International sportswear company, Nike, Inc. has reportedly been exploiting their workers in overseas factories in a number of developing countries. Dubbed as sweatshop factories, the sportswear companies have factory operations in China, Vietnam, and Indonesia.
Oxfam Australia has reported the conditions of the Nike factory workers in Indonesia. The International non-government organization shared that eighty percent of Nike workers are women within the age of 17 to 29. Majority of the workers meanwhile lived in extreme poverty, their full-time wages of $2 each day. Apart from the low wages, the Nike workforce are working under hazardous conditions and are constantly subjected to abuse and harassments of factory managers thinking that this will increase the productivity of the workers.
A research report published by Oxfam mentioned that while there were improvements in the working conditions, there are significant areas that needed to be addressed. Pressures in the workplace have decreased slightly but dangers in the work environment remains. Health concerns such as respiratory illness and threats of amputations from unguarded cutting machines threaten the safety and well-being of workers. The said workers are often threatened of dismissal or physical assault if they participate and join independent unions.
Nike has again faced another series of condemnations when two of its factory in Honduras abruptly closed last year without disclosing the reasons behind the closure in January 19, 2009. The factories in Choloma and San Pedro Sula left 1,700 Honduran workers without jobs, health insurance and severance pay amounting to $ 2.6 million. Nike has strongly argued that its factories in Honduras are within the control of its sub-contractors and has consistently cited their policy granting sub-contractors the independence to settle the compensation of its factory workers. Nike has consistently disavowed any responsibility of providing compensation lies on their sub-contractors.
With Nike’s poor response in addressing the plight of the sweatshop workers, the corporation received international condemnation for its failure to protect the rights of its workers. A number of Universities in the United States that were sourcing their collegiate apparel with Nike have expressed similar sentiments and have even severed and re-assess their ties with the sportswear company. Among these Universities are Nike CEO Phil Knight’s alma mater – University of Oregon and recently the University of Wisconsin and University of Washington.
The issues on sweatshop factories have affected the relationship of the University of Oregon and Nike, Inc. after the University decided to be part of the Workers Rights Consortium which actively campaigns against Nike’s labor practices. Angered by the University’s decision, Nike, Inc. through CEO Knight, has retracted its $ 30 million contribution to the academic institution and has refused to provide further contributions to the University.
Meanwhile, the University of Wisconsin took a strong stand against the treatment of Honduras workers by cancelling its licensing agreement with Nike. University Chancellor Biddy Martin claimed that the company has not done enough to assist the workers in claiming their severance pays and does not intend to develop long-term measures that will help the workers.
The University of Washington also took a similar stance by demanding an explanation from Nike regarding its unacceptable treatment of the Honduras laborers. University President Mark Emmert sent a letter to the company expressing that the relationship between the two parties shall depend of Nike’s prompt resolution of the plight of the workers.
The increasing ire of the Universities against the inaction of Nike particularly in the Honduras case can pose a greater threat to the corporation. The universities, faculty and student activists’ clout have been increasing in the past years and have succeeded in providing significant concessions in major player in the industry of athletic apparel. The groups successfully campaigned to the Russell Athletic which agreed to rehire 1,200 workers and re-open a factory in Honduras.
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