Sweating the Athens Apparel

By Sasha Lilley, CorpWatch. Posted August 19, 2004.

At the Olympic Games in Athens this year, the logos of McDonalds, Samsung, Coca-Cola, and other multinational advertisers are saturating the festivities to the tune of $1.339 million. But the corporate self-promotion and commercial branding won't end when the games come to a close. Sportswear companies have negotiated $81 million worth of licenses from the International Olympic Committee, allowing them to adorn their products with Olympic emblems. Behind the five intertwined rings and the Athens 2004 kotinos laurel wreath insignia, hidden from the eyes of the world, non-union, underpaid labor will be sewing the shirts, gluing the shoes, and putting zippers to running suits and track apparel branded as Olympic in working conditions that would make even the most highly trained athlete sweat.

While the sportswear market was valued at over $58 billion in 2002, and select athletes garner millions of dollars through corporate endorsements – such as football champion David Beckham's $161 million lifetime deal with Adidas - workers in sweatshops in Indonesia, Bulgaria, Cambodia, Turkey, China, Thailand, and elsewhere are paid a dollar or two a day, while facing hyper-exploitation, unhealthy working environments, sexual harassment, verbal and even physical violence from their employers.

This year, Global Unions, Oxfam, the Clean Clothes Campaign and other groups are aiming to change these conditions by turning the spotlight on the situation of workers producing apparel and athletic footwear for sportswear giants Nike, Adidas, Reebok, Fila, Puma, ASICS, Mizuno, Kappa, and Umbro. They call their campaign "Play Fair." "Play Fair campaigners interviewed close to 200 workers in factories worldwide and in factories producing goods for Olympic brands," says Katherine Daniels, trade policy advisor at Oxfam, "and they found cases of workers working shifts up to 16 – even 18 – hours for pittance wages that are not enough to live on. And they found gross intimidation and violations of workers rights, and intimidation for those who wanted to form or join trade unions."

Gearing up

In the past decade, anti-sweatshop activists have targeted highly visible firms like Nike, Reebok and Adidas, with campaigns on college campuses, at major retailers like the Gap, and at other athletic events. However, until recently sportswear giants like Fila, Puma, ASICS, Mizuno, Kappa, and Umbro have stayed below the radar. Now, these colossal Italian, British, Japanese, German, and American companies increasingly marketing sportswear as street clothes to young people using advertisements placing more emphasis on lifestyle than on athletic performance.

Fila and Puma are cases in point, selling their fashionable wear and old school sneakers to skaters, jocks, and hip-hop heads. Fila spends $116.4 million a year to maintain its image – the company shelled out $7 million to basketball star Grant Hill to peddle the Fila brand – while Puma pays more than $107 million per annum on advertising.

Originally an Italian company, Fila has been owned since 2003 by a private New York-based holding company called Sports Brands International, closely associated with the investment fund manager Cerberus Partners, which controls 20 sportswear and footwear subsidiaries, including the Ciesse brand. Fila promotes itself as on the luxury end of the sporting apparel industry, with "an Italian flair for style," partnering in promotion with the automakers Ducati, Ferrari, and Pininfarina. As a private company, SBI is not required to disclose its finances.

German-based Puma makes "lifestyle" sportswear such as funky suede trainers, track suits, and up-market Nuala yoga clothing endorsed by supermodel Christy Turlington. Puma is the world's sixth largest sportswear brand, doubling its profits in 2003 from $108 million to $228 million.

Sasha Lilley is a writer for CorpWatch and producer of Against the Grain on Pacifica Radio's KPFA.

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