NIKTuksummary
 

            NIKE FACTORY WORKERS IN SE ASIA HELP SUPPORT
           THEIR FAMILIES AND HAVE DISCRETIONARY INCOME,
           ACCORDING TO PRELIMINARY FINDINGS OF STUDY BY
              MBA TEAM FROM DARTMOUTH’S TUCK SCHOOL

 

     (Beaverton, OR.) Preliminary findings from a study of worker’s spending patterns in
     Vietnam and Indonesia by a team from Dartmouth College indicates that NIKE
     contract factory workers can meet basic needs and, in addition, have income for
     discretionary spending or, in some cases, savings.

     "The Tuck Team’s data suggests NIKE workers in Indonesia and Vietnam can more
     than make ends meet," according to Eugene B. Mihaly, who co-supervised the Tuck
     project along with Professor Joseph A. Massey, Dartmouth Center for Asia and the
     Emerging Economies. Mihaly is an adjunct professor of International Business at
     Dartmouth’s Amos Tuck School of Business.

     Other key findings include:

               In Vietnam, the factory worker monthly wages (mean) at the Sam
               Yang and Chang Shin factories (located in the Dong Nai
               province) are approximately 554,000 VND ($47 USD) and
               653,000 VND ($56 USD) respectively. After incurring monthly
               expenses on essentials (food, clothing, etc.) of 322,000 VND
               ($27 USD) and 348,000 VND ($29 USD) respectively, the
               workers documented savings or discretionary monthly income
               between 232,000-305,000 VND ($19-$26 USD) . The monthly
               minimum wage is $35 USD in Dong Nai where Chang Shin is
               located and $45 USD in Cu Chi, the locale for Sam Yang.
               According to the research, the annual per capita income of NIKE
               contract factory workers at these two facilities is between
               $545-$566, well above the estimated $250-300 annual per
               capita wage cited by other in-country income research. 
               In Vietnam, daily food expenditures for individuals are between
               40 cents and 43 cents. (USD) 
               In Indonesia, where many wage and benefit allowances are
               mandated by law, surveyed workers across all demographic
               groups earned an average of 250,000 Rp ($96 USD) monthly.
               This figure includes both legally required wage benefits and
               non-mandated benefits such as attendance bonuses and other
               supplemental factory income. In addition, the minimal levels of
               overtime (mostly voluntary and in some factories, required) during
               this period in 1997 comprise a portion of this wage rate. The
               mandated Indonesian minimum wage is 172,500 Rp ($66 USD)
               per month. 
               In Indonesia, almost 90% of the single respondents living away
               from home send money to their families. 

     NIKE President & COO Thomas Clarke responded to the study results by stating,
     "NIKE has created 500,000 highly desired, good paying jobs in 32 countries
     including, Vietnam and Indonesia. Every job vacancy attracts hundreds of people
     seeking a job in a NIKE contract factory. This study marks the first instance where a
     research team from a prestigious business school has been able to examine wages and
     expenditure patterns using two highly reliable sources—the actual household spending
     of the workers themselves and the World Bank." 

     The research was conducted over several weeks in both countries, utilizing
     methodology that included extensive household interviews and questionnaires with
     NIKE and non-NIKE factory workers; surveys in local food markets to determine
     spending patterns and a "market baskets of goods" of food staples; and, reviews of
     past wage and living studies in the two countries conducted by the World Bank and
     non-governmental organizations who have published research on living standards in
     developing economies.

     The NIKE study was conducted by MBA candidates from Dartmouth University’s
     Amos Tuck School of Business, located in West Lebanon, New Hampshire.

     The faculty/MBA student team from Dartmouth’s Tuck School have also conducted
     business analyses and research for other global companies including Disney, Citibank,
     Motorola and Hewlett Packard.

 

                           nikeworkers.com   Ask Us