Adidas and Penn State Settle That Whole Sweatshop Labor Thing
Two months ago, Penn State suspended its relationship with Adidas, which makes school apparel, for its failure to provide $1.8 million in severance pay to workers after a factory closed in Indonesia. Each of the 2,600 workers laid off, in other words, was owed $692. Assuming each makes about $2 per day, a common sweatshop estimate, that’s the equivalent of about two years in wages. University President Rodney Erickson threatened that the school would terminate their contract if Adidas didn’t settle up in 60 days.
Adidas has now complied, reaching an undisclosed settlement with the workers. Though no one seems to know quite what the workers are being paid, the company is now free to make Nittany Lions hoodies again. [Post-Gazette]