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Nikewatch campaigner Tim Connor. Photo: Martin Wurt/OxfamAUS
NikeWatch
Who is Nike?
The money: $15 billion revenue for financial year ending 31 May 2006
The labels: Nike, Cole Haan, Bauer Nike, Hockey, Hurley International, Converse and Exeter Brands Group
The boss: Mark G. Parkeris Chief Executive Officer, Nike Inc.
The workers: In 2006, Nike-branded products were made by more than 800,000 workers in almost 700 contract factories in 52 countries around the world. 80 per cent of these workers are women aged 18 to 24. Source: www.nike.com
The locations: Nike uses Asian contract suppliers for most of its footwear production. In 2006, this included China (35%), Vietnam (29%), Indonesia (21%) and Thailand (13%). Source: www.nike.com
Is there still a problem?
Yes there are still problems with Nike. While Nike spends millions of dollars sponsoring individual athletes, workers making Nike continue to receive poverty wages and work under extreme pressure for long hours.
Nike has become more responsive when cases of labour rights violations in specific suppliers are bought to its attention and conditions have improved in a few of its supplier factories — but workers rights, decent wages and conditions need to be implemented in all of Nike’s factories all of the time — not just in some factories some of the time.
Nike has acknowledged that systemic change, not just the resolution of incidents of code violations, is needed. This change needs to happen now. We wrote to Nike encouraging change (Jan 2008)
Poverty wages
Nike won’t commit to a living wage for workers making Nike products. We define a living wage as one which, for a full-time working week (without overtime), would be enough for a family to meet its basic needs and allow a small amount for discretionary spending.
Nike's Vice President of Corporate Responsibility, Hannah Jones, says: “In a highly competitive global economy, we do not support wages that are arbitrarily set based on living wage formulas.”
Rights denied
Nike continues to get its gear made in countries and free trade zones where it is illegal, extremely difficult, or prohibited for workers to organise into trade unions. It is near impossible for workers to get better conditions (such as better pay) when they cannot get together and form a united, organised group to approach their boss.
No one's listening
Nike does not have a way that effectively allows workers in all its supplier factories to confidentially complain if they are suffering sexual harassment or other labour rights abuses in the workplace. Most Nike workers don’t even know that they can complain and the complaint mechanisms which are in place don’t have the resources to deal with many complaints.
Commitment phobia
Nike moves its production where it likes, whenever it likes, and does not give any bonuses or incentives to factories that respect workers rights. Nike does not ban or severely restrict short-term contracts in its supplier factories. This means that workers can lose their jobs from one contract to the next and be left with nothing.
Find out more about how sports brands are tackling the problem of sweatshops in their industry in our Offside! report