Nike Sweatshops to Leadership in Employment Practices
Describe the issues in the case:
Factory Conditions: Poor conditions in factories, child labor issues, widespread harassment, and abuse.
Wages and Employment Issues: Since the early 1970s Nike has been accused of using sweatshops and low-cost labor in the manufacturing of their products in underdeveloped countries. Then once the economies become more developed in those countries they abandon that country to find lower production cost once again. A good example of this is when they produced goods in South Korea, then once the workers became more productive and wages rose, a lot of their workers moved on to higher paying jobs and the ones who didn’t formed unions to request better work conditions and wages. Nike responded by moving their factories to the People’s Republic of China and Vietnam, which prohibited labor unions. The when workers’ demanded better rights in these countries , the factories once again closed and moved to another location that would allow Nike to continue to operating at low cost.( http://web.stanford.edu/class/e297c/trade_environment/wheeling/hnike.html)
Wages: It has been reported that Nike workers in Vietnam earned on average 20 cents per hour. During the first three months of employment with Nike workers receive 35$ per month which is below the average minimum wage in Vietnam. Which Nike defends as a training wage that Vietnam allows to be paid while employees are being trained. (http://ihscslnews.org/view_article.php?id=32)
Abuse: Workers have reported being attacked by their supervisors, others have been forced to kneel on the ground for 25 minutes with their hands in the air. There have also been allegations that supervisors sexually molested female workers. (http://ihscslnews.org/view_article.php?id=32)
Inhumane Working Conditions: In some of Nikes’ factories workers are not allowed to go to the bathroom more than once in an 8 hour shift, and are only allowed to drink...