Adidas grapples with the legacy of alleged wage theft in Cambodia

A GlobalData analyst believes it is unlikely German sportswear giant Adidas will attempt to resolve the issues concerning its alleged treatment of workers in its Cambodian supply chain in the short term, following news that the region's union leader planned to attend the brand's Annual General Meeting on 16 May.

While issues concerning Adidas’ treatment of workers in its Cambodian supply chain have been simmering for years, they have recently reignited with workers’ rights activists including Sithyneth Ry, a Cambodian union leader representing 500 unpaid workers allegedly attending the company’s Annual General Meeting.

Ry planned to call out Adidas on its failure to address in the past, and in the foreseeable future, the problem of “wage theft and severance theft” in its supply chain at the meeting.

The controversy centres around the Hulu Garment factory in Cambodia which had been producing for Adidas until the Covid-19 pandemic disrupted operation in 2020.

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