Adidas has denied claims that it owes workers in Indonesia severance pay, releasing a statement that said that the owner of the factory, PT Kizone, closed it down illegally, not Adidas, and that it wasn't even using the factory as a contractor by the time it closed. Adidas claims it put in its last order more than six months before PT Kizone closed. Additionally, the company maintains that it has no obligation to pay workers if the contractor doesn't. The issue arose when the chancellor of the University of Wisconson-Madison, David Ward, advised the school's Labor Licensing Policy Committee to put Adidas on notice for breach of contract caused by violating UW-M's code of conduct. Adidas said that in 2010 it conducted 1,350 factory audits worldwide to ensure that the facilities maintained high labor standards. Specific to the Indonesian conflict, Adidas said in its statement that it honored its contract with the factory, paying the owners all the money they were owed. It avers that it cannot be held liable for the owners' subsequent illegal actions. Adidas did note that it has helped to place out-of-work PT Kizone employees in other jobs, especially with other Adidas suppliers.

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