Reebok Addresses El Salvador Sweatshop Allegations

February 22, 2010
SGB Update

In response to a report from that National Labor Committee that claimed that NFL jerseys were sewn under illegal sweatshop conditions in El Salvador, Reebok issued a statement last week saying it had conducted its own initial investigation and “believe there are a number of inconsistencies and inaccuracies in the report.”

 

“We have shared the NLC’s report with Chi Fung’s owners and we will continue our internal investigation,” the statement said. “If our internal investigation finds non compliance, we will immediately work with the factory to remediate the problems, facilitate the engagement with relevant stakeholders, and commission independent third parties to verify that the remediation has been effective.”

 

NLC, a U.S. sweatshop watchdog group, found that factory workers put in 61 to 65 hours a week, including 12 to 15 hours of obligatory and unpaid overtime. The report also claimed workers were paid a below-subsistence wage of 72 cents an hour, and were blocked from organizing a union.

 

In its statement, Reebok noted that its parent, Adidas, has more than 60 Social and Environmental Affairs (SEA) members, including labor and health and safety experts, who continuously monitor its supply chain.

 

Regarding the El Salvador factory, Reebok said it has regularly monitored and reviewed Chi Fung’s payroll records and had not found “the serious overtime compensation issues alleged in this report. It also noted that factory owners had turned off cameras and monitors in the factory mentioned in the NLC report, and bathrooms are clean, serviceable, and in good working order.

 

SEA also observes supervisor relations with workers and makes sure theres a company harassment policy communicated to all employees.

 

Additional oversight comes from third party audits by Fair Labor Association (FLA) and the World Wide Responsible Apparel Production (WRAP) certification program, Reebok noted.

Reebok Addresses El Salvador Sweatshop Allegations

February 19, 2010
SGB Update

In response to a report from that National Labor Committee that claimed that NFL jerseys were sewn under illegal sweatshop conditions in El Salvador, Reebok issued a statement saying it had conducted its own initial investigation and “believe there are a number of inconsistencies and inaccuracies in the report.”

“We have shared the NLC’s report with Chi Fung’s owners and we will
continue our internal investigation,” the statement said. “If our internal investigation
finds non compliance, we will immediately work with the factory to
remediate the problems, facilitate the engagement with relevant
stakeholders, and commission independent third parties to verify that
the remediation has been effective.”

The statement also noted that adidas, its parent, has more than 60 
Social and Environmental Affairs (SEA) members, including highly
qualified labor and health and safety experts, who regularly monitor
its global supply chain and overall working conditions. The company also said
it has regularly monitored and reviewed Chi Fung’s payroll records and have not found “the serious overtime compensation issues alleged
in this
report.”

Additional oversight comes from independent third party audits by Fair
Labor Association (FLA) monitors. In addition, Chi Fung has been
audited and certified by the World Wide
Responsible Apparel Production (WRAP) certification program.

The full statement follows:

February 16, 2010

Reebok Statement on National Labor Committee Report on Workplace Conditions at Chi Fung Factory in El Salvador

“We have reviewed the report by the National Labor Committee about working conditions at the Chi Fung factory in El Salvador.  We take the allegations in the report very seriously.  We have conducted our own initial investigation, and believe there are a number of inconsistencies and inaccuracies in the report.  We have shared the NLC’s report with Chi Fung’s owners and we will continue our internal investigation. If our internal investigation finds non compliance, we will immediately work with the factory to remediate the problems, facilitate the engagement with relevant stakeholders, and commission independent third parties to verify that the remediation has been effective.

The adidas Group has a dedicated team of more than 60 Social and Environmental Affairs (SEA) members, including highly qualified labour and health and safety experts, who regularly monitor our global supply chain. Through our work we ensure that factories making our products consistently deliver fair, safe and healthy working conditions.  We have worked with Chi Fung for more than 10 years.  During this time, we have regularly monitored and reviewed Chi Fung’s payroll records and have not found the serious overtime compensation issues alleged in this report.   Likewise the same results when reviewing the working hour and work scheduling records.  SEA has been aware of cameras and monitors in the factory and spoke with the owners more than a year ago.  The system, used to quickly resolve production and mechanical issues on the floor, was turned off and has not been used. Bathrooms are clean, serviceable, and in good working order.  SEA monitors the relationships between Chi Fung supervisors and production workers, and there is a company harassment policy communicated to all employees.

Our suppliers are also subject to an additional level of oversight.  In Chi Fungs’s case, there have been independent third party audits by Fair Labor Association (FLA) monitors. The FLA combines the efforts of industry, civil society organizations, and colleges and universities to protect workers rights, improve working conditions worldwide, and promote adherence to international labor standards.  In addition, Chi Fung has been audited and certified by the World Wide Responsible Apparel Production (WRAP) certification program.

Whenever we have identified employment, health and safety non compliance issues, Chi Fung has worked with us, the Fair Labor Association, other customers, members of local civil society, and El Salvador’s regulatory agencies to promptly remediate any non-compliance.  The remediation process includes implementation of improved policies and practices for managing employment relationships.”

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