The retrotruitjes of the Red Devils don’t smell very fresh. A football shirt that is sold for 90 euros, ends up eventually but 0.90 euro at the kledingarbeider.
The part that is in the form of wages for kledingarbeiders ends up, over the past 20 years in addition smaller. The profit margins are there have gone forward, just like the dividends paid to the shareholders. That has everything to do with the business model of Nike and Adidas.
Profit margins football shirts from Adidas and Nike to grow, but textile workers earn a pittance.
Both pay astronomical sums to clubs, national teams and football stars to bind – and through them the consumers. For Adidas and Nike go together to more than 2 billion euros per year. In november 2016 signed Cristiano Ronaldo a contract for life with Nike. A contract that earned him 20 million euros per year for the rest of his life.
Six months later, signed Lionel Messi has a contract with Adidas for life. Also the German national team, won a new contract with Adidas from the fire. The reigning world champion will receive 65 million euros per year, which is up to 3 times more than their previous contract. The French national team, sponsored by Nike, sit them on the heels with 50.5 million euros per year. How much the Belgian football from adidas is not known.
To be profitable to continue to skimp the two are constantly on the production costs. In the period In which the marketing and sponsorbedragen doubled, Adidas even managed to get the production costs down. The international sports brands, Adidas and Nike on head, places less and less orders in China, the only country where the wages come close to a living wage.
Vietnam, Indonesia and Cambodia are in place. Research of the International labour organisation (ILO) shows that there is in the clothing and footwear sector in those countries, large risks are violations of international labour standards. Kledingarbeidsters earn in Indonesia is between 82 and 200 euro, depending on the region where they are employed. And that is absolutely not sufficient to get around. According to the calculations amounts to a living wage in that country for at least 363 euro per month.
The extremely low wages are the result of a business model with the wrong priorities.
Another way to Ronaldo & co to pay, and the shareholders, keeping them happy, is by questionable belastingconstructies. So made The Time in november known that Nike via Bermuda and the Netherlands managed to on billions of euros of profit as well as no taxes payable. Nike’s global effective tax rate to 34.9 % fell on the 10-year period to 13.2 % last year.
The extremely low wages in the sector are clearly not the result of a lack of resources, but to a business model with the wrong priorities. As Nike and Adidas, the contracts on the level of 2012 had, they would this year with the difference livable wages pay to the workers at their suppliers in China, Vietnam, Indonesia and Cambodia. Would the employees less overtime should be true to their wages to increase. And they could maybe have a match of the world cup action.
More info via the Foul Play report in 2018.