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Clean Clothes Campaign Living Wage Survey Responses 2019

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Clean Clothes Campaign Living Wage Survey Responses 2019 Clean Clothes Campaign Living Wage survey responses 2019 Adidas Clean Clothes Campaign Living Wage Survey This survey is being carried out on behalf of the Clean Clothes Campaign and will be used to update our study into brand progress towards payment of a living wage (last published as Tailored Wages - www.cleanclothes.org/livingwage/tailoredwages - in 2014). The outcomes of the study will be promoted to consumers across Europe and the “S. We firmly believe that there should be more evidence-backed information available for consumers and the wider public about garment supply chains, and wages in particular. As such, links and upload options are given for providing evidence to back up your answers throughout this survey. Please note that documents uploaded or links provided may be checked for verification reasons, but will not be used as part of the assessment. Please make sure to include any data you want to be read in the main body of your answers. All the information that you provide to us may become publicly available. If however, in exceptional circumstances, there are sensitive pieces of information that you would like to provide to the assessment process but that can't be made public, please indicate these clearly. Defining terms For the purposes of this study, a living wage is defined by the following statement: Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income. Specifically a living wage: - Applies to all workers, which means that there is no salary below the living-wage level - Must be earned in a standard work week of no more than 48 hours - Is the basic net salary, after taxes and (where applicable) before bonuses, allowances or overtime - Covers the basic needs of a family of four (or 3 consumption units, two adults and two children) - Includes an additional 10% of the costs for basic needs as discretionary income. (For more details see: https://cleanclothes.org/livingwage ) The latest Asia Floor Wage benchmark figures, last updated in 2017, can be found here: https://asia.floorwage.org/what The Clean Clothes Campaign estimates for Living Wage benchmarks in the European production region, based on worker interviews, can be found on p.25 of this report: https://cleanclothes.org/livingwage/europe/europes-sweatshops Your company Company name: * adidas Brands owned by company: * adidas, Reebok Main contact person: * Frank Henke Contact email: * [email protected] Contact phone number: * +49-9132-842032 1. A Living Wage commitment Our definition of a living wage is as follows: "Wages and benefits paid for a standard working week shall meet at least legal or industry minimum standards and always be sufficient to meet basic needs of workers and their families and to provide some discretionary income." Specifically a living wage: - Applies to all workers, which means that there is no salary below the living-wage level - Must be earned in a standard work week of no more than 48 hours - Is the basic net salary, after taxes and (where applicable) before bonuses, allowances or overtime - Covers the basic needs of a family of four (or 3 consumption units, two adults and two children) - Includes an additional 10% of the costs for basic needs as discretionary income. 1.1 Has your company published a clear commitment to ensure a Living Wage is paid across your supplier network? * Yes No If yes, please describe how your company defines a living wage and provide a link to where this commitment is publicly available. see website: https://www.adidas-group.com/en/sustainability/people/factory-workers/ 1.2 How do you monitor supplier compliance with this living wage commitment, both for tier 1 suppliers and across your supplier network? * see website: https://www.adidas-group.com/en/sustainability/compliance/supply-chain- approach/ Please supply details about your approach to auditing for a living wage. Does your company hire auditors from auditing firms? Are these announced or unannounced visits? Does your company use any external certifiers? How do you remedy non-compliances? see website: https://www.adidas-group.com/en/sustainability/compliance/supply-chain- approach/ see website: https://www.adidas-group.com/en/sustainability/compliance/supply-chain- approach/#/monitoring/ see website referring to corporate human rights benchmark: https://www.adidas-group.com/media/filer_public/fd/5c/fd5ceea4-0008-4b08-a4f8- 03114f8fc88f/adidas_chrb_2018_submission.pdf 2. Benchmarks for a minimum living wage 2.1 Does your company have internal or public figures that it uses to benchmark Living Wages for each sourcing country or region? * Yes No If yes, please provide details. See website: https://www.adidas-group.com/media/filer_public/fd/5c/fd5ceea4-0008- 4b08-a4f8-03114f8fc88f/adidas_chrb_2018_submission.pdf During 2016, we continued to work closely with our partners such as the Fair Labor Association, to strengthen our prevention programmes and to close critical gaps in wage fairness identified in our ongoing collection of supply chain wage data. A 2016 outcome of the FLA Fair Compensation Strategy is to publicly compare and report compensation paid at suppliers to FLA affiliated companies with national wage levels as benchmarked by the Legal Minimum, World Bank Poverty line, Asia Floor Wage, national sectoral range, OECD, and others. See FLA compensation reports: http://www.fairlabor.org/global-issues/fair- compensation/reports 2.2 Please supply living wage benchmarks for the countries from which you source or alternatively provide a link to a living wage methodology that your company uses to provide specific living wage benchmarks for production countries. As part of our monitoring program and also through our wage gathering exercises, we monitor available wage benchmarks to ensure we consider the most updated information when verifying legal compliance during our monitoring efforts, and existing fair wage/living wage estimates when conducting wage gathering. Please refer to the FLA’s Toward Fair Compensation in Bangladesh’ report (http://www.fairlabor.org/bangladesh- 2018 ) to understand the wage benchmarks we are using in our wage gathering exercises. In our Workplace Standards, we commit that the suppliers will meet all the legal requirements relating to wages and benefits. This includes the cases where the minimum wages significantly increase in a country. For example, when there was a hike in minimum wages in 2012 in Indonesia, we refused to accept waivers by regional government, and asked all our suppliers to pay the new minimum wages. 2. As part of our monitoring efforts and also through our wage gathering exercises, we monitor available wage benchmarks to ensure we consider the most updated information when verifying legal compliance during our monitoring efforts, and existing fair wage/living wage estimates when conducting wage gathering. See also: http://www.fairlabor.org/global-issues/fair-compensation/reports 2.3 Please give details of the number of your suppliers (both tier 1 and across your supplier network) that are currently paying your stated living wage benchmark to all workers in their factory. Do supply evidence for this where possible. * See: https://www.adidas-group.com/en/sustainability/people/factory-workers/#/our- approach-to-fair-wages/ Evidence upload 3. Purchasing practices that make living wages possible 3.1 Does your company calculate whether FOB prices paid per piece are sufficient to allow for compliance with the living wage standard your company has committed to deliver? * Yes No If yes, please supply evidence. If no, how does your company ensure that the FOB prices paid to suppliers are sufficient to allow for compliance with your company’s living wage standard? See: https://www.adidas-group.com/en/sustainability/people/factory-workers/#/our- approach-to-fair-wages/https://www.adidas- group.com/media/filer_public/ca/ba/caba936a-7da7-4710-9d88- d437bac87923/adidas_responsible_sourcing___purchasing_policy_en.pdf Responsible Sourcing Policy: “pload option. 3.2 Does your company make long-term sourcing commitments at a specific volume to suppliers? * Yes No If so, how long are these commitments, and at what volume? See responsible sourcing policy: https://www.adidas- group.com/media/filer_public/ca/ba/caba936a-7da7-4710-9d88- d437bac87923/adidas_responsible_sourcing___purchasing_policy_en.pdf Also see annual report 2017 page 76: https://www.adidas- group.com/media/filer_public/6a/69/6a690baa-8430-42c5-841d- d9222a150aff/annual_report_gb-2017_en_secured.pdf 3.3 Is your company doing work to limit the use of subcontractors in your supply chain, and consolidate your supplier factory list? * Yes No If yes, can you provide concrete evidence over time that shows how this is working? See: responsible Sourcing policy: https://www.adidas- group.com/media/filer_public/ca/ba/caba936a-7da7-4710-9d88- d437bac87923/adidas_responsible_sourcing___purchasing_policy_en.pdf Also see annual report 2017 page 76: https://www.adidas- group.com/media/filer_public/6a/69/6a690baa-8430-42c5-841d- d9222a150aff/annual_report_gb-2017_en_secured.pdf 3.4 Is your company doing work to limit the use of labour contractors? Yes No If so, can you provide concrete evidence over time that shows how this is working? See employment Guidelines page 114 ff https://www.adidas-group.com/media/filer_public/02/86/0286659a-40ea-427f-9f26- 64eb3013b1ca/2016_employment_guidelines.pdf 4. Ensuring transparency See https://cleanclothes.org/transparency/transparency-pledge for reference on definitions. 4.1 Does your company publish a public list of suppliers, including address, parent company, products and numbers of workers, for tier 1 and your wider supplier network? * Yes No Please supply a link or further information. supplier lists: https://www.adidas-group.com/en/sustainability/compliance/supply- chain-approach/#/aufbau-der-beschaffungskette/ 4.2 Does your company publish information on wages currently paid to workers at your suppliers? * Yes No If yes, please supply a link or further information.
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