INDIA: Workers protest against Reebok restructure?
Employees from some 100 Reebok India franchisees are staging protests against the franchise model being introduced by owner Adidas, according to reports.
The franchisees have joined together to form the Delhi Reebok Franchisee Association and were protesting outside the company's Indian headquarters in Gurgaon, according to The Business Standard. The franchisees said the new terms were not viable, the report added.
The move comes after Adidas reiterated that some 900 Reebok stores would close, and that it will integrate its local sourcing activities as part of its restructuring plan in the country.
The sportswear giant is moving away from a minumum guarantee model - where franchisees were assured a minimum amount from the company, regardless of how much they sold. Now, Adidas plans to offer stock to franchisees at a reasonable discount.
Last week, the sportswear retailer said it remains committed to the restructuring programme in India, despite reports several Reebok franchisees were unwilling to change to the new model.
Adidas allegedly told 70 franchisees to accept the new terms or shut their shops by 31 August, Indian press reported.
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