Unions pressure Adidas over collective bargaining practices

At the beginning of this month, union representatives from key supplier countries of the German sporting goods manufacturer Adidas met in Tangerang, Indonesia. They discussed labor standards, collective bargaining and working conditions in the brand’s global supply chain. Around 30 trade union delegates from Cambodia, Indonesia, Pakistan, India and Myanmar as well as representatives of the German trade union IGBCE took part in the meeting. This underscores how closely labor relations at Adidas’ overseas headquarters are being watched.

The meeting was marked by growing concern about Adidas’ withdrawal from the collective bargaining agreements in Germany on September 1, 2025. According to the IGBCE, the decision ends long-standing agreements for the footwear and sporting goods industry and represents a break with established social partnership models. Alexander Bercht, board member of the IGBCE, told delegates that efforts to restart negotiations have so far remained unanswered.

For unions in Asia, this move had an impact that went beyond Europe. Representatives reported continued pressure on suppliers, limited protections for workers and barriers to filing complaints. They fear that these conditions could worsen if collective bargaining at the top is weakened. “Decisions that are made in Germany do not stay in Germany,” noted Bercht. This opinion was expressed repeatedly during the meeting.

Ahead of the talks, global union IndustriALL wrote to Adidas Chief Executive Officer (CEO) Bjørn Gulden. She called on the company to recommit to collective bargaining and international labor standards. IndustriALL has also called on Adidas to join the ACT Living Wage and Collective Bargaining Initiative. This initiative includes brands such as H&M, Inditex and Zalando. Adidas has so far rejected this step.

Concerns have also been raised about continued sourcing from Myanmar. According to the unions, freedom of association there has been practically impossible since the military coup in 2021.

For fashion companies, the issue highlights a familiar tension. Working relationships at corporate headquarters are increasingly shaping credibility, risk and resilience along global supply chains. In response, the unions agreed to create an international Adidas network under the IndustriALL umbrella. The aim is to coordinate pressure and supervision across borders.