Nike Shoe Factory controversy
There has been a lot of controversy lately about the working conditions and low wages in overseas Nike shoe factories. This controversy has affected thousands of overseas workers, hurt the economy of Indonesia, decreased the gross revenue generated by the Nike Corporation, and lowered the overall opinion of the corporation. Nike has worked diligently to combat this controversy and help find a solution to end this controversy and help everyone involved. The purpose of this research is to provide a clear view of the controversy, a history of the events that lead to it, and solutions for the whole ordeal.In 1957, Phil Knight and Bill Bowerman met at the University of Oregon in Eugene. In the early sixties, they formed a company named Blue Ribbon Sports, which they ran from Knight's mother's laundry room. Then Phil Knight purchased two hundred shoes from the Japanese shoe company Asics. Knight and Bowerman designed the first two Nike shoes called the Cortez, named after the Spanish conquistador, and the Boston, for the Boston marathon. Business kept growing into the 1970's; they changed the name to Nike, after the Greek goddess of victory. The swoosh design was made by Carolyn Davidson and wa
In response to all these allegations, Nike did many things. They increased the age requirement to work at a factory to 18, increased wages 70% for entry level workers, joined the Global Alliance for Communities and Workers, and changed footwear manufacturing to a water-based method to improve air quality. In the statement issued by Nike, available on Nikebiz.com, it says, "No contract worker making Nike footwear product can be under the age of 18. No contract worker making Nike apparel, equipment or accessories can be under the age of 16" (Nikebiz 1). They also issued a statement regarding the wage increases. "...all 11 Nike footwear factories in Indonesia raised the wages of all entry-level workers (approximately 37% of the total workforce or 28,000 workers) effective April 1, 1998, from Rp172,500 to Rp200,000/month, exclusive of bonuses, allowances, or overtime. In October of 1998, Nike implemented a 25% wage increase for our footwear workers to alleviate the effects of the crisis, moving the minimum wage from Rp200,000 to Rp250,000/month"(Nikebiz 1). Also when the Indonesian government raised its cash minimum wage to Rp231,000/month, Nike increased their minimum wage from Rp250,000 to Rp271,000/month. All but one of the other apparel factories also met this new minimum wage. Another step Nike took was to join with the IYF, the International Youth Foundation, and form the Global Alliance for Workers and Communities. "The goal of the Alliance is to involve local Non-governmental Organizations (NGOs) in the assessment of workplace conditions through interviews, focus groups, and surveys of the workers themselves" (Nikebiz 4). This will help them to find out about their work experience and the worker's attitudes. This Alliance also will make sure the factories implement a new water-based method of footwear manufacturing to improve the air quality in the factories. Dionne, E.J. Jr. A victory over Nike: and a win for sweatshop workers. Commonweal, june 5, 1998 v125 n11 p7(1). Moberg, David Bringing Down Niketown: Consumers can help, but only unions and labor laws will end sweatshops. The Nation, June 7, 1999 v268 i21 p15.
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Approximate Word count = 1794
Approximate Pages = 7 (250 words per page double spaced)
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