Nike is Just In Time:

Rhetoric versus the End of Sweatshop Reality ***

 http://cbae.nmsu.edu/~dboje

David M. Boje, Ph.D. July 30, 2000

NOTE: The transcript excerpts in Table One are from the Video Tape of a March 17, 2000 IABS (International Association For Business & Society) meeting chaired by  Professor Richard Wokutch. That Tape is for "EDUCATIONAL PURPOSES ONLY." That means providing it here on the web for someone who might use the tape for "RESEARCH PURPOSES ONLY" raises a significant ethical issue. Amanda Tucker and I met August 9th and discussed the situation. I agreed that if either the IABS or the Nike Corporation wanted the transcripts used in Table One in the second half of this background paper removed from the web, I would do so at one. 

UPDATE

At 09:41 PM 8/30/00 -0400, Richard E. Wokutch wrote:
>David:
>
>I recently checked out your website and was surprised to see that you still
>had excerpts of the transcript of the Nike debate that I chaired at the
>IABS meetings on it. I was further surpised to see that you had apparently
>added a number of personal attacks on me for questioning your use of the
>tape in this manner. I am now formally asking you to remove the transcript
>from your website and to refrain from using it except under the conditions
>you agreed to when you purchased the tape.

            "Richard E. Wokutch" wokutch@vt.edu 

 

RESPONSE : I removed the excerpts from the TABLE BELOW on August 31, 2000..

I want to raise the following issue. This is the second time the claim for "EDUCATIONAL PURPOSES ONLY" has been raised as a challenge. The first was the taping of my debate with Tom Peters at the Organizational Behavior Teaching Conference.  During Tom Peters' key note address to the conference, he disclosed that he owned a rug factory in India (Press here for that debate story). When I raised issues to Tom at that session  (i.e. level of pay --26 cents an hour, the age of the workers -- they were young girls, and the ethics of owning a sweatshop in India while claiming to be ethical) "FOR EDUCATIONAL PURPOSES ONLY" became the pretext of the OBTC board of governors to NOT EVER release the tape for RESEARCH PURPOSES.  To my knowledge, the video tape of Tom Peters' remarks and my critical challenges has not been released for either purpose. 

Finally, I think there is an issue here of FREEDOM of SPEECH.  In both instances the "EDUCATIONAL PURPOSES ONLY" decision is used to control power and knowledge. In both cases, I am prevented from doing research on what is public and open testimony to assembled university professors and management. Why the secrecy? Why is it not ethical to research videos that are done to educate managers, teachers, and researchers? I have heard it said that Nike is going to use the IABS tape to educate its Labor Practices Department employees, since Amanda Tucker did a great job (it is said) in devastating her critic Jeff Ballinger of Press for Change. There are are all kinds of educational purposes at issue here. 

In addition Richard Wokutch has been touring Nike factories with Amanda Tucker (according to his commnents to me at the Toronto session August 9th, 2000). What is he paid? What factories did he tour? (press here for list of factories not on that tour). What is the relationship between "For Educational Purposes Only" agreements at IABS and the arrangements of those tours by Nike Corporation? What good are pre-announced, Nike-selected tours? Is this education or research? 

What is the probability that both Nike Corporation and IABS to agree to allow their Tape to be used for RESEARCH PURPOSES? About as likely as OBTC ever releasing the Tom Peters Video. 

I would like to close by pointing out that at the Toronto Academy of Management Meetings, Amanda Tucker and Nike have given their gracious consent to release the transcript of Amanda's remarks to the WWW. However, the "FOR RESEARCH PURPOSES ONLY" challenge was used by two academic presenters to have their remarks go untaped at the session. The reason given was that having taped remarks of the researchers released before the project was finished could taint or bias the subject's responses. Note that while the Academy of Management wanted to make a video of the session on August 9th in Tornoto, we could only do an audio tape of Amanda, myself and several other academics who gave their agreement. 

These are complex ethical issues.  When is public data public? When can you relase a video tape of a supposedly "open" presenation?  What is the relationship between power and knowledge?  When do we get to hear the story from the workers in India (in the case of Tom Peters) and In China (in the case of Nike)? 

In short, Table One may not exist on the web for very long. Enjoy it till it disappears.  

- David Boje August 11th, 2000. 


 

This is a background paper I prepared to get ready for the Toronto Meetings  session on "Time and Nike." (For the Toronto 2000 presentations please press here).  For TWO Calls for Papers - Journal Special Issues - press here

I would like to end sweatshops run by Multinational Corporations for all time. And I think, Nike's narrative is running out of time. This is a double meaning (out of time and outside of time). Academic researchers are questioning the research methodology and the interpretative claims being made by corporate-sponsored as well as NGO-sponsored research.  I can not impress how important it is to an ethical global economy that this research continue.

What is the narrative that is out of time. It is the title of Phil Knights 1962  Stanford Business School term paper: "Can Japanese Sports Shoes do to German Sports Shoes what Japanese Cameras did to German Cameras?"  In 1968 the narrative was embellish with Greek mythology when Phil Knight paid a student $35.00 for the Swoosh design. The rest is history. But what is not history is Nike's "Just in Time" renarrations of its corporate identity, an identity that is out of time. And the marker for this time is the move from "Just do It" to "I can." We will look at the two variations of out of time and then at some examples. 

First, Nike's narrative is outside of time, beyond the flow of time so that what Nike claims to be is at odds with its own auditors' reporting (press here for 13 January 1997 Ernst & Young Audit Report). The Greek goddess myth of Nike, the winged victory narrative is itself timeless, but that narrative is coming into contact with the material conditions of Nike work.  If Nike's narrative of corporate-self is out of sync with time, its spin machine (both with reference to the winged goddess and to claims to reform) is outside time itself. The mythic goddess narrative is subject to strategic changes in image.   

Second, Nike's narrative, is "out of time" in the sense that NGO and media responses to a Nike story happened in accelerated time, an instant response, one to the other. Nike's strategic narrative is changing more rapidly over time. It is not the same narrative as a decade ago, and is more different each day. Nike's narrative is "out of time" in the way kids are becoming "anti-Nike" because they do not want to wear the shoes their parents way. What was hip for parents is not so hip for kids. In 1998 the Nike "coolest brand" index for kids fell from 52% to only 40% cool. Skateboarders won't wear Nike because their parents do.  And Adidas is making a comeback by being the "anti-Nike" choice.  Swoosh is perceived as 'establishment, so the underdog, Adidas, saw a 98% increase in sales (Carty, 1999). Candie Women's Shoes is running ads by MTV star Jenny McCarthy that shout "Just Screw It" (Solomon, 1998; Carty, 1999).  And New Balance is making most of its sneakers in the U.S. which is counter to Nike's claim that it is economically impossible. Plus while Nike spends $750 million on ads and endorsements, New Balance spends only $4 million. 

I shall argue along with Carty (1999) that consumers are becoming increasingly ambivalent about Nike's message of (hyper) competition and victory at all costs.  Consumers are beginning to see a dark side to the Nike image, that goes beyond its labor practices.  Nike is moving from "rebel" to just plain "bully" in the minds of too many consumers.  But labor is also an issue. Nike-sponsored research reveals that concern over labor conditions is an issue coming up in focus groups for girls as young as 12 (Carty, 1999: 65). And as the "poster boy of globalization" Nike is smack in the middle of the post-WTO protest over the marriage of post-industrial capitalism and postmodern culture. In this marriage consumption of desire drives the post-industrial production. Nike is not only a virtual network company with 450 sub-contract producers it is a network of distributor and endorsement contractors (from sports starts, Footlocker and other outlets, to universities). 

We know more about the virtual core and its three-tier networking of producers than we do about the networking of Nike distribution. In the production network, Nike's semi-periphery consists of S. Korea and Taiwan where workers are better paid but whose production is limited to high tech sneaker components.  The second tier is more peripheral, the less developed mass-production partners of China and Indonesian factories (managed by S. Korean and Taiwanese managers). In the third-periphery the cheapest labor of Thailand and Vietnam, again managed by the S. Korean and Taiwanese (semi-periphery) makes the lowest cost shoes with the least sophisticated technology.  Nike has been exceedingly resistant to tamper with what it views as a perfect virtual organization of core and three tiers of peripheral partners (See Carty, 1999 for excellent analysis of this system). In the 3-tier system of subcontracting, the subs take the risks of pricing labor and materials when they sign Nike pre-purchase agreements.  Nike makes quick changes by canceling, transferring, or initiating contracts to meet fashion trends.  Nike is also able to avoid dependency on any host-country (although most of the subcontractors are aligned with some huge producer-conglomerates). 

 

Indeed the frequent "bad news" accounts of Nike sub-factories is easily explained.  The militarism and authoritarianism of Korean and Taiwanese (as well as Chinese) managers is separated from the mild Confucianism beliefs of their workforce. Tales of abuse are no surprise.  Less investigated is way in which Nike negotiates with its subs.  When a sub agrees to a Nike contract, there is no margin provided to the sub to pay for things like health, training, safety, and ecological ideals.   When Nike requires this or that concession about safety or minimum wages from the subs Nike keeps costs paid for the shoes too low for subs to pay for these items.  The sub has little choice but to squeeze the workers for more hours at less pay in order to finance the changes Nike is advertising. Nike is able to advertise itself as a steward of social justice and the environment while not contributing to what subs must pay out to accomplish these realities. 

Nike's expatriate program manages the liaison between Beaverton R&D and Asian factory sites. And it serves as a means of policing subs. But little action has been noted.   

We know less about the networking of the distributors, coaches, players, teams, leagues and universities. Through the 1980s and 1990s Nike moved away from the jogging and workout market ind into the leisure and sports commodification market.  The endorsement machinery of Nike is well publicized.  What is less analyzed is the relation between the images of the celebrity endorsees and Nike's brand image.  Nike is clearly substituting Tiger Woods for Michael Jordan. But whereas Tiger Woods in Nike ads is a black athlete, his roots are 1/4th white as opposed to only 1/8th Black, and is also 1/8th American Indian as well as 1/2 Asian. Further Nike's promotion of "bad boy" sports celebrities is being tempered by the more mild-mannered image of Tiger Woods.   

Nike is postmodern in the sense that it is the salience of signs and symbols of postmodern culture that drive the distribution and consumption of its products. And it is a consumption of images not products that makes it postmodern.  It is post-industrial in terms of being anti-bureaucratic (except for its contracts), highly flexible (in sneakerization brands) and virtual in its centered (Beaverton executive core) and tiers of peripheral manufacturers and distributors of its images.  Nike is postmodern in the cultural significance of commodity drives, cultural symbolism, and life style marketing. As Best and Kellner (1991: 15) describe it, it is a part of the postmodern culture of instant gratification and hedonism. Nike is Baudrillardian as an example of consumer capitalism mixed with postmodern culture that exhibits not only hyperreality but implosion of production and consumption, and the domination of social life by spectacle. Finally, Nike is postmodern in the resistance movements it has crystallized, with a fragmented mix of interests and affinity groups spanning the 1st and 3rd world (See Carty, 1999 for an excellent dissertation on this topic). 

Nike is Out of Time - Being "out of time" in both senses is putting pressure on Nike. Nike is re-narrating itself from Nike goddess of victory (T1), away from Nike "Just Do It" competitor, to "I Can" images of verifiable action.

T1- Mythic Timeless Narrative of Nike goddess (Olympic competitive sports image) T2 - Nike Spin Control Narratives to respond to "Just Do It" hyper-competitive image (success at any costs) T3 - "I Can" and Verifiable Nike Changes in Health, Safety, and Environment Practices 
Time of the festival.

No sports logos or clothes to put them on.

Nike goddess is the mobilization of desire and fantasy

Time is spectacle

Time is linear, the telos of the Nike Index.

Time is by the stop watch.

Work time is metered out to meet quotas

The Yuppie, post-industrial middle class has bought into sneakerization, with a version of Nike to fit every occasion (form running, tennis, basketball, golfing, beach walking to cross-training). 

Time is carnival of protest and hyper consumption 

Time has accelerated into hyper time of NikeTown and Cyber Mall

Consumer goods typify life styles and economic identity.

The postmodern aesthetic (style over substance) is replacing the image of discipline and fitness, or evening winning through sports.

 

 

 

My critical postmodern reading of "Time and Nike" narration is the need to reconnect Nike and Time.  The lag between a Nike "bad news" story and a Nike spin on that story is instantaneous, but so is the activist and media spin of it.  Nike is not a complete break in time, it is more a weakening of time, like a Salvadore Dali clock. 

Nike is in trouble. It has recycled ideals of non-conformity, irreverence and even revolution to build an engine of desire in support of its post-industrial production. But the image is over-exposed, and it is being tainted by "bad news" from the worlds of labor, sports, and university. Nike is a study in postmodern politics, "the emergence of new social movements and the transformed configuration of modern social change" (Carty, 1999: 6). There continues to be a networking of 1st and 3rd world groups to resist Nike's model of global capitalism. This includes resisting sweatshops, sports endorsements, and sole source university contracts (e.g. those with clauses that prohibit university employees from speaking out against Nike or even refusing to wear the logo). It is a networking of affinity groups, protesting everything from over-consumption, unfair ad practices at the Olympics, to sports contracts that re-image a high school student into a Nike celebrity. 

Time Out - It costs more to re-narrate, to spin another deconstruction of the opponents story than it does to make the changes in the labor practices. Each deconstructs the other at a more instant time cycle of event, spin, counter-spin, counter-counter-spin. Each spin barely has time to announce itself before the iterative deconstructions fall into an intertextual web. Spinning counter stories to bad news in accelerated time, gets more and more costly in the post-WTO postmodern climate of interest and affinity group networks of protest. The Nike opposition network is accelerating their spin-cycle time by rallying 1st and 3rd world NGOs and activists to deconstruct whatever Nike says, and Nike is spending $750 million to fight it.  I think this explains why last year Nike began to just make the changes in labor practices. Nike's web site in recent months is changing faster than a baby's diaper. It is becoming cheaper just to do it than to say you are doing it.  It is cheaper just to install OSHA changes, ISO14000 compliance, and micro economic loans for Asian female workers at 450 subcontract factories. 

Nike's narrative of time is being called into answerability in the post-WTO epoch. Believability of Nike's image as a friend of labor, sports, and environment is being called into question. Nike's answers to those question has created a media frenzy, as antagonists and apologists consume air time and print space.  

Nike still fights NGO and activist demands for living wages. Last year Nike spent $750 million in ads and endorsements to erect its narrative image to consumers and investors as a progressive virtual core doing design and marketing while 450 subcontractors did production in highly desirable working conditions.  My estimate is that for $80 million Nike could pay a living wage to half a million Asian workers, who are mostly female between 15 and 22 years old (See What Nike Shoes Cost). Asian workers making Nike products in Vietnam, China and Indonesia make only $1.60, $1.75 and $2.46 per day, respectively (press here). Paying less in endorsements and in 1,000 full time Nike PR employees would easily allow half a million works to move from legal minimum wage to slightly above poverty wage levels. 

Nike in terms of kairos appears to rearticulate (renarrate) its strategic posture at highly opportune moments that are just in time, by apparently retrospectively grasping together its public images in sequentially reinvented labor and ecological practices (Ricoeur's narrative emplotment).  These narrative reinventions have had lasting and persuasive appeal to customers and investors and have led over time to quite recent important and positive changes in corporate practices. My thesis is the kairos of time (the time to adapt a narrative) is being condensed. Nike has taken measured actions that are viewed quite differently in terms of time, cause and effect order, and agency by various nongovernmental organizations (NGOs).  The NGOs in post-WTO epoch are able to mobilize critiques and deconstructions of Nike narratives almost as fast as Nike can create them. To many NGOs Nike's kairos, is not just narrative retrospective sensemaking it is proactive spin control mixed with disinformation campaigns to stretch time as far as possible before making any substantive changes to Asian subcontract factory working conditions, monitoring entanglements and wage increases.  

In brief, Nike is caught up in three interconnected undecidabilities in its every quickening renarrations of time and Nike: double characterization, cause and effect order, and agency indeterminacy (Boje, 1999a).

1. Double characterization of time - This is the conflict between linear and non-linear logics of time. NGO and Nike storytelling is possessed by a "double logic," presenting its plot as a linear sequence of events which is prior to and independent of the other non-linear perspective on the events, and, at the same time, asserting each says they have captured the other in a devious plot structure. In "double logic," for every report of Nike exploitation, there is the distinct possibility that the story of the event is an exaggeration or even a fictitious tale by an activist. And for every Nike press release there is the counter-story of exaggeration of what can or will be accomplished next by Nike.

2. Cause and Effect Order -Nietzsche (1956/1887: 209-210) asked does cause lead to effect? Does effect lead to a search for cause? Or in chains of reinterpretation is cause-effect invented to impose our will on time? When Nike embarks on a new strategy, various storytellers, including Nike, retrospectively ascribe causes.

3. Agency Indeterminacy - If Nike changes its policy, did the activist antics bring this about, or was it the agency of Nike, becoming the caring and ever-enlightened capitalist?

Our three undecidabilities are examples of Derrida’s (1985: 32) "double interpretation," ways that make the separation of subjective story from objective empirical chronology impossible. 

Part 1. Double Characterization of Time - Nike promotes "Nike Index" to legitimate the appropriateness of its overseas practices. The Nike Index contends Nike is the change agent of economic development in the Third World (Nike Web, 1998):

In simplest terms, the Nike Index tracks a developing economy’s economic development by Nike’s activity in each country. Economic development starts when Nike products are starting to be manufactured there (Indonesia, 1989; Vietnam, 1996). The economy hits the second stage – development at a level where per capita income indicates labor flowing from basic industries like footwear and textiles to advanced industries like electronics and cars (Hong Kong, 1985; Korea, 1990); and an economy is fully developed when Nike has developed that country as a major market (Singapore, 1991; Japan, 1984; Korea, 1994).

The Nike Index became the legitimating narrative to charges that Nike was a nomadic MNC, roving the earth for cheap labor and despotic governments that turned the other way when it came to labor and environmental law enforcement. Nike's spin is that it is a catalyst to economic development for first Japan, then Taiwan and S. Korea, and more recently Indonesia, Vietnam, and China.  Nike had produced most of its sneakers in S. Korea and Taiwan since the early 1970s. When wages rise, Nike downsizes, closes most plants, and moves along.

As democratic reform and labor organizing came to S. Korea and Taiwan in the late 1980s Nike move most of its production to Indonesia in 1988. The linear narrative of the Nike Index was called into question with the Asian economic crisis of 1997.  The veracity of the Nike Index narrative came under strong challenge for three reasons. First, many of the Asian nations doing Nike manufacturing were at the center of the collapse.  Second, as Nike down-sized its labor force and moved from Korea and Taiwan to Indonesia, Vietnam, and China --- it is not clear how adding to unemployment benefited the first or second stage economies. Third, Nike has argued since the 1970s that it is not economically feasible to pay Asian sneaker workers above a country's minimum wage. As Dusty Kidd responded to CBS when told Bata, a Canadian shoe company has paid well over the minimum wage since 1990 in Indonesia said "Simple economics tells you that just cannot be true" (Ballinger, 1997: 8, 16).  Phil Knight (1992) continues to argue that Nike pays the "best wages available" (Ballinger, 1997: 13). 

A second example of the double characterization of time is Nike's switch from "Just Do it" to "I Can" time. The famous "Just Do It" slogan is being retired and even the Swoosh icon is being purged from corporate letterhead. The new campaign is "I Can." "Just Do It" is being linked in recent times to hyper-competitiveness, to the bullying sports teams and universities into sole source contracts, to violating the sense of fair sportsmanship in Olympic games advertising, etc.  

Examples of Nike "Just Do It" sports image problems:

"I Can" - The point is that the image-remake from "Just Do it!" to "I Can" is from a sports bully image to a kinder and gentler one.  "I Can" is a different ethos for Nike, one about getting along, and not competing to win at all costs.

However, making an effort to get along is not Nike's style, and runs contrary to the foundational spirit and ethos of Nike Corporation" (Carty, 1999: 61-62). 

If your brand image is associated with unfair labor practices and sports bullying you stand to lose a lot more than you might gain. It is costly for Nike to reconstruct such an image to keep its lucrative university sole source provider and endorsement contracts. The Winged goddess of Victory was crafted by the Greeks for particular reasons, and was re-imagined by Nike Corporation in the 1970s and again in the year 2000. Nike fought with the god, Zeus, in her battle against the Titans, and in Greek art she is sometimes represented as winged and carrying a wreath or palm of victory. But what is the meaning of victory?

Some have said that Victory is the fine result which is achieved in accordance with the aim pursued. So, for example, crushing the enemy is Victory for the general, obtaining good and abundant food from the land is Victory for the farmer, and reestablishing a patient to health is Victory for the physician. Similarly, whoever has a chief aim will, as the general, the farmer and the physician, attempt to achieve the finest result, and this one he will call Victory, considering it the sweetest thing of all. And Victory being so irresistible sweet, everybody wants her to stay, and that is why the wingless Nike was conceived, so that she never would fly away.

However, the glory of Victory has been related to the value of the aim pursued. So if the aim of the general were to betray his own army and lead it to destruction, and that of the farmer to starve the community by demanding arbitrary prices, and that of the physician to poison his patient, although by achieving their aims they would still be obtaining victories, these would, at the same time, be respectively called treason, greed and murder, in which no glory is to be found. And that is why it may be said that no lasting pleasure arises by gaining Victory for such things, for treason provokes hate, greed causes contempt and enmity, murder calls for revenge, and all of them give birth to fear and suspicion, which become the wreath of those victories. So, what is called the prize of Victory has been thought to be paramount, Victory itself tasting differently depending on what has been defeated, either good or bad things (press here).

In sum, the double characterization of time comes from the collapse of post-industrial capitalism and postmodern consumer culture.  Activists and NGOs are asking this collapse of time be unraveled. As Jameson theorizes, this movements seeks to note the continuity of postmodern capitalism to more Victorian capitalism, as well as to note the discontinuities (i.e. the emergence of new aesthetic tastes). In a media-saturated global economy, separating out labor conditions from consumption patterns (i.e. labeling where goods are made and the conditions of their work) is a difficult challenge. 

Part II. Cause & Effect Order - Nike's counter moves allow us to study the "undecidability" of cause and effect. Nike puts the effects of "bad press" onto the shoddy methodology of its critics, diverting public attention from the causes. For example, when Charles Kernaghan asserted that Nike, Wal-mart and other MNCs were using sweatshop labor practices in China and violating the human rights of workers, Nike immediately attacked his findings as "biased" and "said its suppliers' factories pay fairly and are 'the best in China'" (press here for MNBC News May 9, 2000).  It is not new for Nike to attack the credibility of the messenger. For example, to continue this example, Nike posted the following on its web site in 1997. In addition the Nike web site (1997c) is critical of Global Exchange.

If Nike were to rely on methodology used by our critics -- most recently, Global Exchange and its release of a report on factories in China -- we would be rightly crucified by the public for shoddy research and an inappropriate sampling technique. Setting up a card table outside a factory gate, asking leading questions, and then issuing a "report" on Nike factories -- without any conversation with Nike or its factory management, never mind requesting a factory visit -- is not research. It is campaigning under the guise of research. The China report is the best example extant of how not to do independent monitoring, and a perfect illustration of why Nike chooses a responsible third party (in China, that party is Price Waterhouse) to look at factories in depth and with some precision.

Another Example of cause & effect order - "Because the goddess, Nike was victorious, the company is suggesting that people who buy their tennis shoes will fly faster on the track and court and will be winners too. Notice how their logo resembles the wing on the statue of Nike" (press here). 

Nike weakens time by re-narrating cause and effect, by spinning a narrative of consumption that masks inquiry into the material conditions of production.  Nike is gatekeeper between postmodern culture and post-industrial realities of work. This is also related to the third double logic, who has agency in all this?

Part III. Agency Indeterminacy "We're just buyers; we don't control what goes on in the factories" was the Nike response till 1992(See Ballinger, 1997: 10-12). The reaction of Nike to NGO and media commentary on Nike's subcontractor labor practices in the 1970s and 1980 was one of agency-denial.  "We don't make the shoes." Or as Neal Laurldsen, Nike VP for Asia put it "We don't know the first thing about manufacturing. We are marketers and designers" (Clifford, 1992; Press for Change, 1995). In short, Nike claims that it is not the responsible agent for any labor problems. NGOs in the early 90s pushed Nike to take more responsibility for agency by stressing that Nike set the terms of the contracts.  When Nike demands that contractors implement wage, health or safety changes, the subcontractors respond by raising daily production quotas, forcing workers to speed-up and to stay overtime without pay (its voluntary time) to complete quotas or forfeit via fines either a half or full day's pay. This practice stretches time by stretching the workday for no increase in wage (See Karl Marx Das Kapital, Chapter 10, The Working Day for similar ways of stretching work time).  

The U.S. Congress reacting to Indonesian press stories of human rights violations (appearing since 1989 in the press) issued a 1992 Human Rights Reports to the U.S. Congress charging the sneaker industry was "the pernicious influence" was "out-of-control".  Nike's response was to draft a Code of Conduct (and Memorandum of Understanding) for its subcontractors.  This was a revision of the agency indeterminacy narrative. But through 1996, Nike did not claim any agency accountability beyond "having" a written code for subs to follow.

In 1996, denial of agency was still the official storyline. Dave Taylor, Nike's VP of production, said, for example, "We don't pay anybody at the factories and we don't set policy within the factories, it is their business to run" (Press For Change, 1996). 

NGOs kept up the campaign to move agency accountability from having written codes to enforcement of the code. This redefinition of agency was actively resisted. Donna Gibbs, Nike's director of corporate communication in response to an Amnesty International query said "They're basically asking us to get involved in an arena that is not our place to get involved. We're not political activists. We're a footwear manufacturer" (Press for Change, 1996).  Carty, 1999: 317) points out the relationship between Time and Nike narratives: 

Though Nike has used this line of reasoning to dodge responsibility, dismissing problems as being created by subcontractors, MNCs [Multinational Corporations] like Nike do, at least indirectly, control the conditions in their subcontractors' factories. As argued by labor activists, to stay in business, a subcontractor must accept the timeline set by the MNC and accept the price the MNC is willing to pay per shoe, and when the MNCs squeeze the subcontractors, the subcontractors squeeze the workers (Campaign for Labor Rights, 1997).

Another example, at Nike’s September 22, 1997 stockholders meeting, Philip Knight (1997) adds to the indeterminacy, as he recognizes one NGO, "Global Exchange" by name in his speech to shareholders:

But there are certain extremist organizations that we simply cannot have reasonable dialogue with, and one of those extremist organizations is Global Exchange which had a press conference today where they announced that they were issuing some report. I would suggest to you the timing is not a coincidence and it’s not really a report—what it really is is a publicity stunt.

These strategies served for another year to counter demands by shareholders and NGOs to implement independent monitoring, including NGO monitoring of Nike overseas factories. But, shortly after the 1997 stockholder meeting, a major Ernst and Young audit report of labor and environment practices in a Vietnam factory making Nike shoes became front-page news. The undecidability questions took on agency, consensual agreement on causality, and the double logics no longer held much popular appeal. In response, Nike and CEO Phil Knight has begun to implement, what are by this time, documented changes in some of its labor and environmental practices.

Postmodern Nike Time - Nike Time is a strange set of fragments, combing ancient Greek goddess mythic time, with the pre-Taylorized piece rate time and motion of Asian sneaker production and postmodern identity consumption of floating sign systems. The goddess Nike is bought and sold in the postmodern culture marketplace while the time of piece work is unnoticed by consumers. The Nike sneaker is postmodern simulation, where consumers do not distinguish between Greek winged goddess and the copy "Swoosh goddess."  The Swoosh is a copy for which no original ever existed (Jameson, 1984: 66). The Swoosh is a copy of a copy.  The spectacle of sports competition is stitched onto sneakers by Asian females working in factory conditions that Karl Marx critiqued in 1867. As Nike applied its competitive values in university contracts, the sportsmanship and fair play of Nike came into play.  Now confronted with a bully sports and a bull labor dual image, Nike is retiring the Swoosh in favor of "I Can."  

With Nike's winged goddess of victory there is a loss of historicity with Greek past and with the Olympic games of Ancient Greece. There is some strangeness in time passing from Greek Olympics sports to Nike's corporate world of sports.  The blurring of historical time by Nike allows it to push a narrative that purports to be timeless while continuing to edit the images to fit the culture of postmodern consumption and the workplace of post-industrial capitalism. 

Nike, I think, does not want customers to distinguish or contrast past, present, and future time. Consumers in NikeTown consumption cathedrals are in a space that refuses historicity.  It is a Disney theme park for sports consumers.  Techno futurist shoe construction is combined with images of the winged goddess and modern images of global capitalism (Nike the virtual organization with a core of loyal employees and a a periphery of Asian workers). Images float in NikeTown in displays, banners, portraits of the sports icons, and in video loops. Like the casino, there is no sense of the passage of time.  NikeTown is postmodern architecture, a time and place where consumers can not get their bearings.  Is this a museum to sports, a mall shop, or a place to shoot hoops?  It is the ultimate hyperspace of postmodern consumption. 

Nike has moved to the 24/7 time of the cyber mall, where Nike is narrated day and night.  It is simulated shopping, outside any "real" time.  

Nike in NikeTown and in Cyber Mall is fragmented moments of time, just a succession of present moments, quick as laps on a stop watch. 

Nike escapes time.  It escapes the groups of NGOs and activists using the Internet and street theater to protest sweatshops. Nike is the poster child of globalization, representing to these activists all the inherent evils of global capitalism and postmodern image consumption. Nike is the symbol of the way time is organized in global capitalism.  Nike is the virtual organization. Nike-Time is no longed connected to work-time or to natured time.  It is the NGOs and activists that keep bringing up the differences in Asian work time and consumer time. 

And in the planetary reach of the world wide web, activist networks are globalizing at nearly the corporate order they oppose (L.A. Kauffman, July/August, 2000 Utne Reader: p. 14).

For Nike time has accelerated. No long the goddess time of Athens, not something tied to seasons, the movement of planets, or to cycles of day and night. 

Paul Ricoeur's theory of Narrative and Time integrated Augstine's theory of time and Aristotle's theory of narrative.  But, this integration did not anticipate the schizophrenic and fragmented conditions of Time and Nike.  In the one sphere there is the efficiency and stability of time in post-industrial production and in the other the implosion and hyperreality of time in postmodern culture. And in between them is Nike. Nike narrative weakens time in ways that stand outside Ricoeur's theory. Nike weakens the telos of time (e.g. Nike Index) but is not able to break free of time due to the resistance of networks of NGOs and activists bridging 1st and 3rd world. Across that bridging flows images Nike would prefer consumers and investors did not see. The images juxtapose predatory capitalism time with hedonistic postmodern culture in unflattering ways. 

Here and there Nike dissolves time. Nike is able to manipulate fleeting postmodern cultural aesthetics and has managed to overload cyber and billboard space with images that float. Nike is the culltural organ of symbolic capital accumulation. Many of its images are full of irreverence, dissent, and rebellion against discrimination and exploitation of women and minorities. Nike dominates the marketplace of cultural forms, erecting identities as fast as life styles proliferate. But the irony of paying big bucks for status symbols of the middle class is wearing thin. As is the irony of promoting progressive values of women and minorities in its advertising, while refusing to be answerable to the contradictions of its overseas labor practices.  Finally, the crisis of over-saturation of the Swoosh brand has introduced new "anti-Nike" forms of desire as well as competition for that desire. 

In the end we can say that Nike compresses time, saturating popular culture with Swoosh images and various slogans.  In the accelerated arena of sneakerization fashion, the sign systems for each market segment are not able to cover the feet of global post-industrial capitalism. An irony really, because what is so post-industrial about quotas and piece work in sweatshop conditions? 

Nike's inter-firm networks of producers and distributors is key to its continued corporate success.  But even more key is the ability of Nike to re-narrate just in time to avoid having its image inscribed by resistance to the global capitalism it has come to symbolize. After all, Nike does mobilize a culture industry to encourage consumption of a form of industrial capitalism that many consumers prefer not to imagine. 

Nike and its Critics - Nike must convince faculty, students, and administrators that its 611subcontractors (as of today) either are no longer or were never, except in rare exception cases, sweatshops.  At issue is WRC's claim that FLA only monitors model factories (See Exhibit A), while keeping secret the majority of factories that meet it's test for being a sweatshop  (See Exhibit C). The main issues are captured succinctly in two myth versus reality assertions by Associated Students Against Sweatshops chapter at University of Michigan:

·        Myth #1: Global economy benefits workers and local economies in poor countries by providing jobs.

·        Reality #1: While companies do provide jobs to workers in poor countries, these jobs typically do not offer a living wage or pension benefits.

·        Myth #2: Given enough time the global economy will lead to prosperity and economic equality between countries.

·        Reality #2: In actuality, the global economy is not a new phenomenon. The world has been linked in a global economy – through colonization and trade – involving slaves, precious metals, and simple manufacturers since the fifteenth century. The legacy of earlier manifestations of the global economy is extreme economic inequalities between nations. There is nothing "natural" about poverty on a global scale; it is the product of hundreds of years of colonial development and globalization (United Students Against Sweatshops USAS University of Michigan). 

T he campus protests and NGO boycotts at Niketown and in the street theater of Seattle and WTO, have raised consumer consciousness about the embedded connection between consumer purchases and material conditions of workers in the new global economy. I’m connected to workers all around the global economy because of the clothes I choose to wear.  Many of us refuse to wear clothing and especially sneakers made by semi-slave labor in what most NGOs term sweatshops. To know if they are or are not made in sweatshops, consumers have to dig through landfills of rhetoric, some of which is factual and much of it mythical. Some is Nike rhetoric some is that of the activists. But here and there there is ample documentation of the material conditions of labor to raise doubts about claims.

Today our task is to look at Time and Narrative, the new "I Can" Nike.   

We are only beginning to separate Nike’s mythic rhetoric machine from the realities of their 608 subcontract factories around the world (116 in the U.S.). The controversy is getting heated as we saw in WTO and in the campus protests. Critics argue that  the corporate foxes, the FLA, Global Alliance, and Nike’s labor practices department are left guarding the Asian hen houses. Nike, on the other hand, argues that there is a campaign of disinformation: media bad reporting, NGO invalid methodology, and organized labor initiatives to regain jobs that are permanently lost to global economy.  Nike contends that students and Seattle protestors are right to be angry because any sane citizen would be angry if they only read the propaganda and disinformation that gets selectively reported in the press and even by some of us academics.

The focus of this session is how Nike officials, in this case Ms. Amanda Tucker, of Nike's Labor Practices Department use rhetoric and narrative JUST IN TIME to rebuff critics Just In Time. And it is also to hold open the possibility that Nike is Justice, JUST IN TIME to make meaningful changes in the lives of 600,000 workers in 608 subcontracting factories. 

Since our focus is on Time and Narrative, I want to look at how the most recent Nike narratives storyline claim that it is not a sweatshop and that it is taking Justice steps Just In Time to monitor and control its 608 subcontractors, only a handful of  whom happen to stray from the Code of Conduct. 

What is interesting about Tucker is her use of personal experience narratives and rhetoric to shoot down Nike's critics. Tucker narrates with compassion and sincerity.  Her self-experience narratives do not mouth Nike propaganda, they are eye witness testimonies to say that "Just" means "Justice" and corporate integrity. She will tell us her story that Nike does not talk Justice, it is just doing it in its new I Can style.

As I watched a video of her March 17, 2000 IABS meeting performance, I was impressed by her compassionate rhetoric.  The tactics I saw, were to open with a Tiger Woods video edited to make the golfing legend look like a duffer. This video was used to argue that all that Tucker had heard about Nike factories by NGO studies and the misinforming media was a gross misinformation campaign.  She just did not see anything like what she had heard before joining the Nike family.  She recounted several personal experience narratives to give her own eyewitness accounts that stood as sincere and creditable evidence. 

When personal experience narratives of living in the dorms with the women in the Nike factories in China, and the Tiger Woods film demo were not enough to counter NGO claims, her debating tactic turned on critiquing the methodology of the opponent, calling it "laughable" by social science standards. Something her Stanford University training would never permit her to do.  Only rarely did she resort to shooting the messenger.  She did shred the NGO authors of various reports by pointing out they had their own axes to grind and were just not reporting the "reality" she experienced since becoming a Nike employee.

In all Amanda Tucker successfully convinces an Academy of Management audience that media interviews and NGO study reports gloss over too much Nike reality, editing it like the Tiger Woods putting film to make a great corporation look like a duffer. She and the Labor Practices Department are the new Nike Team, dedicated to providing a foundation for workers that makes the existence of sweatshops just impossible.

And here is the good news, Nike has employees like Amanda Tucker who are reinventing Nike to be an agent of economic development and opportunity for 600,000 workers. And at the same time the struggle between FLA and WRC is a hyper-competition to see who can provide more effective monitoring of what Amanda Tucker seeks for Nike.  

The second JUST IN TIME meaning and identity is fragmenting and dissolving as Nike becomes Justice, JUST IN TIME.  Nike is transforming from the second to the first meaning in an accelerated time warp.  This is not to say that Nike has not been exceedingly slow, delaying every capitulation to its new Justice Identity, especially from Phil Knight's 1962 term paper until the 1998 speech to the National Press Club. The good news here is Nike is becoming the greatest MNC in the global economy, combining two meanings of time, changing just in time, and being just in time with justice.  

Amanda Tucker's remarks to the Academy of Management will demonstrate (if history is a guide) that while cynicism about Nike persists in the court of public opinion, the reality is Nike is ending sweatshops in our time. Nike is JUST IN TIME, not able to afford to have its image slip in the court of public opinion, and having no choice left but to respond given the escalation of the populace movement of post-WTO, WRC, and a flock of internet activists to end sweatshops in the global economy in our time. 

I am learning to tone down my rhetoric about Nike.  I am upbeat, I think that in time, Nike self-monitoring, Alliance monitoring, and the WRC monitoring will intersect to raise the bar one more time, so that there will be a living wage for all 600,000 Nike workers.  The triumph of American global capitalism does not mean forgetting the living wages of the workers. And Nike has an opportunity to take advantage of this turning point in sweatshop history, to change working conditions and wages JUST IN TIME. 

 

In the following Table, I give some background and documentation to my remarks. I contrast  numerous NGO reports with remarks of Amanda Tucker (e.g. March 17, 2000 video transcript of International Association of Business & Society (IABS meeting in Burlington, Vermont). Tucker is a Nike official of the Labor Practices Department, who frequently addresses academic audiences. Tucker is introduced to the IABS audience by session chair Richard Wokutch:

" NOTE: item eliminated in compliance with request by  "Richard E. Wokutch" wokutch@vt.edu to not list any excerpt or portion of this IABS conference tape. ."

Table One: Contrast of Nike Official Statements at IABS Meeting on March 17, 2000 to NGO reports (See Exhibit B for reports) 

Note: Please refer to Exhibit A for list of subs Nike is not disclosing in its FLA monitoring and Nike website reports. Nike, according to critics such as WRC, invents tour inspections of some factories but not of others. See Exhibit B for a list of NGO studies and reports that were public knowledge at the time of the March 17, 2000 presentation (and some that have appeared between March and August, 2000).  And Exhibit C for more on commentary and resources on sweatshops. 

In this opening segment, Tucker uses the Tiger Woods video to claim this is just how NGOs do it. They can edit reality to say anything they want and thereby misinform campus groups and consumers. I supplement her claim with Fair Labor Association's Sam Brown's recent comments.

 

EVIDENCE OF ENDING LABOR ABUSES IN NIKE CONTRACT FACTORIES:

 

 NOTE: At the IABS conference, Tucker showed a video of Tiger Woods missing seemingly easy putts, which got a few chuckles from the academic audience. Amanda Tucker, had this to say:

 

 

Tucker – NOTE: Tucker response eliminated in compliance with request by  "Richard E. Wokutch" wokutch@vt.edu to not list any excerpt or portion of this IABS conference tape. 

 

EVIDENCE OF ONGOING LABOR ABUSES IN NIKE CONTRACT FACTORIES:

 

·        Tucker and Nike claim that university groups are misinformed by persistent misinformation. In another example, FLA Executive Director Sam Brown argues that “mood on the campus is a particular mood, that mood is driven by consistent and persistent misinformation and mischaracterization.. The mood on the campus is, in part, driven by what information people have. If what they have is persistent misinformation.” And “Nobody knows what a living wage is”… “So, we’re dealing with a moving target and a set of misinformation, which makes it—of course the campus attitude is bad, I’d be angry too. If what people were saying about it was true, I’d be furious, I’d be pissed, I’d be out in the street. That’s not, it’s simply not true. They’re not dealing with the truth about what’s going on and that’s that…” Jeff Ballinger of Press For Change response “I just don’t think, you know, you can’t point a finger at the students on the issue of misinformation and leave your partners in the business community untouched” (press here for full transcript).

  •       As a rhetoric strategy both Tucker and Brown are reversing figure and ground.  They are accusing NGOs of editing and selective reporting to make their case. Nike is reversing a critique that is made by most NGO critics. 

(See Exhibit B for the reports that are being deconstructed by Nike). 

 

 


Nike Factory in China

Sewon factory. Nike contractor in Northern China

In this next segment, Tucker uses a personal experience narrative as testimony that what she has been hearing about Nike form the NGOs is not at all what she is seeing since going to work for Nike this past year. I contrast this with a narrative by Julia Esmeralda Pleites, a former-Nike worker in El Salvador and with several NGO reports from China.


Tucker – 

NOTE: Tucker response eliminated in compliance with request by  "Richard E. Wokutch" wokutch@vt.edu to not list any excerpt or portion of this IABS conference tape. 

 

·        CHINA - About 50 Nike footwear and apparel factories in China employ over 111,000 workers. ---Reports based on interviews with Nike workers in China reveal inhumane working hours including 12-hour days and 7-day weeks, low wages, illegal deductions, and use of the notorious dormitory system … Within the notorious dormitory system that warehouses  young migrant women for factory labor, companies restrict basic freedoms such as marital relations, social life, the right to leave company grounds, and the right to quit one's job. (press here for Unite report).

·        CHINA – violations of Chinese Labor laws (The legal limit for work hours is a 40 hour week plus overtime that must average less than 9 hours (36 hours/ month). And Nike's code of conduct is supposed to limit the workweek to 60 hours.)  - Workers report that they are required to work 12 ½ hour days and seven day work-weeks, with one day off per month at one Nike contractor (Hung Wah/Hung Yip garment factory). At another factory (Wei Li Textile) some workers report working 12 hour days and have only one day off every 12 working days. At the Tong ji factory, workers report that they typically work 50 - 90 overtime hours per month. A worker at the Qingdau Sewon Shoes Company told the HKCIC that she must work overtime everyday, sometimes until 2:00 - 3:00 a.m. … Nike claimed in its 1998 China fact sheet that workers in China average about RMB 600 per month. The Department of Labor wage survey reports that the average female apparel worker in China earns about RMB 650. (press here for report)

·        CHINA – WAGE CHEATING SCHEMES (Chinese law prohibits disciplinary fines.)- There is a penalty for being fired — half a month's wages are deducted. At Wei Li Textile, workers have to pay a fee for a temporary residence pass. Workers also pay fines for disciplinary purposes. Rules include turning lights out in the dormitory after 11 p.m. For example, Wei Li Textile obligates workers to pay an amount equivalent to several day's wages in exchange for a required "Temporary Residence" pass. Workers as the Tong ji factory report that the company has fined workers as much as one half of a worker's approximate average monthly wage in retribution for a production mistakes. At the Keng Tau Handbag company, which makes Nike backpacks and sport bags, one interviewee reported that she was fined and given a warning letter by management when she exercised her right to refuse to work overtime…. (press here for report).

·        COVER UP – Workers say they are trained how to Deal with the foreign monitors who come into the factory. They are told not to punch in on Sundays so that Sunday work will not show up in the factory's records. And they say that management keeps two sets of books — one recording higher wages than they actually get. (press here for report).

See Exhibit C - for list of factories Nike does not report in its monitoring. 

·        EL SALVADOR –My name is Julia Esmeralda Pleites.  I am from El Salvador.  I worked in the Formosa Textiles factory in the San Bartolo free trade Zone… In the factory, we made Nike, Adidas and a USA soccer shirt--but I never saw that label.  I was a sewing operator and my job was to sew both seams on 160 shirts every 2 hours.  On this Nike shirt, I worked attaching the lining to the collar front… You need permission to drink water and to go to the bathroom.  You need a badge, and there are police who check the badge at the bathroom and the drinking faucet.  There are five private police guards in the factory.  Almost never can you use the bathroom more than twice a day, usually only once.  The police and even the Chief of Personnel scream at you to go faster.  Sometimes the Chief of Personnel, Mr. Castillo, even goes into the women's bathroom, screaming at us to get us out quickly.  There is no toilet paper and the bathrooms are very dirty.  The drinking water is not purified.  It comes from a cistern.  On Friday, October 9, I was fired.  I missed work that Tuesday since I had no money-not a cent for the bus to work or for food.  My daughter didn't feel well.  So I decided to stay home.  When I went to work the next day, they suspended me without pay and sent me home.  On Thursday, they would not let me work either, and just yelled at me.  The chief of production, Charcal from Bangladesh grabbed me by the shoulders, shook me violently, pushed me and hit me hard in the thigh with his knee.  I was afraid and I began to cry.  He shoved me again and tried to trip me.  As I ran away, he cursed at me.  They fired me on Friday.   (Press here for transcript).


When confronted with undeniable sweatshop conditions in Nike factories, the response is to point out that "all factories have problems" but Nike has no more problems than any other factory. I contrast this with the reports of Nike (and Adidas and Jansport) for poverty wages, made smaller by pernicious deductions) and the growing campus protest movement over Nike claims that any reports of abuse are exceptoins to the rule.

Tucker - 

NOTE: Tucker response eliminated in compliance with request by  "Richard E. Wokutch" wokutch@vt.edu to not list any excerpt or portion of this IABS conference tape. 

 

 

·        Nike, Adidas and Jansport Backpacks are produced at: Keng Tau Handbag Company Keng Tau Industrial Zone, Panyu Village, Guangdong Province, China – Workers are instructed not to punch their time cards for evening or Sunday work.  So any company records shown to Nike, Adidas or Jansport are fabrications, seriously underreporting the actual number of hours worked… Ninety-eight rmb a month, or $11.81 U.S. (which for low wage workers comes to one week’s wages) is deducted by the factory from the workers’ wages each month in return for dorm accommodations and food.  Workers are housed 16 to a crowded room and fed two poor quality meals a day.  The workers must take care of and pay for their own breakfasts… Upon entering the Keng Tau factories the workers are illegally charged a 60 rmb job deposit and their first month’s wages are withheld by the company.  This is done to prevent the workers from looking for better or higher paying jobs, for if they leave before their first year is out, they forfeit both their wages and deposit.

·        Nike Press Release (May 10, 2000) about problems with the back pack company and the Sewon factory (press here).

·        University Protests- Forty four campuses have agreed to join the Workers' Rights Consortium (the students' preferred monitoring body) and Nike is not happy (press here).

·        In the US a growing student anti-sweatshop movement is putting pressure on Nike and other companies to publicly release the addresses of factories producing clothes bearing university logos … Nike only released the addresses of three factories in China, all owned by the same company (WDI). In November 1999 staff of the Hong Kong Christian Industrial Committee (HKCIC) interviewed workers from those factories as well as workers from another factory, the Hung Wah garment factory, which also produces for Nike in China. The results of the research have been published in the February 2000 issue of HKCIC's newsletter, CHANGE. SEE EXHIBIT ONE BELOW (press here).

·        See report on 8cents a worker gets for a Nike or university cap (press here) and what student groups at major U.S. universities are demanding be done about it.

 


 Nike claims that its sophisticated systems of internal audits supervised by the Nike Labor Practices Department is effective in monitoring and controlling healthy and safety issues as well as wage and overtime violations of local laws (and Nike's code of conduct). I contrast this with an example of an ad for Nike workers in China that violates Nike's code, reports of lack of contact with workers in El Salvador with either the code or Labor Practices, pay for pregnancy tests or be fired reports, problems with the methodology Nike uses to engage in its monitoring of workplace conditions.

Tucker - NOTE: Tucker response eliminated in compliance with request by  "Richard E. Wokutch" wokutch@vt.edu to not list any excerpt or portion of this IABS conference tape. 

 

·        China – (Nike's Code of Conduct states that the Company will not countenance discrimination in hiring based on gender, marital status, or age, among other worker characteristics.) -- Nike Contractor Wei Li Textile Factory Recruitment Ad says “Because of production needs, we are looking for experienced workers in the computerized stitching and sewing sections. Requirements:  Gender:        Female only --- Age:                 17 – 21 … Documents:   Identity card, education certificate, single certificate (press here for full ad).

·        El Salvador – No attempt is ever made to speak with the workers in a safe location where they are with local respected religious and human rights organizations they can trust and confide in.  This is why monitoring by the big accounting firms, or other for-profit groups like them, is totally ineffective in creating the legal space so these workers can learn their rights and empower themselves (Press here for report).

·        Workers Pay for 2 Pregnancy Tests At Nike Contractor’s Plant  (And if the test is positive, they are fired immediately.)  (press here for report).

·        What is this System of Monitoring? – Look at what students on Nike tours with its monitors say “The students reported that Nike's monitors ask workers whether their wage is enough to meet their minimum needs but their answers are not even reported to Nike. They also found that generally workers were "not aware of their union rights or their Freedom of Association rights" and that the questions Nike's monitors ask about these rights are phrased in language which workers cannot understand… Many of the students pointed out the limitations of warning factories in advance of monitoring visits and of interviewing workers inside the factory where they cannot be sure of confidentiality.” (press here) or (press here for Nike transcript of student visits).


 After the release of the Ernst & Young audit report in 1997, Nike began to take working conditions in Vietnam more seriously, but ends up attributing the cause to "cultural factors." I contrast this with reports by Ms Hong and Ms Chi that they were fired for taling to ESPN interviewers.

Tucker - NOTE: Tucker response eliminated in compliance with request by  "Richard E. Wokutch" wokutch@vt.edu to not list any excerpt or portion of this IABS conference tape. 

 

·        VIETNAM – See reports by Vietnam Labor Watch, CBS Roberta Baskins, and ESPN documentary during the Olympic games.

·        VIETNAM - The workers fired from the Sam Yang factory in Vietnam for telling journalists about violence against workers in their factory  Lap Nguyen has given detailed testimony on video to Vietnam Labor Watch. She says that during her first two years she was recognized by the factory for the quality of her work performance but that following the ESPN interview her work was deliberately undermined and she was systematically humiliated in front of other workers before being forced to resign.    Mr. Kidd's letter rejects this. Is Nike suggesting that Lap has fabricated her story and that it is a complete coincidence that her dismissal followed shortly after she told US reporters about violence against workers in her factory? What "work performance issues" was she supposedly guilty of? On the basis of what evidence has Nike concluded that her version of events is untrustworthy? If you would have us believe that her dismissal was appropriate then you will need to provide more evidence than the result (but not the content) of a confidential investigation conducted by Nike itself.     Regarding the cases of Ms Hong and Ms Chi, both told Vietnam Labor Watch that they had been fired because of their willingness to talk to ESPN journalists the year before. We have no reason to believe that they made up this story. Nonetheless, Mr. Kidd claims that they resigned voluntarily. Given that they want to continue working for Sam Yang, and that according to Nike's version of events the factory has no problem with them continuing to work there, what barriers are there to them being reinstated? A worker at a Reebok factory was also sacked for talking to ESPN and when Reebok was contacted about this they immediately found that worker another job. Why is Nike not prepared to do the same? (press here for report)


 In response to challenges that workers need to be able to organize worker-unions, Nike uses the Global Alliance for Workers and Communities to take a development approach to workers feedback, lookingt at health and nutrition and community aspirations but not at wages. I point out that Nike has teamed up with the Gap and Mattell to utilize social researchers who have no trust with or background in the countries they are doing worker focus groups.

Tucker - NOTE: Tucker response eliminated in compliance with request by  "Richard E. Wokutch" wokutch@vt.edu to not list any excerpt or portion of this IABS conference tape. 

 

·        In addition to the International Youth Foundation, members of the Alliance include the World Bank, Nike, Inc., Gap Inc., and St. John's University. The Alliance received a grant for its initial work from the John D. and Catherine T. MacArthur Foundation. The World Bank is the largest provider of development assistance, committing about $20 billion in new loans each year.

·        It is hard for us not to be cynical about this new initiative. Community Aid Abroad and other organizations involved in this campaign have been calling for many years for Nike to allow local organizations with expertise in labour rights to monitor factory conditions. In response Nike has teamed up with Mattel (another company with a history of ordering from sweatshops),the World Bank (an international institution with a very poor history in the development field) and the International Youth Foundation (which in so far as we are aware has no organisational  history of involvement in labour rights at all) to form this Global Alliance... The Global Alliance provides Nike with the public relations credibility of "monitoring" without having to ensure that any particular labour standards are met. The Global Alliance seems to apply an individualistic "welfare" model to the problem of exploitation in Nike's suppliers' factories. It seems that social researchers will meet with individual workers to discuss their concerns and aspirations and then help put in place strategies to implement them. This ignores the structural reality on the ground in most of these factories - that workers are afraid that if they tell anyone about problems in their factory they will instantly lose their jobs.  (press here for CAA report)

·        Phil Knight’s speech to UN about Global Alliance for Workers and Communities (press here).


 

University of Oregon student protesting failure to join WRC AP.

"It started with a very narrow focus - our logo, our campuses," says Eric Brakken , a 1999 graduate in sociology from the University of Wisconsin-Madison who now coordinates USAS efforts out of a cramped Washington office. Now, he says, "there's a growing commitment to combating multinational power and the role universities play in that. There's a feeling like we're in this together."

“Whereas the Vietnam War and the civil rights movement fueled activism in the 1960s, the global economy is stirring up protests now, as evidenced by the commotion in Seattle last December over a meeting of the World Trade Organization and by the sweatshop protests at Madison and other college campuses” (Journal Sentinel Feb. 22, 2000).

Nike pushes the Fair Labor Association (FLA) as an alternative to the Workers' Rights Consortium (WRC) to monitor its code of conduct. I point out that the student-initiated monitoring association is gaining ground in signing up universities to utilize it as an alternative to the corporate financed and corporate run (50% of the board is corporate). The FLA monitoring sweatshops is a case of the fox guarding the hen houses. I contend that Nike uses bully tactics to punish universities (i.e. Brown and Oregon are to examples) that sign with WRC.

Tucker - NOTE: Tucker response eliminated in compliance with request by  "Richard E. Wokutch" wokutch@vt.edu to not list any excerpt or portion of this IABS conference tape. 

 

(Press here for The Fair Labor Association Code of Conduct and Principles of Monitoring). List of Universities affiliated with FLA (press here). 

·        WRC (Worker’s Right Consortium) SOURCE DOCUMENT - The United Students Against Sweatshops "Workers' Rights Consortium" Proposal to universities (Press here for pdf file). Similar document (press here). 

·        SOURCE DOCUMENT – See transcript of -- A University Senate External Relations Committee  Open Forum with Representatives from the Fair Labor Association (FLA) and Workers Rights Consortium (WRC) March 3, 2000 (press here).

·        History of the Sweat-Free Campus Campaign Movement (press here). Article on history from AP (press here).

·        WRC  – claims that the Fair Labor Association, which is too heavily influenced by apparel makers. OR, just a ``corporate cover-up charade” The student's alternative requires a living wage, public disclosure of factory locations and visits by independent human rights groups to check factory conditions. (Reuters, 1999). WRC in USAS campaigns is organizing on 150 campuses.

·        Penn students occupied the president's office for five hours to demand that the university join the WRC (press here).

·        Brown University, for example, will be holding a "sweatshop fashion show," with students modeling Brown t-shirts and sweatshirts while an announcer describes the sweatshop conditions under which they were produced (press here). Nike uses Bullying Tactics at Brown University (press here).

·        Nike last week dropped its hockey contract with Brown University, saying the Providence school reneged on the deal when it signed on with the student initiative (press here).

·        Security officials at the University of Toronto tried to sabotage a sit-in by blaring AC/DC songs over loudspeakers. (They switched to the Backstreet Boys and Spice Girls because some students like AC/DC (press here).

·        Princeton University signed with both FLA and WRC to pressure corporate-backed FLA to adopt tougher standards (press here).

·        Six Purdue University students completed their 10th day of a hunger strike Thursday, protesting sweatshop conditions. A dozen students were arrested at a sit-in at the University of Kentucky administration building this week. At Tulane University, dozens of students have occupied the administration building for a week, seeking better treatment of overseas workers who make Tulane merchandise (press here).

·        Last week the giant University of California system announced that it would adopt a code of conduct that includes full disclosure, living wage, and a provision prohibiting "harassment, intimidation or retaliation" in union organizing campaigns. The code will cover about $15 million worth of University of California yearly apparel sales at all ten UC campuses (press here).

·        University of Colorado’s faculty assembly approved a resolution Thursday in support of a new code of conduct for ethical apparel licensing, and demanded that the university join an organization such as the Worker Rights Consortium.  (press here)

·        AT ISSUE:  “…each [FLA] business to be monitored was announced in advance … [therefore WRC argues] you have be an indigenous NGO who knows the area, who knows the conditions, but most important, who has the trust of the workers.” (press here).

·        AT ISSUE: Should universities give their seal of approval to FLA, when it is a corporate internal monitoring device rather than one that includes NGOs who are on the ground with the trust and confidence of workers (press here).

·        AT ISSUE: only a small percentage of hand-picked subcontractors would be monitored by FLA, making such certifications of “no sweat” impossible. “… students and human rights groups from across the nation have consistently cited the inability of the FLA to carry out accurate and unbiased monitoring... The FLA model consists of using corporate auditors – upper class white men chosen from within accounting firms such as PriceWaterhouseCoopers - who visit a small percentage of factory locations and conduct worker interviews in front of managers. This method only contributes to violations slipping through the cracks, as auditors lack the ability and interest to uncover the truth during their infrequent and announced visits to factories.”  (press here for Global solidarity needed instead of corporate cover-ups By Mike Gonzales  Badger Herald (U. Wisconsin) 12/07/1999).

·        AT ISSUE: When companies themselves are directly responsible for choosing the factory monitors, the FLA can be used as a way to protect, rather than prevent, worker abuse (press here for John Hopkins).

·        Inside the U of Michigan Sweatshop By Micah Holmquist February 26, 2000.

·        WRC is the United Students Against Sweatshop alternative to the FLA initiative of Nike (press here for WRC site). WRC does not require a specific Code of Conduct, but it does require that member schools have a Code that includes: a living wage, the right to organize and collective bargaining, protection of workers' health and safety, public disclosure, compliance with local laws, protection of women's rights, and prohibitions of child labor, forced labor, and forced overtime.

·        Living wage is defined as an income that meets the worker’s basic food, clothing, health care, potable water, transportation, child care, education, and housing/energy costs + 10% income Savings.

·        WRC Consists of  over 35 universities nationwide including Brown, Stanford and Duke. Congressman George Miller (D-CA) was elected chair and U of Michigan student (and UNITE intern) Peter Romer-Friedman was elected secretary..

·        Group members said the WRC would work differently than the FLA by going straight to the workers… By putting power in the workers hands, the WRC would be able to respond directly to a new "fire-alarm" method of monitoring. Monitors from the WRC would arrive unannounced and inspect the site.  (University of Arizona).


In the next segment, Tucker invokes a personal experience narrative and her identity with women workers to assert that Nike can hear the needs of workers without trade unions. Her narrative suggests that Nike women workers are not concerned with the issues that the NGO reports suggest.  I contrast her response with the movement of Nike production to China and with several current reports that contradict the claims made by Tucker. 

Tucker - NOTE: Tucker response eliminated in compliance with request by  "Richard E. Wokutch" wokutch@vt.edu to not list any excerpt or portion of this IABS conference tape. 

 

·        Sewon Factory (South Korean-owned footwear manufacturer), Jiaozhou City Shandong Province, China - The best estimate is that Nike contracts with approximately 50 hidden factories in China, employing over 110,000 workers.  Forty percent of Nike’s footwear is now made in China… All of Sewon’s raw materials come from South Korea… Sewon’s managers further explained that they left South Korea in 1989 and relocated to China to escape the high wages and unions in South Korea… The starting wage making Nike sneakers at the Sewon factory was 360 rmb, or $43.37 U.S. per month, which would amount to $10.01 a week—20 cents an hour, for a 49-hour workweek… People in the community said Sewon never hires anyone over 25 years of age, at which point the workers are fired.  The factories do this to keep their workforce young and energetic, knowing that by 25 years of age, the workers are worn out (press here for report)

·        Nike clothing are produced at Hung Wah and Hung Yip Garment Factories Liuhuzai Industrial Area Xiajiao, Huizhou City Guangdong Province, China –The following research on Nike production in China was carried out between November 1999 and April 2000, by the Hong Kong Christian Industrial Committee (CIC), an extremely important independent NGO human rights organization. --- The workers are at the factory 15 hours a day Monday through Saturday, while being paid for 12.5 hours.  On Sunday they work a 10-hour shift, while being paid for 8.5 hours.  This puts the women at the factory 100 hours a week, while being paid for 83.5 hours… Wages: 20 to 23 cents an hour… Working Conditions:  12 workers to a Dorm Room; First Month’s Wages illegally withheld; Fined 5½ hour wages for being 5 minutes late; Never heard of Nike’s Code of Conduct… The workers biggest complaints were the lack of any leisure – working seven days a week –their being exhausted, and the very low wages. (press here for report).

·        China – The North American companies want us to think of these workers as individuals, young people out on a lark, traveling to the cities to try their hand at industry.  This is untrue.  They are working to help their families survive back home.  They need to save to send money home. (press here for report).


 Tucker is responding to Ballinger (Press for Change) who has conducted a wage survey of 2,300 Nike workers in Indonesia. Rather than dispute the findings, Tucker attacks the methodology. Her claim is that the entire survey is invalid because the interviewers did not check each workers' responses against Nike factory managers' records. I contrast this with documentation of the wage study and its methodology, which strikes me as a lot more sound than the Amos Tuck Business school wage study Nike sponsored. Of interest is the Ballinger wage study used workers as the interviewers and found results which are contrary to Nike's code of conduct and to the laws of Indonesia.