Adidas faces global union pressure over collective bargaining practices

Trade union representatives from key Adidas supplier countries gathered in Tangerang, Indonesia, earlier this month to discuss labour standards, collective bargaining and working conditions across the brand’s global supply chain. Around 30 union delegates from Cambodia, Indonesia, Pakistan, India and Myanmar attended, alongside representatives from German union IGBCE, underscoring how closely labour relations at Adidas’ headquarters are watched abroad.

The meeting was shaped by growing unease over Adidas’ withdrawal from sectoral collective bargaining in Germany on 1 September 2025. According to IGBCE, the decision ended long-standing agreements covering the shoe and sporting goods industry and marked a break with established social partnership models. IGBCE executive board member Alexander Bercht told delegates that efforts to reopen negotiations have so far gone unanswered.

For unions in Asia, the move resonated beyond Europe. Representatives described persistent pressure on supplier factories, limited protections for workers and obstacles to raising grievances, conditions they fear could worsen if collective bargaining weakens at the top. “Decisions taken in Germany don’t stay in Germany,” Bercht noted, a sentiment echoed repeatedly during the meeting.

Ahead of the talks, IndustriALL Global Union wrote to Adidas CEO Bjørn Gulden, urging the company to recommit to collective bargaining and international labour standards. IndustriALL has also called on Adidas to join the ACT initiative on living wages and collective bargaining, which includes brands such as H&M, Inditex and Zalando, a step Adidas has so far declined.

Concerns were also raised about continued sourcing from Myanmar, where unions argue freedom of association is effectively impossible following the 2021 military coup.

For fashion businesses, the issue highlights a familiar tension: labour relations at headquarters increasingly shape credibility, risk and resilience across global supply chains. In response, unions agreed to form an international Adidas network under IndustriALL, aiming to coordinate pressure and oversight across borders.