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SBD Global/July 16, 2012/Marketing and Sponsorship

Adidas Faces Investigation By LOCOG After Claims It Pays Cambodian Workers $16 A Week

Adidas is facing an investigation over claims that Cambodian workers "are being paid £10 ($16) a week in basic wages to make official merchandise for the London Olympics," according to Dean Nelson of the London TELEGRAPH. Adidas, one of the 2012 Games' largest sponsors, is "believed to have invested" £100M ($156M), and manufactured the official Team Great Britain outfit designed by Stella McCartney. But at the company's Shen Zhou factory on the outskirts of Cambodian capital Phnom Penh, the Telegraph "discovered that poor machinists" were working up to 10 hours a day, six days a week, to "produce the official Olympics merchandise that thousands of fans will buy in stores" throughout Britain. Workers said that they earned a basic salary of £40 ($61) a month for working eight hours a day, six days a week, plus a £3 ($5) allowance for health care. They said they could take their wages up to £78 ($120) "by increasing their hours to 10 per day." Adidas insisted that workers at the factory made an average of £84 ($130) a month, and "would get a pay rise later this year, along with other garment industry workers." Campaigners said the treatment of the workers "amounted to a breach of an agreement" with LOCOG that merchandisers "must pay workers a sustainable living wage." A LOCOG spokesperson said it was "concerned by the allegations and would investigate" (TELEGRAPH, 7/13).
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