Working hours

In 2002, working with the Group's Sourcing department, we surveyed Asian footwear factories on working hours. We found that, while the trend was toward reduced working hours, there were still many instances of people working more than our Workplace Standards maximum of 60 hours per week.

We established a task force that first looked at supply-side issues and found the causes of excessive working hours included:

  • Poor production planning
  • Late material deliveries
  • High turnover rates
  • Worker seasonality.

In 2003, the taskforce looked at internal operations at the adidas Group reviewing where we were putting pressure on suppliers regarding the number of hours worked. The task force submitted recommendations that covered:

  • A revised method of calculating main supplier production capacity, order forecasting and capacity loading
  • Monitoring the quality and delivery performance of raw material suppliers
  • Guidelines for last-minute order fulfilment demands and charges.

Striking the balance since 2003

Despite this valuable work, the demands of our consumers for short lead times at competitive pricing have made it challenging to enforce the 60-hour work week. Our efforts to alleviate the issue with a production efficiency drive has, in some cases, led to less overtime and less pay or even lay-offs. In other cases production efficiencies have led to more secure employment – depending on how they are implemented by management.

The number of variables involved – external market demands, pricing, material suppliers’ performance, staff turnover, management approach – means striking a balance between ensuring that workers consistently earn a fair wage but avoiding excessive working hours.

We will continue in our efforts to drive transparency about working hours through a rigid reporting and approval system, but also by supporting our suppliers in developing more efficient production and planning systems.

  • Despite this valuable work, the demands of our consumers for short lead times at competitive pricing have made it challenging to enforce the 60-hour work week.