Business

Just Do It – Or Else: Nike Accused of Sweatshop Abuses

Workers making Converse sneakers in Indonesia have accused managers of abuses ranging from throwing shoes at them, to slapping them and calling them dogs and pigs (severe insults in the Muslim dominated region).

Nike, the brand’s owner, admits that abuse occurs among the contractors that make its hipster-magnet high-tops but says there is little it can do to stop it.

Workers who spoke with The Associated Press and a document released by Nike show that the footwear giant has a long, long way to go to meet the standards it set for itself a decade ago to end its reliance on sweatshop labor.

One worker there said she was kicked by a supervisor last year after making a mistake while cutting rubber for soles.

“We’re powerless,” said the woman, who like several others interviewed spoke on condition of anonymity out of fear of reprisals. “Our only choice is to stay and suffer, or speak out and be fired.”

The 10,000 mostly female workers at the Taiwanese-operated Pou Chen plant make around 50 cents an hour. That’s enough, for food and lodging, but little else. Some workers interviewed by the AP in March and April described being hit or scratched in the arm – one man until he bled. Others said they were fired after filing complaints.

“They throw shoes and other things at us” said a 23-year-old woman in the embroidery division. “They growl and slap us when they get angry.”

“It’s part of our daily bread.”

At the Amara Footwear factory where another Taiwanese contractor makes Converse shoes, a supervisor ordered six female workers to stand in the sun after they failed to meet their target of completing 60 dozen pairs of shoes on time.

“They were crying and allowed to continue their job only after two hours under the sun,” said Ujang Suhendi, 47, a worker at a warehouse in the factory. The women’s supervisor received a warning letter for the May incident after complaints from unionized workers.

A Nike spokeswoman said the company was not aware of physical abuse occurring at those factories.

In response to widespread concerns about sweatshop labor, some contractors have simply moved operations to more remote areas, farther from the prying eyes of international and local watchdogs.

Nike has not published the locations of all factories making products for affiliate companies, which includes Converse, but plans to by the end of the year. They also say that they will be developing programs to teach managers cultural sensitivity and leadership skills.

(The Associated Press contributed to this story)

Comments (66)

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  • supertas
    Posted on July 14, 2011 at 12:05am

    They were being accused of that crap back in the 80′s. I remember. Bet their executives are pro Ostupid, pro union, until it’s their company. Then of course, it’s different.

    Report Post »  
  • Scot
    Posted on July 14, 2011 at 12:04am

    Sorry friends, I have been to these factories and worked with them for years. The truth is that a great many of the girls on the factory floor 15 yrs ago are now project managers or in a greater position. Not to mention taiwan is a very civilized country with a large middle class. I can honestly tell you this is BS no doubt!!

    Report Post »  
  • NormanDeArmond
    Posted on July 13, 2011 at 11:20pm

    Perhaps the new symbol of caring about people and social injusyice will be to go BAREFOOT. Doubtless the communist Cinese and laogai plants (probably one in the same) are far worse. Where else would an affordable shoe be made?

    Report Post » NormanDeArmond  
  • In The Right
    Posted on July 13, 2011 at 11:07pm

    It’s no coincidence that Nike/Converse target “inner city youth” & counter-culture hipsters (you know WHO I mean, members of THOSE Liberal “communities”) with their products though they treat their workers as “slaves”. Everyone knows that it’s more important for certain members of our society to have a trendy pair of “kicks”, Ed Hardy labeled “threads”, large flat screen TV, and other luxuries then pay off their college loans or save the money spent on overpriced items instead of renting an apartment/buying a home and getting their parents basement or the taxpayer financed Federal housing they reside in.

    As for pay the article states “,,,,,The 10,000 mostly female workers at the Taiwanese-operated Pou Chen plant make around 50 cents an hour. That’s enough, for food and lodging, but little else”, well I guess they should abstain from sex (if they can’t afford birth control) and hold off having children until they can afford it. If the workers at these plants don’t like they way they are treated they are free to start their own business or find employment elsewhere. I’m sure Obama is willing to give them sanctuary here in our great nation due to their “oppression” & provide them government jobs (unionized EEOC/AA) as long as they vote for Democrats, hate the USA, and are Radical Muslims.

    Report Post »  
    • redneck hickabilly
      Posted on July 14, 2011 at 12:46am

      you supply siders are losing the plot

      Report Post »  
    • Psychosis
      Posted on July 14, 2011 at 2:08am

      @ redneck

      what does supply side economics have to do with this ????? this is in indonesia………….a country far from having a supply side economy.

      so, to stop this lets pull these companies out so they dont contribute to this treatment…………then all those workers trying to survive on 50 cents an hour can figure out how to do it on zero

      this isnt the fault of supply side economics, this is the fault of crappy governments and stupid cultural differences……………..in indonesia they dont have a problem treating humans as animals much less as slaves ……………..islam has that tendency

      Report Post » Psychosis  
    • loriann12
      Posted on July 14, 2011 at 6:35am

      If they’re paying them 50 cents an hour and charging the prices they do for Nike shoes, how much would the price jump if they came back to the United States and had to pay Union wages? What’s the Union up to now? $20 an hour?

      Report Post »  
  • ssortors
    Posted on July 13, 2011 at 10:32pm

    hey this is the reason we have free trade right? so our jobs go to 3rd world countries so that they can resell here in the states and make a huge profit…for their stockholders. got to love it…. if Nike want s to fix the problems then make here.. and sell here… then again they will have to pay more for making the shoe and that only cuts into profits.

    Report Post »  
    • 101
      Posted on July 13, 2011 at 10:43pm

      No…BO is making America a second class third World Country, he must destroy the US economy to be competitive.

      Report Post »  
    • johnnyrockett
      Posted on July 13, 2011 at 10:58pm

      Get rid of unions and ********. Quit taxing job creators. and hey jobs will come back.

      Report Post »  
    • DisillusionedDaily
      Posted on July 13, 2011 at 11:03pm

      Boycott them until they bring those jobs back to the US. We will never change the world to be what we would like it to be, so if these things bother us we should stop sending our jobs to them.

      Report Post » DisillusionedDaily  
    • 101
      Posted on July 13, 2011 at 11:32pm

      North American Free Trade Agreement “NAFTA” signed in 1993. NAFTA has not only resulted in the loss of hundreds of thousands of jobs, but was the beginning of the end of manufacturing in the US…ex-CEO of GE, Larry Bossidy then CEO of Allied signal now aka (Honeywell) was board chairman of NAFTA at the time Clinton signed it into law! Funny how CEO’s for GE always play a key role with Democrats in office!

      Report Post »  
    • JRook
      Posted on July 14, 2011 at 12:12am

      @johnnyrockett Ok I know why Rush repeats the job creator line, as he chooses to say ignorant things to entertain his audience. DEMAND for goods and services creates jobs, not the wealthy. They provide the capital to expand production to satisfy the demand. Demand is directly related to the buying power within the larger segment of the populace, not the wealthy as there is a limit to how many houses or cars you need. If workers are paid enough to have discretionary income they demand more goods and services. This demand creates the need for more investment, which the wealthy provide for sure for a adequate ROI. They are not driven to create jobs, they don’t create jobs. They provide capital necessary to meet DEMAND. zIt was the fast growing middle class after WWII that created jobs and fuel the economic boom, not the wealthy. Although they did get wealthy from their investments in the post war explosion in demand.

      Report Post »  
  • Eraldo NY Tea Party
    Posted on July 13, 2011 at 10:28pm

    This is going on for the longest time.

    I’m happy to see that finally they will be exposed to the light.

    God bless.

    Jobs to NYC now!!!

    people are getting violent on the streets, no jobs, no peace bro, mac-fights, ihop-fights for nothing.

    Pray for our people

    Report Post » Eraldo NY Tea Party  
  • 101
    Posted on July 13, 2011 at 10:22pm

    Nike’s own promotional materials acknowledge that its labor costs for producing a pair of shoes are just $4.90 while the shoes retail for $150.
    “Nike” pays Indonesia entry-level wage $2.46 a day. Labor groups estimate that a livable wage in Indonesia is about $4.00 a day. In Vietnam the pay is even less- 20 cents an hour, or a mere $ 1.60 a day. But in urban Vietnam, three simple meals cost about $2.10 a day, a living wage in Vietnam is at least $3 a day.

    Report Post »  
    • In The Right
      Posted on July 13, 2011 at 11:24pm

      It’s it great that THEY won the Vietnam Conflict, they’re doing so well. (sic) I bet they’re wishing they lived in a nation with a “Capitalist” system rather then one rooted in Communism.

      Report Post »  
  • Unionman
    Posted on July 13, 2011 at 10:16pm

    This is the company that brought you Tiger Woods and Michael Vick….seriously

    Report Post »  
  • frongjumping
    Posted on July 13, 2011 at 10:11pm

    This really doesn’t really surprise me whatsoever. These factories are located in places where human life is not respected properly, so this is what happens – the factory owners abuse their workers, the local government looks the other way, and the workers are the ones who suffer for it. Personally, I only buy New Balance, who at least still makes about a quarter their shoes in America. Nike doesn’t make anything here at all.

    Report Post »  
  • cactusjoe
    Posted on July 13, 2011 at 10:02pm

    Hay leave them alone they are union free and helping there economy be dynamic so says our talk radio guys.

    Report Post » cactusjoe  
    • BrotherWill
      Posted on July 13, 2011 at 10:21pm

      Its not a Union issue moron, its a Muslim issue.

      Report Post » BrotherWill  
    • MimiR
      Posted on July 13, 2011 at 10:22pm

      There’s a reason people stay. The alternative is worse. There are other jobs–but those jobs make sweatshops look attractive.

      The answer isn’t to shut down the plants and leave people without work. Any one of them could quit at any time. The choose bad conditions over losing their jobs and having to go somewhere else–which will assuredly have worse conditions. The answer is MORE investment and MORE factories, so that the factories must compete over the labor force and a job where people yell at you and occasionally throw a shoe isn’t worth staying at. Conditions and pay will improve only as the labor market gets tighter and more competitive.

      If you shut down the factories, you’re doing it for your own conscience, not their wellbeing.

      Report Post »  
    • JRook
      Posted on July 13, 2011 at 10:39pm

      @MimiR That is free market dogma. and ignores the factors that drive sustainable economic growth. It is the type of logic that says that wealthy create jobs. They don’t demand does. The wealthy merely supply the capital and do so only based on an adequate ROI, not because they are driven to create jobs.. There are no more or less jobs in China or India because Nike or anyone else pays $.50 an hour or $5. Particularly when Nike controls the supply of their footwear in order to maintain a price of $150. The fundamental flaw in your argument is that when you only pay people $.50 an hour there is no corresponding increase in demand because they cannot afford to buy anything. Without an increase in demand there is no need for additional factories and no expansion in jobs. Clearly, none of these workers could buy a pair of Nike on their income which reduces the overall demand for Nike and everything else. They could make as much money as they do today if they paid workers enough to buy them. Certainly enough to make up for the increase in wages.

       
    • faithkills
      Posted on July 14, 2011 at 1:48pm

      @jrook,

      What difference does it make if they can buy the shoes or not? If that was a coherent thought we should all work in jet factories. Or better yet for the Fed!

      The fact is those people work there because their other options are worse. Those options you would doom them to.

      Many of those sweatshop situations are a result of government. Local governments hold up the factory for cash, but in exchange the factory gets a labor monopsony. The local government allows no other factories to open so the local labor has only the option of backbreaking subsistence living or working in the sweatshop. In a real free market cheap labor would drive competition for the labor and drive up wages. GOVERNMENT is what stops this process in all case.

      In short, government causes income disparity. In fact beyond the Constitutionally legitimate functions of government there is little else the US government DOES than cause income disparity. Licensure laws, regulation, skewed tax codes, union protection, minimum wage, tariffs, etc, etc, etc. All result in redistribution to protected classes from the taxpayer and consumer. Then we toss the people disemployed and underemployed welfare bones. The middle gets squeezed by redistribution from middle to top and middle to bottom. The top and bottom exist BECAUSE of govt.

      It’s no accident that in the US the most screwed up economies are health care, education, credit, and banking in general. All the most heavily regulated and meddled in sect

      Report Post » faithkills  
  • jzs
    Posted on July 13, 2011 at 9:58pm

    Whoa Nelly! You guys are supporting workers instead of the “job making” big companies??? Should they unionize and demand better working conditions? No, that’s un-American. Is it unfair for a company to pay the absolute minimum wage and have the most miserable, unsafe working conditions that a desperate parent will tolerate to feed their children? Of course, that’s simply Capitalism. If they don’t like working at Niki, maybe they can start their own business or something and become millionaires. That’s the American way, at least 50 years ago, although it’s now fashionable again.

    I am SO disappointed in the comments I’ve read so far…

    Report Post » jzs  
    • faithkills
      Posted on July 14, 2011 at 10:48pm

      I know, right? Feed people a one sided specious emotional story and they turn into liberal economic ignorami.

      It’s like they think all these people are too stupid to find the best work they can. But of course it is the best work they can find and there’s no competition for labor because the local government gave the factory special privileges. A perfect example of ‘economic planning’ being used as an excuse for corruption and to limit competition. The government is treating their populace like cattle by excluding competition for their labor.

      Even so, the worst thing you can do for the workers is not buy Nike shoes. By all means close the factory, send them back to burning dog turds for fuel and eating them for food. They will appreciate your ‘consideration’ as they try to raise their children in a subsistence lifestyle.

      Report Post » faithkills  
  • mom4times
    Posted on July 13, 2011 at 9:57pm

    o k …..well then….no nikes for me either…..until they are MADE IN AMERICA…..which is unlikely to happen with all the taxes and regulation….license issues…..and b.s. from the goverment

    Report Post » mom4times  
    • SovereignSoul
      Posted on July 13, 2011 at 10:10pm

      Right. Let’s get rid of all those annoying regulations and laws and bring those 50 cents/hour jobs to the United States. I’ll bet people will line up around the block to put in an application.

      Report Post » SovereignSoul  
  • RightPolitically
    Posted on July 13, 2011 at 9:55pm

    Do you think the Chinese workers who supply almost everything we buy these days treat their people any differently? The upside is, THEY HAVE JOBS OVER THERE while we do not!

    Report Post » RightPolitically  
    • SovereignSoul
      Posted on July 13, 2011 at 10:15pm

      I can create plenty of jobs that pay 50 cents/hour. Just leave your contact info and I’ll send an application. I can see it now. I‘ll create jobs in America and I’ll be famous and admired by millions. And, I’ll be rich, too.

      Report Post » SovereignSoul  
    • GRAMPA-D-NH
      Posted on July 13, 2011 at 10:22pm

      Never visited a shoe manufacturer but walked through dozens of factories in other industries in China. Biggest surprise observation – how clean, safe, well lit, organized, and filled with the newest tools and machinery from Japan and Germany they were. Purposeful, disciplined workers seemed to be well treated. I‘m sure there are plenty of poor standards I didn’t see, but just saying, we need to quit fooling ourselves. China is for real and they are steadily improving conditions for its workers. Of course, the endless supply of labor will support keeping improvements reasonable and “sustainable” for its industries, something our unions and the dim-o-Rats in this country failed to grasp.

      Report Post » GRAMPA-D-NH  
  • SPOT_OF_TEA
    Posted on July 13, 2011 at 9:54pm

    Big business owners and rich celebrities have become wealthy at the expense of the disappearing middle class in America and slave labor in 3rd world countries.

    Report Post » SPOT_OF_TEA  
    • JRook
      Posted on July 13, 2011 at 10:18pm

      Absolutely and let’s remember Nike charges upwards of $150 for their footwear. So there cost is about $10 with about $1 going to labor. See how much we are benefiting from the exploitation of overseas labor. Now tell me how Nike can’t afford to pay higher taxes. And tell me again how they are job creators. Oh wait they need to pay Lebron $10 million a year so he wears them. What they are practicing is the capitalism Marx warned about. I have been fortunate enough to be involved and benefit as an owner, investor or management of 6 start up companies over the past 20 years. I feel strongly about the positive impact that capitalism, private ownership and entrapreneurship have made on our economy and society. However, I believe what Nike and similar companies are doing to the US by way of such exploitation is criminal. We charge individuals throughout the world for war crimes and human rights violations. But companies continue to treat people like this and are rewarded for it. Once a large enough group realizes that like Milton Friedman pointed out, how we spend our money as a group is our strongest vote…a lot of things can change.

      Report Post »  
  • eat-more-bacon-USA
    Posted on July 13, 2011 at 9:54pm

    Again. Yawn.

    Report Post » eat-more-bacon-USA  
  • Ironmaan
    Posted on July 13, 2011 at 9:52pm

    If Nike can’t ensure that their shoes are not made by slave labor outside the US, then they should manufacture them in the US.

    Report Post »  
    • mharry860
      Posted on July 13, 2011 at 9:55pm

      That’s why you should only buy New Balance, still made in the USA!

      Report Post » mharry860  
  • kentuckypatriot
    Posted on July 13, 2011 at 9:51pm

    Guess I won’t be buying Nike anymore. Why do they use contractors? Someone explain please.

    Report Post » kentuckypatriot  
    • GRAMPA-D-NH
      Posted on July 13, 2011 at 10:05pm

      Plausible deniability and ease to redirect to other suppliers when trouble surfaces. Besides, all the money is in concept, branding, marketing, distribution, with a little technical innovation ocassionally tossed in. Manufacturing? Ha! That’s for the low rungers of the economic food chain made so by US unions, the EPA, OSHA, predatory lawyers, workers comp, confiscatory taxes, etc, etc.

      Report Post » GRAMPA-D-NH  
    • JRook
      Posted on July 13, 2011 at 10:48pm

      @GRAMPA-D-NH you were correct and on a roll right up until the last part. You need to stop listening to Rush on matters he knows nothing about. Without the union movement in the US that ensured fair wages, safety and reasonable benefits the economic explosion that occurred in the US after WWII would not have occurred. It was fueled by workers making enough to be able to purchase homes, cars, appliances, furniture, TVs, etc. While they did get a little out of control for a while, the recent changes in the auto industry have brought them back to reality. Are you suggesting we should get rid of the minimum wage and have people work for $2 and hour. Trust me a deflationary spiral is not something you want to witness in the US. I don’t care what the amount is in relative terms in Indonesia $.50 an hour with the virtually nothing left over after company housing and food is slavery.

      Report Post »  
    • GRAMPA-D-NH
      Posted on July 14, 2011 at 12:18am

      JROOK – I’ll grant you your premise and express my respect on the “union movement” contributing to achieving the good things you cite. My point is things should change when a movement achieves most or all of their agenda. The civil rights movement through its captivating leaders and right cause, acheived equal justice under the law and access to America’s institutions for African Americans. The hang-ons like Rev. Jackson, Sharpton, Wright, etc as former civil right leaders became rebels without a cause but where determined to retain power and relevancy. IMO, they evolved into race pimps and baitors ultimately making our society more divisive and distrustful and largely responsible for expanding the dysfunction and social problems now rampant in the black community. This is what I feel unions and union leadership has morphed into. Success left them without a cause so to retain relevancy, power, and money, they maintained a hostile posture with management and capital. The outcome is they have driven the pendulum too far on regulations, labor and benefit costs. Most modern economies and many non-union US businesses have adopted the management practices (LEAN-Six Sigma for example) that advocates close, respectful, trusting interaction between management and labor. When I visit a union operation, I don’t get that feel and it shows in the unfavorable ways. I feel unions do more harm than good now and that worker and national prosperity would be better off without them.

      Report Post » GRAMPA-D-NH  
    • faithkills
      Posted on July 14, 2011 at 11:05pm

      @jrook

      Demand is meaningless without production. Demand is infinite. I’m sure you want a lot of stuff but that is irrelevant until you provide a good or service to exchange for it. Wages are ultimately determined by productivity, and productivity is influenced by capital. If you try to force remuneration in excess of your productivity (eg pro union legislation, min wage laws) all you do is disemploy other people. That’s the whole point of unions, shift the demand curve for labor. But it has a cost and the cost is overall reduced productivity and thus overall reduced wages. (eg Wisconsin) The essential fallacy of both marxist and keynsian ‘economics’ is it ignores the time axis for the most part and when it doesn’t it conflates causation. Prosperous economies have ‘X’ and thus we build ‘X’ “infrastructure” (HS rail, or w/e) and we will have prosperity. That is a cargo cult.

      Or “We need to find the next google” as our moron pres recently said. The problem is that’s almost impossible to predict, companies try and fail all the time. But government will fail, and KEEP wasting resources. And secondary enterprise will form around the artificial one. Then when the artificial one inevitably fails (eg FNMA housing market) everyone suffers.

      Report Post » faithkills  
  • Midwest Blonde
    Posted on July 13, 2011 at 9:49pm

    So boycott Nike. *I don’t wear Nikes and not likely too in the future*

    That being said, we all know that these 3rd world countries HAVE BEEN willing to put up with the BS for the income. The workers are slowly learning about “human rights”. Too bad Nike and other companies won’t go out of business due to boycotts….

    Report Post » Midwest Blonde  
  • TaunTaun
    Posted on July 13, 2011 at 9:48pm

    I prefer Asics for shoes, and Bates for my boots. Last quite a while, and a lot cheaper too.

    Report Post »  
  • mrsmileyface
    Posted on July 13, 2011 at 9:48pm

    Great plan!! Have the shoes made in America!!! So then NIKE has to deal with Unions. So I guess your ok with spending $500 on those fancy Air Jordans. Or over $300 for middle of the line sports shoes.

    Report Post » mrsmileyface  
    • JRook
      Posted on July 14, 2011 at 12:01am

      Don’t tell New Balance as they still assemble sneakers in the US. Nike sells their sneakers for upwards of $150 with $1 of labor, you really think $15 in labor would change the economics that much. I have managed in union situations. The union situations that have gotten out of control are due to bad management and poor leadership. They are not the reason for the economic decline in the US.

      Report Post »  
  • faithkills
    Posted on July 13, 2011 at 9:46pm

    They take the jobs because they are the best available to them. If you don’t buy products they make then you are dooming them to WORSE conditions. Big favor you will do them if they shut that factory,

    Report Post » faithkills  
  • Gypsy123
    Posted on July 13, 2011 at 9:43pm

    I don‘t buy Nike’s t hank goodness

    Report Post » Gypsy123  
    • SovereignSoul
      Posted on July 13, 2011 at 10:18pm

      What do you have against Nike; a stunning example of capitalism and free trade?

      Report Post » SovereignSoul  
  • Whyismynamealwaystaken
    Posted on July 13, 2011 at 9:40pm

    You are right my friend. No nikes for me until they improve the treatment for workers.

    Report Post » Whyismynamealwaystaken  
  • Skip63
    Posted on July 13, 2011 at 9:36pm

    NIKE = Need Indonesian Kid Employees.

    Report Post »  
  • getalong
    Posted on July 13, 2011 at 9:30pm

    They say there is little they can do about the abuse. Here is an idea, have the shoes made in America!

    Report Post »  
    • SovereignSoul
      Posted on July 13, 2011 at 9:47pm

      Maybe they should organize and form a union. Oh wait…we are against unions. Corporations are always mindful of the needs of the working class. This story must be pure liberal propaganda.

      Report Post » SovereignSoul  
    • vennoye
      Posted on July 13, 2011 at 9:48pm

      You are right!! Have never been a big NIKE fan….now I understand why….

      Report Post » vennoye  
    • vennoye
      Posted on July 13, 2011 at 9:50pm

      Sorry, Reply was to Getalong…….not SovereignSoul.

      Report Post » vennoye  
    • chips1
      Posted on July 13, 2011 at 9:51pm

      BO will never allow that to happen. He thinks that a few slaps and kicks shouldn’t matter as long as the $.50 per hour spreads the wealth.

      Report Post »  
    • David Landrum
      Posted on July 13, 2011 at 9:53pm

      I would love for Nike to make shoes in America (and buy more of their product), but they cannot. Regulation, taxes, unions and all the other anti-business stuff we have in this country prevent it.

      Report Post » David Landrum  
    • SovereignSoul
      Posted on July 13, 2011 at 10:06pm

      So they would make the shoes in America if we would legalize sweatshops in America. Sounds Great! What are we waiting for?

      Report Post » SovereignSoul  
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