Supply Chain Innovation


adidas owns adidas and Reebok brands, and its social compliance program is accredited by FLA.

From the adidas website: Being a sustainable business is about striking the balance between shareholder expectations and the needs and concerns of our employees, the workers in our supply chain, and the environment. We truly believe that acting as a responsible business – one that is fully committed to respecting human rights – will contribute to lasting economic success.

Raw materials supply chains are complex and often opaque. They may span multiple companies and can be difficult to trace. Companies’ efforts to ensure decent working conditions are focused mainly on their immediate suppliers. Typically, apparel and footwear companies focus on the finished goods produced in Tier 1 factories.


On June 29, 2018, the Fair Labor Association joined with seven leading companies and the American Apparel and Footwear Association to send a letter to the President of the Republic of Nicaragua expressing concern about the nation’s political and social crisis threatening the rights, livelihoods, and physical safety of workers and others and the capacity of Nicaragua’s industries that export around the world.
On Monday, November 10, 2014, the Fair Labor Association sent a letter to Deputy Prime Minister Keat Chhon in support of “objective, inclusive, and productive national wage-setting negotiations that result in a minimum wage that is fair for workers” that was signed by nine FLA-affiliated companies sourcing from Cambodia. Putting action behind their words of support, each of the nine brands used the letter to reinforce their commitment to purchasing practices that build sustainable supply chains, affirming that they would incorporate locally negotiated wage increases into...
On October 8, 2012, the FLA convened its fourth stakeholder forum on wages in Seattle, Washington, hosted by the University of Washington. The one day workshop was organized to provide information on the Fair Wage Assessment tools and to facilitate understanding of the methodology, and to share information about current pilots and brand experience with the assessments. Speakers included representatives from: Fair Wage Network; Adidas; H&M; and Puma For a full account of this event, download the report below.
On October 23, 2012, at the request of the adidas Group, the Global Forum for Sustainable Supply Chains will convene a multi-stakeholder meeting of companies, international institutions, insurance experts and civil society to discuss the possible creation of a private fund or insurance product that would provide additional coverage to workers affected by factory closures and non–payment of wages and benefits. The purpose of this meeting is to explore solutions to problems facing workers who do not receive the severance pay and benefits owed by their employers when a factory shuts down....
This is an excerpt from an article by the Maquila Solidarity Network, which originally appeared on the MSN blog. Leading U.S. apparel brands are urging the Guatemalan government to resolve the long-pending DR-CAFTA labour complaint filed by six Guatemalan unions and the AFL-CIO four years ago. In an April 30 letter to President Oscar Molina Perez, the companies stated that, "An attractive business climate for companies like ours includes not only economic and political stability, but also an environment in which the basic rights of workers are respected and labor laws are consistently...


On March 7, 2016, the newly-formed Carlos Fonseca Amador union at Troon Manufacturing (also known as Pinehurst Nicaragua), located in Tipitapa, Nicaragua, filed a Third Party Complaint with the Fair Labor Association (FLA).  The union alleged a number of violations of freedom of association, including management favoring one worker’s organization over another and interfering in the formation of a union; discrimination in hiring against union members; a bonus system that discriminates against certain workers; and verbal abuse and harassment by supervisors and members of the management team a

In November 2015, affiliated companies adidas-Group and Under Armour requested that the FLA engage an independent expert to examine freedom of association-related issues at the factory New Holland Nica (also known as New Holland Apparel S.A.), located in the Zona Franca Astro, Managua, Nicaragua. Adidas-Group and Under Armour are buyers from the facility.

In August 2015, the FLA accepted a Third Party Complaint filed by the labor union Unidos en Victoria alleging freedom of association violations and improper dismissals at the factory Troon Manufacturing in Tipitapa, Nicaragua. The FLA accepted the case for review, informing adidas-Group, an FLA-affiliated company that sourced from the factory.  FLA Participating Companies have up to 45 days to investigate the alleged noncompliance internally and inform the FLA of what they find.

As explained by this FLA issue brief the never-increased 90s-era monthly minimum wage of 20 lari (around $8.50) for private sector workers in Georgia is grossly insufficient to maintain a decent standard of living in that country.  The Clean Clothes Campaign estimates that a living wage for a family of four is nearly 65 times that amount, while the US State Departmen

In April of 2014, workers at the Pou Chen Group, a Participating Supplier with the FLA, went on strike in Gaobu, Dongguan, China, protesting that Pou Chen was not making the contributions for social insurance and housing benfits employers are required to pay under Chinese national law.