The recent article, “Lecture series on sweatshops to unveil Indonesian report,” (ODE, Nov. 13), raised questions regarding Nike’s labor practices in Indonesia. I would like to provide clarity for your readers about Nike’s business in Indonesia and in the other 52 countries, including the United States, where our products are manufactured.
First and foremost, Oregon students, faculty and staff should feel confident knowing that products with the Ducks’ logo, whether made in the United States or abroad, were made under well-established standards and regularly monitored working conditions. In addition to external independent monitoring, Nike currently has more than 30 employees dedicated to ensuring that the workers at more than 850 contract factory sites throughout the world have good wages and a safe, fair and healthy work environment.
Nike offers good wages, benefits and desirable jobs in countries where wages are low and jobs are scarce. In many cases, entry-level workers earn more in cash and allowances than local governments require. In addition to fair wages, most workers also receive benefits such as housing, transportation, on-site health care and meals. With these additional benefits, Nike’s contract factory employees in some countries are compensated equal to — or better than — other professionals, such as teachers, police officers or farmers.
In Indonesia, Nike engaged in a transparent assessment of our operations with an independent entity, the Global Alliance for Workers and Communities. Although some disturbing issues were identified in more than 4,000 interviews with workers at nine factories, a couple of irrefutable facts emerged from the academic-based research. An overwhelming majority of the workers expressed satisfaction with job skills training and recreation services at the factory. A majority of workers also reported satisfaction with their relationship with supervisors and managers.
As the economy struggled in Indonesia, Nike also increased wages more than 40 percent for entry-level Indonesian factory workers. Periodic independent university studies have shown many workers earn enough to send funds home to relatives and dependents.
In July 2000, a Wisconsin State Journal reporter provided this view of a Nike contract factory in Indonesia: “The factory in Tangerang with 5,355 workers is modern and clean, better than some I have seen in the United States. In a country with an economic crisis, 30 percent unemployment and 60 percent of the people living below the poverty line, jobs here are very desirable.”
In addition, an editorial by the Asian Wall Street Journal in March 2001 regarding the Global Alliance study provides further insight into Nike’s efforts in Indonesia, stating in part, “The truth of the matter is that many corporations are responsible employers that now demonstrate proactive concern for workers making their products. Nike deserves applause for being a leader in standards for others to follow.”
Nike can and will continue to make improvements in the way we do business in the United States and abroad. Please visit our Web site at www.nikebiz.com for an online factory tour, the newly published Nike Corporate Responsibility annual report, and the most current information about Nike’s corporate responsibility programs.