEES:
MSA Transparency Statement links to webpage (https://www.adidas-group.com/media/filer_public/13/5a/135a8242-c209-4de4-b858-5861fad7071f/policy_on_responsible_recruitment_2019.pdf):
- "No recruitment fees or related costs should be charged to, or otherwise borne by, workers."
SUPPLIERS PROTECT MIGRANT WORKERS:
MSA Transparency Statement links to webpage (https://www.adidas-group.com/media/filer_public/13/5a/135a8242-c209-4de4-b858-5861fad7071f/policy_on_responsible_recruitment_2019.pdf):
- "The terms and conditions of employment should be through written contracts in
accordance with national laws, regulations, employment contracts and applicable collective
agreements."
- "Freedom of workers to move within a country or to leave a country should be respected.
Workers’ identity documents such as passports, land title deeds, diplomas, employment contracts
and so on should not be confiscated, destroyed or retained."
- "At the end of the contract, and where there is no extension, in the absence of any other
contractual or legal obligation, the factory covers the costs of the migrant workers’ return home."
LABOUR RIGHTS:
MSA Transparency Statement links to webpage (https://www.adidas-group.com/media/filer_public/23/b4/23b41dce-85ba-45a7-b399-28f5835d326f/adidas_workplace_standards_2017_en.pdf), and covers:
- wages, benefits and compensation
- working hours
- freedom of association & collective bargaining
- disciplinary actions
- health & safety
CODE OF CONDUCT:
Adidas describes in its MSA Transparency Statement the following link as a 'code of conduct': https://www.adidas-group.com/media/filer_public/23/b4/23b41dce-85ba-45a7-b399-28f5835d326f/adidas_workplace_standards_2017_en.pdf
CONTRACTS:
There was no mention in the MSA Transparency Statement of supplier contracts.
SUB-CONTRACTS:
The MSA Transparency Statement makes the following statement on page 3:
- "Suppliers are also expected to apply appropriate due diligence measures to their subordinate subcontracting relationships to prevent and mitigate human and labour rights issues, including forced labour."
It is unclear if this means suppliers produce their own statements.
CHANGES AND JUSTIFICAITONS
ADDITION OF ‘Suppliers comply with laws and company’s policies (direct / tier 1)’
'our Workplace Standards, which include a prohibition against the use of any form of forced labour, child labour or human trafficking.' - 3 Statement
‘GENERAL PRINCIPLE
Business partners must comply fully with all legal requirements relevant to the conduct of their businesses and must adopt and follow practices which safeguard human rights, workers’ employment rights, safety and the environment.’ – 1 Workplace Standards/Code of Conduct for Suppliers
Beyond tier 1 suppliers do not seem universally bound by company policies, instead specific policies appear to apply.
ADDITION OF ‘Code of conduct or supplier code includes clauses on slavery and human trafficking (direct / tier 1)’
‘EMPLOYMENT STANDARDS
FORCED LABOUR
Business partners must not use forced labour, whether in the form of prison labour, indentured labour, bonded labour or otherwise, or permit the trafficking in persons for the purposes of forced labour. No employee may be compelled to work through force or intimidation of any form, or as a means of political coercion or as punishment for holding or expressing political views.’ – 1 Workplace Standards/Code of Conduct for Suppliers
ADDITION OF 'Contracts include clauses on forced labour (direct / tier 1)'
‘Our trade-related business partners are contractually bound by our Workplace Standards developed around the United Nations conventions on human and labor rights.’ - 1 Policy on Modern Slavery
'FORCED LABOUR
Business partners must not use forced labour, whether in the form of prison labour, indentured labour, bonded labour or otherwise, or permit the trafficking in persons for the purposes of forced labour. No employee may be compelled to work through force or intimidation of any form, or as a means of political coercion or as punishment for holding or expressing political views.
CHILD LABOUR
Business partners must not employ children who are less than fifteen (15) years old, or less than the age for completing compulsory education in the country of manufacture where such age is higher than fifteen (15).' - 1 Workplace Standards/Code of Conduct for Suppliers
ADDITION OF ‘Prohibit use of child labour (direct / tier 1)’
'our Workplace Standards, which include a prohibition against the use of any form of forced labour, child labour or human trafficking.' - 3 Statement
‘CHILD LABOUR
Business partners must not employ children who are less than fifteen (15) years old, or less than the age for completing compulsory education in the country of manufacture where such age is higher than fifteen (15).’ - 1 Workplace Standards/Code of Conduct for Suppliers, direct employees and suppliers
Addition of ‘Suppliers protect migrant workers (direct / tier 1)’
‘DISCRIMINATION
…
Additionally, business partners must implement effective measures to protect migrant employees against any form of discrimination and to provide appropriate support services that reflect their special status.’ – 1-2 Workplace Standards/Code of Conduct for Suppliers
See Policy on Responsible Recruitment (including the fair treatment of migrant workers) – 1-2 https://www.adidas-group.com/media/filer_public/13/5a/135a8242-c209-4de4-b858-5861fad7071f/policy_on_responsible_recruitment_2019.pdf
Addition of ‘Suppliers respect labour rights (wages / freedom of association etc) (direct / tier 1)’
‘FREEDOM OF ASSOCIATION & COLLECTIVE BARGAINING
Business partners must recognise and respect the right of employees to join and organise associations of their own choosing and to bargain collectively. Business partners must develop and fully implement mechanisms for resolving industrial disputes, including employee grievances, and ensure effective communication with employees and their representatives.’ – 2 Workplace Standards/Code of Conduct for Suppliers
SUPPORT FOR BEYOND TIER 1 SELECTIONS
'Prohibited our Tier 2 material suppliers from sourcing cotton yarn from the Xinjiang region of China, from 2019.' - 4 Policy on Modern Slavery
The Workplace Standards/Code of Conduct for Suppliers states that ‘we expect our business partners to operate workplaces where the following standards and practices are implemented:’ (1), which does not explicitly mention that the supply chain beyond direct / tier 1 is covered by these policies. However, on the first webpage linked in the previous comment it is stated that ‘Since the initiation of our robust social compliance and labor rights program founded at the end of the 1990s, we have been systematically addressing the risks associated with forced labor, child labor and migrant labor. In 2016, we launched the modern slavery outreach program to cover those tiers that fall outside the existing mainstream social compliance and labor rights program, including our Tier 2 processing facilities and Tier 3 raw material sources.’ Supporting a beyond tier 1 rating for policies existing/applying that prohibit forced labour, child labour, and protecting migrant workers.
Furthermore, with respect to the protection of migrant workers, the Policy on Responsible Recruitment states ‘In 2016 we launched our modern slavery outreach program to intensify our efforts on potential risks in the upstream supply chain, looking beyond our Tier 1 suppliers, to drive greater transparency in the extended supply chain. As we embarked on this program, it became increasingly apparent that one of the greatest drivers of modern slavery, permeating all economic sectors was the exploitation of migrant workers occurring at the hands of unscrupulous recruitment agencies and/or labor brokers.’ (1). The Statement itself also states that
‘Responsible recruitment for Tier 2 suppliers
Modern slavery and forced labour risks are often highest in manufacturing settings where there are significant populations of foreign migrant workers. Since 2018, we have focused our efforts on addressing such modern slavery risks in our supply chain among Tier 2 suppliers through a partnership with the International Organization for Migration (IOM) and its Corporate Responsibility in Eliminating Slavery and Trafficking (CREST) initiative to promote fair recruitment practices.
Together, adidas and IOM CREST conducted a foreign migrant worker risk assessment, which identified Indonesia, the Philippines, Thailand, and Vietnam as the key sending countries for foreign migrant workers employed among our Tier 2 suppliers in Taiwan. A key focus of the programme has been to strengthen our engagement with our Tier 2 suppliers employing foreign migrant workers and build capacity among the recruitment agencies working with these suppliers’ (8, Appendix A 3)
Suppliers respect labour rights (wages / freedom of association etc) (beyond tier 1)
‘This document outlines the requirements for the responsible recruitment and fair treatment of migrant workers in our supply chain. It draws on the guidance previously published in our Guidelines on Employment Standards in 2010.
In 2016 we launched our modern slavery outreach program to intensify our efforts on potential risks in the upstream supply chain, looking beyond our Tier 1 suppliers, to drive greater transparency in the extended supply chain. As we embarked on this program, it became increasingly apparent that one of the greatest drivers of modern slavery, permeating all economic sectors was the exploitation of migrant workers occurring at the hands of unscrupulous recruitment agencies and/or labor brokers.’
‘Our Responsible Recruitment Guiding Principles align with the ILO’s general principles for fair recruitment:
…
Human Rights: Recruitment should take place in a way that respects, protects and fulfills internationally recognized human rights, including those expressed in international labor
standards, and in particular the right to freedom of association and collective bargaining, and prevention and elimination of forced labor, child labor and discrimination in respect of employment and occupation.’ – 1 Policy on Responsible Recruitment
We have not considered supplier compliance as 'expectation' has been mentioned.
Pg. 6
“We have also included clear and well-defined policies on human trafficking and slavery in our Policy on Responsible Recruitment and Responsible Sourcing and Purchasing Policy.”
“Our commitment to ensuring fair labour practices and safe working conditions in our manufacturing facilities throughout our global supply chain is fundamental to our human rights approach. Our active efforts are guided by the adidas Workplace Standards, which is our supply chain code of conduct. To explain how we expect our suppliers to live up to our Workplace Standards – including our expectations on forced labour and child labour – we have produced a number of supporting guidelines that detail our expectations for fair, healthy, safe workplace conditions and environmentally sound factory operations.”
“Irrespective of country, or location, we expect our supplier partners to uphold our Workplace Standards, which explicitly prohibit all forms of forced labour, including prison labour.”