NIKPR~1.txt is a Nike Inc. file; part of nikeworkers.com series; created Friday, June 19, 1998 5:38:16 PM; modified Saturday, February 14, 1998 2:55:02 PM; save by D. Boje as NIKprnodate1 (file origins).  

Reaffirms progress in labor practices in response to allegations made by Global Exchange

BEAVERTON, Ore. — NIKE today challenged allegations made about four

Chinese sub- contracted factories utilized by athletic footwear companies, including NIKE. NIKE’s strong response was in reaction to receiving a copy of the report being promoted by Global Exchange, a San Francisco-based organization with a history of factual misrepresentation on worker issues within factories.

"The report incorrectly states the wages earned by workers, makes irresponsible accusations about worker health and safety and is just plain wrong in its assertion that NIKE’s Code of Conduct is not made available to workers," said Dusty Kidd, Director of Labor Practices for NIKE.

"Enough is enough. It’s time for the public magnifying glass to be focused back on these fringe groups, which are again using the Internet and fax modems to promote mis-truths and distortions for their own purposes. NIKE’s labor practices have been monitored by credible international organizations such as Ernst & Young (since 1994) and Price Waterhouse. Organizations such as Global Exchange must be held to the same standards of truth and honest disclosure as NIKE and other sporting goods manufacturers."

Immediately upon receiving the report last week, NIKE investigated the allegations and determined the report was replete with errors and distortions.

"For those who have taken the time to learn and understand the facts, such as the General Board of Pension and Health Benefits of the United Methodist Church and former United Nations Ambassador Andrew Young, the response has been uniform: NIKE takes seriously the issue of overseas labor and is making significant progress in continually improving overseas working conditions," Kidd said.

"While those who have observed first hand the working conditions in our factories will undoubtedly dismiss this report, largely anecdotal reports such as this unfortunately tend to receive media attention and generate a life of their own. Therefore, NIKE must continue to set the record straight."

"NIKE is committed to not only making the world’s best products, but making them in the very best working conditions," Kidd said. Workers who make our products are paid superior wages and do, in fact, work in good, clean, safe conditions. "At NIKE we are proud of the over 500,000 jobs we’ve helped create worldwide. We stand by our record of opposing gender and racial discrimination or abuse of any kind in the workplace. NIKE supports and has demonstrated our commitment to creating opportunity for those who wear our products as well as those who make them."

We will not be deterred by those that choose to use exaggerations and mis-truths in an attempt to serve their own purposes. We are and will continue to work with responsible third-party organizations, such as the President’s Apparel Industry Partnership who are as truly interested in improving the working conditions of workers around the globe as we are," Kidd added.

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@2 undated press release on nike web.

CORRECTING THE RECORD ON CHINA LABOR ALLEGATIONS

NIKE thoroughly investigated the current report being circulated by Global Exchange regarding the working conditions and wages paid by two subcontractors in China that are used by athletic footwear manufacturers, including NIKE. The two factories cited are the Wellco factory and the Yue Yuen factory.

Myth: The report concludes that the pay scale starts below the minimum wage and rarely climbs higher.

Facts:

At Yue Yuen, the average wage of direct labor workers is more than Rmb 650 per month, well above the authorized minimum wage of Rmb 350.

At Wellco, the average salary for direct labor in July 1997 was Rmb 686 and no employee earns below the minimum wage.

Myth: The report claims that work-related health problems and injuries are commonplace at both factories. The report continues to state that many workers have died due to inhaling fumes in the workplace.

Facts:

No person at Wellco has ever died on the job from fumes or from any other cause.

To eliminate fumes from the workplace and protect workers, Wellco uses

water-based solvents and mold-release agents in manufacturing, as do most subcontractors used by apparel industry manufacturers.

In conjunction with NIKE, Yue Yuen has performed its own surveys of air quality within its factory. In the first set of tests, the two factory units making apparel products met or exceeded Occupational Safety and Health Administration (OSHA) standards in 90 percent of the tests. Since that study, Yue Yuen has installed water-based equipment and processes for the majority of the lasting and stockfit lines. In addition, safety training on workplace equipment has been redoubled.

Yue Yuen has spent over US$500,000 on fire safety equipment (fire engines, etc.), and has conducted evacuation drills with ALL workers in the factory.

Myth: The report claims that almost all of the Yue Yuen and Wellco workers had not heard of a Code of Conduct to protect them in the workplace nor knew such a code existed. The erroneous report also claims that NIKE is not making the Code it created in 1992 available to employees.

Facts:

Yue Yuen has had NIKE’s Code of Conduct posted in simplified Chinese characters in major work spaces for over two years. This summer, well in advance of NIKE's new global initiative, NIKE provided Yue Yen’s workers with pocket-sized cards that explains NIKE’s Code of Conduct. The card also explains health and safety procedures for the workplace.

In 1994 Wellco posted an oversize (1.9m x 1.9m) poster at the factory gate. The poster outlined NIKE’s Code of Conduct in Chinese, Korean and English for everyone to understand -- both management and workers.

As of 1995, every workplace in the Wellco factory has had NIKE’s Code of Conduct posted.

In June 1997, Wellco provided NIKE’s Code of Conduct in Chinese to each

employee. In August 1997, NIKE provided Wellco with pocket-sized Code of Conduct cards that made NIKE’s Code immediately accessible to each employee. Wellco and Yue Yuen are both in the process of implementing other recommendations made by Ambassador Andrew Young (in his June report) and by NIKE U.S. As of now, both factories are ahead of the outlined schedule for implementation.

Myth: The report claims that Wellco employs children aged thirteen to fifteen years old in the sewing, handwork and cutting departments.

Facts:

NIKE's standard on this issue is unequivocal. NIKE and Wellco have worked together to guarantee that no person under the legal age of 16 years old work at the factory in any capacity. If anyone has slipped through this process using forged documents, it is not through lack of a genuine, focused and continuous program to protect the factory and disallow child labor. Wellco keeps careful records of applicants who have attempted to gain employment with false documentation. Wellco's hiring procedure, which conforms with requirements of NIKE's Code of Conduct compliance procedures, requires four documents to secure employment: an ID card; a residence permit; a work permit; and a health certificate.

Myth: The report claims that social security benefits, health care, child care and bereavement leave were not provided by Yue Yuen.

Facts:

Yue Yuen provides 41 doctors and 58-nurse/staff clinic to its employees. It also makes available a child care center that accommodates more than 100 children. All employees of Yue Yuen are entitled to eight days of bereavement leave.

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