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Published in The Georgia Straight, Vancouver's News & Entertainment
Weekly,
Volume 31, Number 1556, October 16-23, Vancouver, B.C.,
Canada
By Sarah Cox
Bev Smith wears the shoes. Cicih Sukaesih made them. The two women, one
a well-known Canadian basketball Olympian, the other an undistinguished
Indonesian factory worker, have never met. In physical appearance, they
are quite different. At six feet, Smith is striking in white jeans and
a bright-burgundy golf shirt. A full foot shorter, Sukaesih is tiny, inconspicuous
behind folded arms. But one word is on both their minds when they speak
of Nike Inc., the rags-to-riches corporation that made its "swoosh" logo
an international icon and labour abuses a buzzword. That word is survival.
For Smith, one of two part-time coaches of Canada's national women's
basketball team, survival means accepting about $40,000 a year worth
of running shoes, shorts, sweats, and equipment from Nike Canada Ltd.
on the team's behalf. It was the reason she first wrote to Nike in the
late 1970s, when she was a struggling university student, asking for
free running shoes, and it is why she now sends a fax to Nike Canada's
head office in Thornhill, Ontario, whenever she needs personal equipment
and clothes like the burgundy shirt with the swoosh on its left sleeve.
"The way amateur sport is now in Canada, we need help from corporations,"
says Smith, who accepts Nike products along with 500 Canadian athletes
in 20 sports that include everything from snowboarding to mountain biking.
"I look upon it as a compromise not just for me but for athletes in
Canada; we have Third World budgets to operate on. Nike cares about
athletes."
For Sukaesih-who was fired from her US$1.20-a-day job gluing soles
on Nikes after a wildcat strike to protest working conditions and wages-survival
means food to eat and a place to sleep. At 33, unskilled and uneducated,
she is considered too old for factory work and relies on her sister
for meals and shelter. Along with 23 other workers dismissed simultaneously,
she awaits the outcome of a court case on the legality of the firings,
bogged down with 2,000 other unrelated cases in the Indonesian Supreme
Court. "I question why Nike spends so much money in the United States
and Canada while they are exploiting the workers who work very hard
to produce the shoes," said Sukaesih-one of half a million workers in
30 countries who make Nike products-during an interview in Vancouver
last May. "It has nothing to do with goodwill or care. It has everything
to do with raising their profits. It seems that Nike only wants more
people to buy Nike."
The world's leading shoe and athletic-wear company, being wooed by
B.C. Premier Glen Clark to expand its Oregon headquarters to the Lower
Mainland, is fighting a double image. In lucrative consumer markets
such as Canada, Nike comes across as a good-hearted corporation that
cares about people and communities. It has donated millions of dollars
to Canadian charities such as Run for the Cure, given low-income Vancouver
children presents of Nike T-shirts and tickets to Vancouver Grizzlies
games, and resurfaced asphalt courts with recycled Nike runners, including
one at Hastings Community Park-at a cost of $30,000-in return for a
foot-long swoosh logo at centre court. The company even chartered a
plane last year for Smith, her mother, and Smith's former high-school
coach to attend an event honouring the basketball player at her former
high school, Salmon Arm Senior Secondary. There, Nike announced a $2,000
annual scholarship fund and presented the school with two portable hoops
and warm-up suits for its basketball team. Yet in Indonesia, Vietnam,
and China, disturbing tales of labour abuses at factories making Nike
shoes continue to surface, despite the sport king's assurances that
all is well in its overseas domain. The most recent study, conducted
by two Hong Kong-based human-rights groups and released in September,
claims that children as young as 13 are employed in the sewing, handwork,
and cutting department at the Wellco Nike subcontracting factory in
Dongguan, China, even though Chinese labour law prohibits underage factory
labour. The report details poor safety conditions at Wellco and another
Nike subcontractor in China that have resulted in workers losing fingers
and hands in machines; beatings by security guards; verbal abuse by
supervisors; fines levied on workers who talk to each other on the job;
72-hour work weeks; and pay less than the Chinese provincial minimum
wage of US$0.24 an hour. Even a much-touted June 1997 Nike-commissioned
report on the company's overseas operations, by American civil-rights
hero Andrew Young and his fledgling consulting firm, GoodWorks International,
has been criticized for the use of Nike translators to obtain information
from workers, omission of the controversial topic of wages, and listing
as contacts people who say they were either never consulted or misrepresented.
On Saturday (October 18), human-rights and labour organizations from
12 countries where Nike products are sold will hold demonstrations in
front of stores worldwide selling the company's wares, including Nike's
Robson Street outlet. Mindful of Nike's economic clout and popularity,
organizers of the "day of mobilization in support of Nike workers" are
refraining from calling an all-out boycott. Instead, they are merely
urging consumers to think twice before they dish out $199 for that coveted
pair of Air Max runners, and they are asking them to pressure Nike to
allow independent monitoring of the hundreds of overseas factories that
make its celebrated products, some employing up to 12,000 people.
The Nike campaign is one of a growing number of consumer initiatives
targeting multinational corporations that do business in the Third World.
In the 1970s and 1980s, concern about environmental issues inspired
a green consumer movement that led some corporations to introduce ecologically
sound production practices and products. In turn, globalization in the
1990s has created a rapidly growing consumer movement aimed at making
companies like Nike more accountable for conditions under which their
products are made all over the world.
"Consumers are becoming much more aware and interested in the origins
of things they buy, whether it's apparel or shoes," says Jacques Bertrand,
a coordinator for the Canadian Catholic Organization for Development
and Peace, a national organization that supports Third World groups
working for human rights and democracy. This spring, a CCODP Nike campaign
resulted in 157,000 Canadians sending the company postcards calling
for independent monitoring of its overseas operations. "This Nike campaign
would not have worked five or seven years ago," Bertrand observes. "People
are much more concerned about [ Third World ] working conditions
because they are also feeling the pressure of globalization. You work
more and you earn less. People lose their jobs."
Companies like the Gap Inc., Starbucks Coffee Company, Liz Claiborne
Inc., Phillips-Van Heusen Corp., and Walt Disney Corp. have all recently
been targeted by campaigns drawing attention to working conditions for
people who produce their merchandise. And Reebok, Nike's main competitor,
was also criticized in the recent Hong Kong study of shoemakers in China
for equally dismal labour practices. But not since the days of the Nestlé
infant-formula boycott have a corporation's overseas practices generated
as much negative attention worldwide as Nike's have done.
"The Nike campaign is a big deal because Nike is the industry leader,"
says Trim Bissell, coordinator of the U.S. Campaign for Labor Rights,
which monitors multinationals and dispenses information about consumer
campaigns such as the Nike initiative. "Once Nike agrees to do the right
thing, the rest of the industry is soon to follow," says Bissell, who
accompanied Sukaesih on a May tour across Canada that was sponsored
by the Canadian Auto Workers. "In reality, this is about all shoe workers.
But we can't go after all shoe companies at once."
Nike is not only the industry leader in sales (with about 200 pairs
of shoes sold worldwide every minute of the day and its apparel line
growing like blazes-up 70 percent in the U.S. alone in its fiscal year
ending May 1997), no other shoe and athletic-wear company comes close
to being a cultural deity the way Nike is. The swoosh, designed by an
Oregon university student for US$35, is emblazoned everywhere: on hats,
shirts, shoes, socks, sandals, shorts, bathing suits, windbreakers,
sweats, and even dog tags. It has become an affirmation, a check mark.
It's universally understood, something Esperanto never managed to be.
What it means is this: You're okay. You fit in. You pass.
Nike Canada president John Chappell says sales in Canada have quadrupled
since 1992. Nike's astounding appeal is frequently attributed to the
company's television ads featuring sports luminaries such as Michael
Jordan, who reportedly earns $20 million a year for his endorsement.
But the company's growing charitable donations and its sponsorship of
underfunded Canadian sports teams have also been instrumental in spreading
the swoosh from coast to coast, because they include generous gifts
of Nike clothing and equipment. Chappell says Nike is involved in about
20 Canadian sports, with basketball being one of its main focuses. In
addition to supporting high-profile national teams like the Vancouver
Grizzlies, the Toronto Raptors, and Canada's national women's and men's
basketball teams, Nike also sponsors a variety of sports teams at 12
Canadian universities. In B.C., according to team sources, Nike gives
about $10,000 a year in clothing and equipment each to the UBC Thunderbirds
basketball team and the SFU women's basketball team, the Clan. Although
Nike-sponsored American college teams often sign contracts outlining
strict terms of sponsorship, the company's agreements with the two B.C.
teams are verbal. "I've been asked to do very little," says Bruce Enns,
UBC's head basketball coach. "We're asked to be a member of the [ Nike
] family; we're asked to represent the company in terms of what we wear
and how we purport ourselves in the community. If our guys are going
out on the street, they're going to be wearing Nike product."
SFU Clan coach Allison McNeill says Nike's product donations for the
past eight years-which this year include two pairs of "Air 'Ogants"
for each of the team's 15 members-allow the Clan to spend more money
on scholarships and travel to places like Colorado for tournaments.
"It doesn't sound like a lot in the corporate world, but to a women's
basketball team, it means a lot." In exchange for the gifts, Nike gets
a big swoosh in the SFU gym along with other sponsors' logos and a free
full-page ad in the women's basketball program. Nike also sponsors Basketball
B.C., the nonprofit governing body for province-wide basketball. Executive
director Mike Hind says Nike's sponsorship has increased during the
past 15 years to the point where the company is now providing about
$70,000 worth of shoes and clothing annually for thousands of basketball
players. In return, Hind says, Basketball B.C. was required to sign
an agreement granting Nike exclusivity in footwear and clothing when
the team plays.
Many of Nike's B.C. donations are made through a North America-wide
program called PLAY (Participate in the Lives of American Youth, or,
in Canada, Participate in the Lives of All Youth). In Canada, Nike devoted
$1.5 million to PLAY during a three-year period beginning in 1995. Nike
makes cash donations and also gives away products-such as shoes, T-shirts,
and caps-that can be used as fund-raising prizes. Although the company
does not break down its financial contributions by province, at least
23 charities, community centres, schools, and sports events in B.C.
have received assistance from PLAY. These include the Nike-NHL Street
Hockey Program, the Rick Hansen Institute, the Hastings Community Centre,
Salmon Arm Senior Secondary School, an eight-kilometre run for B.C.
cancer research, Kidsport B.C., and Night Hoops, a basketball program
for youth.
Above and beyond PLAY donations, Nike buys tickets to professional
sporting events, such as Grizzlies games, for low-income children. Through
Sport B.C., a nonprofit organization that promotes sports in B.C. communities,
Nike has paid for about 120 Vancouver children to attend games and practices
so far this year, in some cases giving them T-shirts along with a ticket,
according to Diana Davies, Sport B.C.'s special-event and marketing
manager. Nike Canada president Chappell says there are two reasons for
Nike's extensive contributions: to "give something back" to communities,
and as a marketing strategy. "Obviously, if we can develop Canadian
sport and increase the number of people participating in Canadian sport,
that's good for our business," Chappell says. He says Nike Canada will
make an announcement within a few weeks about increasing its involvement
with sporting associations. In the next 12 months, the company will
make a "pretty dramatic increase in charitable contributions and trying
to be a good community citizen". Michelle McSorley, public-affairs supervisor
for Nike Canada, told the Georgia Straight that Nike also hopes to encourage
more girls and women to become involved in sports-an astute marketing
strategy, given that Nike chief executive officer Philip Knight points
out in the company's 1997 annual report that one in five school-age
girls in the U.S. is involved in sports today, compared to one in 30
when the company began 25 years ago, "and it's not just in the United
States where these changes are happening."
"It's a kind of new-wave style of promotion," observes UBC marketing
professor Richard Pollay of Nike's overall community activities. "I
do think it is a good marketing strategy and they may be drawn to it
because they recognize that they have to do something to counter the
bad press that they're getting for their overseas practices. They want
the publicity spin to help their sales effort, so I think they prefer
to spend their resources here, where there's a potential sales payoff,
than at the factory, where it may not be clear to them what the payoff
is."
The sports giant, which got its start with Knight hawking running
shoes out of his car trunk, was also the industry leader when it came
to moving shoe production from the U.S. to overseas factories as globalization
of industry spread. At first, the company went to South Korea and Taiwan,
at that time authoritarian countries with low labour costs. Its competitors
soon followed, effectively wiping out the American sport-shoe industry
that once employed about 30,000. Then, in the late 1980s, democracy
came to Taiwan and South Korea and strong labour movements emerged.
Shoemakers' wages tripled. Nike reacted quickly. The company found contractors
in China and Indonesia, then later in Vietnam, places where hourly wages
totalled pennies, not dollars, and where the lack of independent trade
unions posed no threat to profits. "It was a lightning move by industry
standards," says Jeff Ballinger, the founder of Press for Change, a
U.S. organization that monitors Nike's shoemaking operations in Indonesia.
"Nike did the trailblazing out there in Asia, and no one could compete."
Although Nike still produces apparel in North America, it continues
to move production to countries with cheaper labour. In Canada, a Quebec
factory produces Nike socks for the North American market, according
to Nike Canada president Chappell. McSorley says that about Cdn$10 million
worth of Nike fleece apparel is also produced domestically each year,
mainly in Quebec. On the other side of the coin, however, a Downsview,
Ontario, manufacturer of Nike athletic clothing shut down in 1994 when
Nike shifted the production contract to undisclosed cheaper locations,
according to Alexandra Dagg, manager of the Ontario District Council
of the Union of Needletrades, Industrial, and Textile Employees. More
than 100 UNITE members lost their jobs as a result, Dagg says. Then,
this spring, Nike stunned 400 unionized employees of Bauer Inc., which
it bought in 1994, when it announced it will close the Cambridge, Ontario,
plant by the end of next year. In newspaper interviews, workers have
speculated that the company wanted the Bauer name and access to its
coveted designs and technology before moving skate-making operations
to Asia. "My understanding of it is that only the entry-level production
has gone overseas and that they do anticipate moving jobs into the Quebec
[ Bauer ] plant," Chappell says.
Like some other multinationals, Nike does not own factories that make
its products. Factories are owned by other companies, known as subcontractors,
who must accept the multinational's time line and a certain price per
item if they want to stay in business. This arrangement keeps wages
in Third World factories low and puts pressure on workers for frequent
overtime to meet quotas and rush orders.
In Indonesia, Sukaesih was one of 6,500 workers hired by Nike subcontractor
P.T. Sunghwa Dunia in 1989. Then 25, she was older than most factory
workers in the Third World apparel and shoe industries. Factories generally
prefer to employ young women, who are considered to be docile and nimble-fingered.
The study of Chinese workers making Nike and Reebok shoes, for example,
found that 90 percent were women aged 17 to 23. Frequently from poor
rural areas, young women are unlikely to protest arduous conditions
or complain about forced overtime to meet production quotas.
"A lot of times we even had to work Sunday," Sukaesih says, speaking
through an interpreter. "Working days were six full days a week and
then sometimes Sunday, so that meant seven days a week. There was no
break at all. In the room I was in, there were 700 people. I had to
put some chemical on sponges for the soles of the shoes. It smelled
really bad. I don't know what it was. They gave us a mask, but it was
very thin and you could still smell it. There were some fans, but they
weren't effective with so many people. They didn't want to put in more
fans because they said the glue would dry faster and it would not be
good for production."
Water rations, timed bathroom breaks, low pay, forced overtime, and
lack of subsidized transportation to the West Java factory led Sukaesih
and her coworkers to agitate for better conditions and the right to
form an independent trade union. In September 1992, they held a one-day
wildcat strike. The factory management eventually capitulated to some
of their demands, instituting a slight pay raise and improving working
conditions. But shortly after, Sukaesih and 23 other workers were called,
two by two, into the local police station.
"I was interrogated from 9 o'clock in the morning until 6 o'clock
at night. I was first asked to be a witness of activities in the factory:
what was I doing, what did I see, what were people doing. Later, all
of a sudden, I was a typical suspect. They charged me with being involved
in illegal organizations. They didn't specify what I had done against
the law. Then we got a letter saying we had been suspended, and then
we were called by the Department of Labour, and then were fired."
When Sukaesih toured Canada last May, Nike Canada Ltd. issued a news
release saying that she had been dismissed "for inciting an illegal
strike which damaged the premises and resulted in loss of production
for three days". Yet in Indonesia-a repressive country where the head
of an unrecognized independent trade union, Muchtar Pakpahan, is in
jail for treason and faces a possible death sentence-it is illegal to
hold a meeting of more than five people without a permit, says Ballinger
of Press for Change. As a result, Indonesian workers have been holding
wildcat strikes similar to the one at Sukaesih's factory. This year,
in late April, 10,000 workers at a Nike subcontractor in Indonesia held
two wildcat strikes to demand that their employer-the PT Hardaya Aneka
Shoes Industry, on Jakarta's outskirts-comply with the country's new
minimum wage of US$2.46 a day. The HASI factory owners had requested
exemption from the new wage, claiming that an extra 20 cents would result
in financial hardship.
Nike Canada's McSorley points out that the factory where Sukaesih
worked is under new management and has met workers' demands, but Ballinger
says this is small consolation for Sukaesih, jobless for years and with
little chance of compensation. Both he and Sukaesih believe she and
the other workers fired in January 1993 were scapegoated to prevent
others from challenging poor working conditions and low pay.
When employees at Nike subcontracting factories break rules, retribution
is often swift. On International Women's Day this year, at the Nike
Pouchen shoemaking factory in Dong Nai, Vietnam, 56 young women were
punished for failing to wear regulation footwear. Instead of putting
on plastic flip-flops for work, the women entered the factory with outdoor
thongs. Angry supervisors ordered them back outside. In the sweltering
sun, they were forced to run around the complex wearing not the fabled
running shoes they stitch and glue but flimsy sandals. Twelve women
collapsed, according to various sources. They were taken to hospital
by coworkers. The incident might have passed unnoticed outside Vietnam
had it not been for Thuyen Nguyen, a Wall Street investment consultant
who read about it in Vietnamese newspapers. Nguyen, who happened to
be in Vietnam at the time, was on a personal mission to investigate
allegations of labour abuses at Nike's five Vietnamese shoe subcontractors,
which employ 32,000 people. He had seen a CBS documentary about mistreatment
of workers at Vietnamese factories making Nike shoes and was so distressed
that, together with friends, he started a group called Vietnam Labor
Watch to monitor American companies in Vietnam.
"Nike invited us to go to Vietnam," Nguyen says in a phone interview
from New York City. "We went there and they took us on a factory tour
and basically said, 'That's it; you can go home now.' And we said, 'We
need to talk to the workers without factory managers present.' They
said, 'Okay, we can't help you there.' So there we were in Vietnam,
investigating on our own. Nike told us CBS was exaggerating, but things
were even worse than CBS had reported."
After six months of research in Vietnam and the U.S., and after confidential
interviews with off-shift Nike workers, Nguyen gave the company a list
of abuses he had discovered: forced knee bends and push-ups for workers
who accidentally broke sewing needles; employees' mouths taped shut
for talking to coworkers; bathroom use restricted to one visit in an
eight-hour shift; drinking of water allowed only twice during a shift;
workers collapsing on the assembly line from exhaustion, heat, and poor
nutrition; and sexual harassment by supervisors.
Nguyen included copies of pay stubs proving that workers were receiving
less than the monthly minimum wage of US$45 and that some put in 70
or 80 hours of overtime a month, violating Vietnamese labour laws. He
says Nike never responded. Nguyen says he threw his swoosh shoes in
the closet and went public. "It's not like these workers are asking
to share the wealth that Phil Knight has," says Nguyen, who will be
participating in the October 18 demonstration in either Washington,
D.C., or New York City. "They're just asking for enough money to live
on. They are asking to be treated okay. They just ask not to be beat
up once in a while. They ask that they not be forced to work so many
hours of overtime. These are not major demands. They are very practical,
humane demands."
Nguyen, who will return to Vietnam in November to continue his investigations,
says subcontractors recently made it even more difficult to monitor
working conditions. After Nguyen gave a copy of his report to the Vietnamese
government, he says, the Sam Yang Vietnam Co. sent a letter to workers
apologizing for violating Vietnam's legal overtime limit for the whole
of 1997 during just the first four months of the year. But copies of
May pay stubs from the subcontractor, sent to Nguyen and passed on to
the Georgia Straight, show that the company no longer puts overtime
hours on pay stubs. "They just put in the amount that the worker got
paid without explaining where the amount comes from," Nguyen says. "The
factory did that to circumvent our monitoring effort."
Although Nike chose to ignore Nguyen and Vietnam Labor Watch, it responded
swiftly to the more recent study of working conditions at its subcontracting
factories in China, showing that the company is increasingly concerned
about negative publicity. Although Nike's sales and profits do not appear
to have suffered as a result of the campaign, UBC's Pollay says a long-term
campaign would likely start to drive customers away. "If people start
to feel that Nike is, for example, an inferior good because of the way
in which it is manufactured, it's pretty easy for them to shift their
purchasing behaviour to other brands of running shoes," says Pollay,
who will use Nike as an example this fall to introduce UBC business
students to the concept of consumer campaigns.
The Chinese study, conducted by the Hong Kong Christian Industrial
Committee and the Hong Kong-based Asia Monitor Resource Centre, concluded
that working conditions have worsened since 1995 in both Nike and Reebok
subcontracting factories. "All categories of the companies' Codes of
Conduct-health and safety, freedom of association, wages and benefits,
hours of work, overtime compensation, nondiscrimination, harassment
and child labor-are being violated," according to the report, which
conducted detailed employee interviews.
At the Wellco factory, a Nike subcontractor on the Pearl River Delta
employing 8,000 people, researchers found employees working an 11-hour
shift, as well as two to four hours of overtime each day. The long hours
violate both Chinese labour law, which allows only 36 hours of overtime
a month, and Nike's own code of conduct, which allows a 48-hour work
week with only 12 hours of overtime. If workers refuse, according to
the report, they can be fined up to US$3.61 or docked the entire day's
pay.
The study, made public the day before Nike's annual shareholders'
meeting on September 22, prompted Dusty Kidd, Nike's director of labour
practices, to issue a news release calling the company's critics "fringe
groups which are again using the Internet and fax modems to promote
mis-truths and distortions for their own purposes". Nike claims that
no Wellco employees earn less than the minimum wage of US$1.90 a day
for eight hours of work and that the average salary for "direct labour"
in July 1997 was about US$82 a month. The company also says that no
one under 16 works at Wellco in any capacity. Nike's McSorley points
out that in August 1997, Wellco was provided with pocket-sized Nike
code-of-conduct cards for each employee. But Nike has yet to respond
to other findings by the human-rights groups, including forced overtime,
industrial accidents resulting in the loss of fingers, workers required
to pay a pre-hiring deposit that is kept for one year or until they
leave the factory under favourable conditions, and fines for such misdemeanours
as missing morning calisthenics.
On the same day that Nike responded to the China study, it announced
it had severed its relationship with three Indonesian apparel subcontractors
who failed to comply with its code-of-conduct requirements for wages
and working conditions. But Bissell, of the Campaign for Labor Rights,
points out that Nike's critics are not trying to drive the company out
of particular factories or countries-on the contrary, he says, they
are urging Nike to work with subcontractors to improve conditions for
workers. "While there hasn't been a systematic policy change, we're
keeping the heat on," Bissell says. "Every time there's a scandal and
Nike's critics publicize it and make it a scandal, Nike comes back and
says 'We've dealt with that; I wish these critics would stop bringing
up old business.' Well, the only reason they've dealt with those scandals
is because we got on their case. They criticize the very people who
are forcing them to do the right things."
Nike's Chappell says the company has been sensitive to concerns raised
about overseas operations. "We have continued to improve what we do,
and part of the improvement, of course, has been because issues and
concerns have been brought to our attention in various ways. At any
one time on any given day, we've got 500,000 people making footwear
and apparel for Nike in various parts of the world. So it's the size
of a small city. I think one or two people, as there are in any city.are
going to do something foolish or do something that really is not the
way anyone wanted it to be. What we have to do is to try to keep that
at an absolute minimum."
In fact, allegations of labour abuses at Nike's overseas operations
reached such a crescendo earlier this year that the company hired Andrew
Young, former U.S. ambassador to the United Nations, to investigate.
Young's Atlanta business, GoodWorks International, sent the former ambassador
on a flying tour of 12 Nike factories in three countries in 10 days.
When Young released his report in June, Nike took out full-page ads
in major newspapers such as the New York Times and the Washington Post.
The ads quoted Young as saying: "It is my sincere belief that Nike is
doing a good job.but Nike can and should do better."
Nike seems to have gotten its public-relations message-that things
are fine in overseas factories that make its products-across with aplomb.
Asked about Nike's track record in Third World countries, Canadian athletes
and coaches such as Smith, McNeill, and Enns cite the GoodWorks report
as evidence that Nike has taken concrete action to address criticism.
Yet Nguyen and others point to several serious flaws in Young's research.
Nguyen says the use of company translators to obtain information from
workers and the three to four hours Young spent in each factory severely
limited his ability to ascertain true working conditions. "No worker
will complain in front of the boss. The workers [ in Vietnam
] told us that when there's a visitor, they are warned not to say anything.
When there's a visitor, the factories are cleaned up, they're allowed
to work a little bit slower. To visit without actually talking to the
workers themselves outside the factory is just going through a show."
At the back of his report, Young lists nongovernmental organizations
"with whom GoodWorks met or spoke". Ballinger is listed, and so is Bertrand,
from Development and Peace. So is Medea Benjamin, executive director
of Global Exchange, the San Francisco-based human-rights group that
distributed the China study on behalf of the Hong Kong groups.
Yet Benjamin says she was never consulted by Young or anyone else
from GoodWorks. "I was shocked to see my name there. I had called his
[ Young's ] office many times to set up a meeting and I never
got a response." Ballinger says his phone conversation with Young lasted
only 20 minutes and his views were not represented in the report. And
Bertrand says he had two short conversations with GoodWorks and in neither
case was his opinion even solicited. "This is very misleading," he says.
"It gives the impression that I had substantial conversations with them,
but we never had any. The first time I called them and asked about their
mandate. The second time I returned a call and we talked about a meeting
in Washington that never took place." Critics say another major flaw
in Young's glossy report is his refusal to address the controversial
issue of wages. In the report, Young says he was not asked by Nike to
address "cost of living" issues. "While it is tempting to criticize
a few highly visible and successful companies for paying 'low wages,'
meaningful reform can only be achieved through national law or international
standards that enforce a 'level playing field' for all companies, not
just a few," he wrote.
Yet one might think that any study worth its salt would have made
at least an attempt to address this issue, a key one for workers who
make Nike products, Bissell says. The April strikes by thousands of
Indonesian Nike workers were over wage issues. Wages were also a major
grievance in the wildcat strike that resulted in Sukaesih being fired
in January 1993. Nguyen says low wages are a major complaint of Vietnamese
workers. The study of Nike and Reebok operations in China alleges that
subcontractors for both companies violate minimum-wage laws. Workers
at Nike's Wellco factory receive as little as US$30 a month before overtime,
while the minimum state wage is US$42 a month, according to the study.
It reports "many wildcat strikes" in the factory during the past two
years.
Chappell, however, says Nike pays "quite a long way in excess" of
minimum wages in each country. Less than two dollars a day may not sound
like a lot to Canadians, but Chappell says it is plenty to live on in
a country like Vietnam. "We're comparing Canadian wages to Vietnamese
wages, and, of course, the purchasing power is quite different. In countries
like Vietnam, we're paying about twice what the average manufacturing
wage is, and that enables people to maintain the lifestyle that they
have and save some money. One thing that's very important to the folks
working in our factories is that they're able to help care for extended
families, so if they're living at home, they're helping support other
children. If they're not living at home, they're sending money home.
And the average savings that we've been able to identify is that they're
saving somewhere between 25 and 40 percent of what they get paid."
However, none of the 35 workers interviewed by Nguyen were able to
live on the basic factory wage of about US$1.60 a day. Renting a room
costs about $6 a month. A simple meal of rice, tofu, and vegetables
costs 70 cents; three meals a day would cost US$2.10. As a result, according
to Vietnam Labor Watch's report, workers skip meals and eat less. Some
receive gifts of food from family members.
Given Nike's rosy financial health, Ballinger and other critics argue
that the company could easily afford to improve basic working conditions
in plants that make its products. Providing clean drinking water for
800 workers in an Indonesian factory would cost US$80 a day, Ballinger
says. Contracting Indonesian nongovernmental organizations to conduct
independent monitoring of Nike subcontractors to ensure compliance with
the company's code of conduct would cost US$300,000 a year, he says.
Paying the half-million labourers who make Nike products a "living wage"-an
additional annual cost of US$60 million, according to Press for Change-would
have reduced Nike's 1997 revenues from US$9.19 billion to US $9.13 billion,
a drop of less than one percent.
At the University of Victoria's National Coaching Institute, where
Bev Smith is an apprentice coach this fall, the former basketball star
is showing the 13-member UVic women's basketball team, the Vikes, new
tricks for making a "fast break", the transition from defence to offence.
On her feet are a pair of Air Max, men's size 10, courtesy of Nike.
"I'm teaching athletes about morals and ethics within a team," Smith
says. "I told them it's funny how your principles change when you have
to deal with survival. Maybe it's a selfish way of looking at it, but
I'm a basketball coach. I would like to do the right thing for everybody
in the situation, but I'm concerned about me and my team first. It would
be my hope that the [ Nike ] people I deal with in Canada-they
are decent individuals-are trying to do the right thing." Sukaesih wears
cheap blue canvas sneakers made in China, a gift from an American well-wisher.
She tried on a pair of Air Jordans once, at Niketown in Oregon. "The
shoes were so nice, and I felt I was just equal with Michael Jordan.
But I would never be able to afford them," she says. "An Indonesian
[ Nike ] worker would have to work for three months to buy a
pair. Three months if you don't eat, don't pay rent. Nike has a slogan:
Just Do It. And Just Do It on the factory floor is different than the
Just Do It they portray on television and everywhere in Canada and in
the United States. On the factory floor, that means work really hard,
do as much overtime as you can. The people who sew the swoosh sign have
to stand up for hours and hours. Some of them faint just to sew that
swoosh sign. I do hope that there will be some changes. But I don't
know how much I can hope for."
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