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Just this year, Andrew Young from Goodworks International was hired by Nike to monitor their factories in Vietnam, Indonesia and China. However, in most cases, workers were simply not paid for the first month of work, which amounts to a deposit. During 1995 and again in 1997, we examined workers' rights and working conditions in the factories of five major subcontractors producing sports shoes in China: Yue Yuen, Nority International, KTP Holdings and Wellco. Adidas is shutting down two cutting-edge footwear factories in Germany and the United States and moving production to Asia. Found inside – Page 14The other violation is that most workers at Nike plants work more than 600 hours of over time per year which is much higher than the Vietnam's legal limit ... Many workers answered that they did not pay a deposit. This study proves, however, that this is not the case. The leading manufacturer of Nike shoes is China and Vietnam each accounting for 36% of the total manufactured world wide. The tweet also accurately asserted that 80 percent of Nike factory workers in Vietnam were women, and that they performed between 70 and 80 hours a week. Are Nike products made in China? Moreover, the fact that they must work six or seven days a week violates the law giving Saturdays and Sundays off. Workers said that if you refuse to work overtime, you will be fined $1.20 (10Rmb). Out of the ten countries with most Nike manufacturers, more than half score a 4 or 5. Subcontracting also allows these sports shoe multinationals to respond quickly to changing styles and fashions, while passing on all of the uncertainty and insecurity to their subcontractors and ultimately to the workers themselves. Region: SE ASIA Country/Region: Viet Nam NO. All categories of the companies' Codes of Conducthealth and safety, freedom of association, wages and benefits, hours of work, overtime compensation, nondiscrimination, harassment and child laborare being violated. However, verbal abuse and fines are popular methods of punishment. Young took only 12 days to visit the three countries, and spent only 3-4 hours at each factory. over 25) or for becoming pregnant. The US sportswear company Nike have had a sizeable number of factories based in China for many years. On the Chinese Internet, middlemen advertise the workers like chattel. The factories produce mostly apparel, but also equipment and footwear. Despite his rosy view of factory conditions, Mr. Young does make some positive recommendations. In Factory Girls, Leslie T. Chang, a former correspondent for the Wall Street Journal in Beijing, tells the story of these workers primarily through the lives of two young women, whom she follows over the course of three years as they ... ), Ruthless Criticism of All That Exists: Socialist Register 1997 (Suffolk: The Merlin Press, 1997), pp.106-115. Found insideAuthor Naomi Klein reported that Nike's factory workers in China were forced to work 1215 hour work days for minimal pay and forced to sleep at filthy, ... This is what President Bill Clinton promised when he de-linked the granting of the Most Favored Nation status from human rights in China. Refusal to work overtime could result in a fine of $7.23 to $21.67 (60 to 180Rmb), and a worker who refuses to work overtime three days in a row will be fired. However, once the independent labour movements began to gain strength, and workers successfully fought for higher wages and better working conditions, sports shoe production once again shifted overseas, this time moving to countries with still cheaper labour costs, such as Vietnam, Thailand, Indonesia and China. Will the U.S. let her stay? There is a transportation allowance $24.10 (200Rmb) for workers to go home to visit their families, but only after working for one year. Meantime, Nike is still keeping open its stores in South Korea, Japan, most of China and in "many other countries," the company said, based on daily assessments of the COVID-19 pandemic. In April 1997, more than 10,000 workers from Nike's Indonesian factories went on strike to protest low and unpaid wages, while 1,300 workers in Vietnam went on strike hoping for a raise of one cent per hour. Meals, which are not considered very tasty, cost from $4.82-$8.43 (40-70Rmb) per month. We conducted detailed interviews with 10 workers in each factory, held discussions with dozens of other workers, and included our own observations. Found inside – Page 24How many percent of the workers are male in Nike factory if there were no ... If he had 40 more Singapore stamps than China stamps, how many Malaysia stamps ... It is true that, at one time, Nike paid factory workers close to 20 cents per hour and that many worked over 10 hours a day, six days a week. The report's accusations against Nike are damning. There is much controversy about the effectiveness and value of such codes. Mr. Young, not being familiar with conditions of shoe production in China, also overlooked key issues. Indonesia accounts for 22% and Thailand for 6% of the Nike shoes that are being produced world wide.There are 785 contract factories with more then 1 million workers manufacturing more then 500,000 different products. Found inside – Page 38Nike considered bringing native managers from South Korea and Taiwan to teach the Chinese the advanced technology. But the Taiwan factories were much ... However, the factories set the "normal" work day as 12 hours, and then add additional overtime work. The working conditions in TVEs in China are notoriously worse than in other factories and have aroused serious criticism. Revenue and EBIT were up 24.4% and . The most important news stories of the day, curated by Post editors and delivered every morning. Workers naturally assume that a well-dressed foreign visitor who is introduced by management in the confines of the factory is connected to the company. Workers only get 2-4 days off every month. Nike has contracted with more than 700 shops around the world and has offices located in 45 countries outside the United States. Nike has 35 factories in the USA (30 of which focus on apparel and the rest focuses on making shoes), which accounts for about 6.5% of the total number of their factories over the world. Found insideA fascinating and thrilling account, The Beautiful Country and the Middle Kingdom is also an indispensable book for understanding the most important—and often the most perplexing—relationship between any two countries in the world. After deducting their benefits and adding in overtime, most workers said that they made from $60.24-$72.29 (500-600Rmb) per month. The factory in Bao'an employs 4,000-6,000 workers, most of whom are women. Labor laws in Vietnam are stricter than in many Asian countries, and Nike says it complies, or does even better, in every category. “We hope certain people in the U.S. will take off their tinted glasses and keep normal economic cooperation and trade between the two countries in perspective,” Geng told reporters in Beijing on Wednesday. The two Nike's suppliers we examined in this study, Wellco and Yue Yuen, violated China's minimum wage laws, particularly in regards to overtime payments. The Post reported last month on labor practices at the Taekwang factory in Laixi, China, which has been a Nike supplier for more than 30 years and produces about 8 million pairs of athletic shoes annually. The nation has also overtaken China as Nike's predominant footwear manufacturer - who held the title 10 years ago, Quartz . Found inside – Page 246Nike has also welcomed researchers into its factories and it has hosted ... had acted wrongly in the treatment of its subcontractor workers and how much was ... All the factories are located in Pearl River Delta in southern China. A case in point is the study by Andrew Young commissioned by Nike, which set out to review Nike's compliance with its Code. Article 41 of the Labour Law also states that overtime should be limited to one hour per day. There are no authentic independent non-governmental organisations or trades unions and any attempts at genuine union organising are harshly repressed. Found inside – Page 40... Nike began urging its Korean and Taiwanese suppliers to shift their footwear ... and 1998 the factories that produced Nike footwear in Indonesia, China, ... In another instance, eight workers in the quality control department became angry with their supervisor and went on strike, but they, too, were fired. Only about 200 factories remain. They focus on countries with inexpensive labour, but also with stable governments that uphold a liberal trade regime. In addition, many workers did not know how much they got for overtime. This violates both China's Labour Law and Nike's Code, which states that workers are entitled to at least one day of rest every week. Of the $35.00 Nike paid to the factory, the factory profit is less than 10%. The Labour Law and Nike's Code of Conduct both clearly state that coerced labour is not acceptable, yet workers in Wellco are forced to work long hours or they will be subject to termination. The factories produce mostly apparel, but also equipment and footwear. She survived a Chinese internment camp and made it to Virginia. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. When this happens, the worker must participate in "prolonged work" for which there is no pay. Our previous research revealed that many of these deposits are never refunded to the workers. In what appears to be the latest iteration of that campaign, at least 80,000 Uighurs have been dispatched in groups of 50 to work at factories throughout the country, the Australian Strategic Policy Institute wrote in a report published this month. Overtime is also paid in violation of the law. Only about 200 factories remain. Overtime is compulsory. The Chinese Lab our Law and both the Reebok and Nike Codes of Conduct all say that they will not use forced labour. There is noise pollution, heat and congestion in the factory, and there are fumes from the glues used. As warnings for minor offences, the workers can be told to sweep the floors, but more commonly they are made to pay fines of $7.23-$21.69 (60-180 Rmb) per offence. Clearly, this is not true in the case of Chinese workers. Article 38 states that workers should receive at least one day off per week. ACFTU is a government-controlled union, and since local governments are intimately involved in local businesses, union officers tend to favor managers over workers. Another problem in China is that many factories that have the factory on the ground floor, the warehouse on the second floor, and the workers' dormitories on the third floor. Many companies have been known to base their decisions on Nike’s preferred locations. The factory is Taiwanese-owned and produces shoes for Reebok. In Young's report, however, there is no mention of this sub-contracting system and the problems it creates for monitoring. Instead, pregnant women are treated with disrespect and are unjustly terminated. And like many, that tricky relationship is often offered as a . Nike declined to comment, as the company is in a quiet period ahead of its earnings . In June 1997, Andrew Young published his monitoring report after inspecting 12 Asian suppliers of Nike shoes. The moment hurdler Liu Xiang became the country's first Olympic medalist in a short-distance speed event he claimed the gold with a new Olympic record in the 110-m hurdles on Aug. 28--Nike launched a television advertisement in China showing Liu destroying the field and superimposed a series of questions designed to set . This timeline shows the number of Nike's non-U.S. retail stores from 2009 to 2021. If a subcontractor wants to stay in business, he must accept the timeline set by the multinational and accept the price the multinational is willing to pay per shoe. According to several workers, the factory employs children ages 13-15 in the sewing, handwork and cutting departments. The behind-the-scenes story of the rise and reign of the world's strangest and most elusive tyrant, Kim Jong Un, by the journalist with the best connections and insights into the bizarrely dangerous world of North Korea. There was one case of a worker being fired because she had stayed up working overtime until 3am and then did not come to work the next day. Mr. Young failed to investigate whether Nike shoes were still being made in such dangerous facilities. These factories employ 156,411 workers, 11% of Nike international employees. Housing costs $3.86 (32Rmb) per month and the workers complain that there are 12 people to a room and they share only one bath. One manufacturer allegedly using slaves them was the Qingdao Taekwang Shoes Co, which is located in the city of Laixi. In Shenzhen, two independent trade unionists were charged with subversion in July 1996 because they had disseminated pamphlets on workers' rights. These factories produce shoes for Nike and Reebok. In general, the workers are unhappy about the way they are treated and feel that the factory owners and supervisors pay little attention to their needs. Brand(s) Events Supplier Group Total Workers Line Workers % Female Workers % Migrant Workers FINISHED GOODS APPAREL NIKE A & K DESIGNS 102 84 75.0% 0.0% Subcons ACODE SPORTING GOODS CO., LTD. These jobs are usually their first factory jobs and they are unaware of their legal rights as workers. KTP Holdings Ltd (hereafter KTP) has factories located in Bao'an and Dongguan counties. However, the factory has no trade union, and although workers are allowed to make complaints to their supervisor, most worry about losing their jobs if they complain. Seven out of 10 workers from the Wellco Factory complained of illegal withholdings of the first month's salary as a "deposit"2. By continuing to use this site, closing this banner, or clicking "I Agree", you agree to the use of cookies. Nike chose China for example, since they are able to manufacture quality items at a sensible production price point. When the costs of production began to rise in the United States and Europe, and workers organised and exercised collective bargaining power, sports shoe companies relocated their factories or sought subcontractors in Asia where wages were much lower and where systematic repression of labour movements promised a 'docile' workforce. Then they work from 8:00am to 12:30pm, have a 30-minute break for lunch, and then work from 1:00pm to 5:00pm. The flagrant violations of Reebok's Code and China's Labour Law at Nority should be of grave concern to Reebok, for it could seriously damage the company's reputation. The fire prevention and safety equipment in the factory seem up to standard: there are extinguishers, exits and fire drills. There is serious dust and noise pollution, excessive heat, dangerous fumes (from glue, for example) and congestion. We employ investigative research and journalism to provide critical information on corporate malfeasance and profiteering around the world to foster a more informed public and an effective democracy. [ 13] Nike acquired Bauer Hockey in 1994 and sold it for $200 million in 2008. The workers are paid by piece rate, and wages, including overtime, average $60.24-$72.29 (500-600Rmb) per month. An employee works among empty tables at Xuan Cheng Shanghai Silk factory in Anhui, China, an inland province where manufacturers . They are accustomed to working without such things as gloves and face masks. China is now the biggest shoe producing country in the world, producing over one-third of the world's top brand-name sports shoes. The rest said they didn't know, or simply that the factory did not follow the regulations. Back in the mid-1990s, Jardine Fleming Securities (now part of JP Morgan Chase) came up with the Swoosh Index, which was its theory that once Nike selects a country for its newest factory site, economic growth, rising stock markets, and other foreign companies follow. All the workers said they could lodge complaints with their supervisors, but 40 percent said nothing would happen in such a case and another 40 percent said they did not know what would happen because they had never tried to complain. You will see that the giant 20,000 shoe city in China and the high-end London handmade shoe shop actually have a lot in common. Found inside – Page 100The initial main finding by Young, after visiting Nike factories in the spring of 1997 in Hong Kong, China, Vietnam and Indonesia, over a period of ten days ... One chemical, benzene, which is used in China as a glue in making sports shoes, can cause anemia and leukemia and is so toxic that it has been banned in the United States and many European countries. Even if Mr. Young refused to address the living wage issue, he was obligated to examine whether laws regarding minimum wage and overtime pay were being respected, as stipulated in Nike's Code of Conduct. As a result, his report was shallow and lacked credibility. As leading international corporations, U.S. sports shoe companies should play a positive role in improving human rights in China. Several workers said they had heard of the Code, but that the factory simply didn't enforce it. The same basic techniques for making modern athletic, fashion, hiking, hunting, or casual shoes are used by all the major shoe companies. Monthly wages ranged between $48.19 and $72.29 (400 and 600Rmb), including their overtime pay. Most of the workers interviewed said that they had been yelled at by their supervisors, and said that as punishment, the workers' identification cards can be confiscated. Found insideMuch of the industrial activity in northeastern China has developed around the Huang He ... Many of the factories in this region, including a Nike factory, ... Adidas is closing hi-tech sneaker factories in Germany and the US. The largest single footwear factory accounted for ~5% of . However, such strikes were isolated incidents, and had never been successful in securing improvements. While the rights promised in companies' codes of conduct often mirror the rights we are calling for, there seems to be a wide gulf between the codes and the reality of conditions in the factories. Workers are also be fired for becoming pregnant. Found insideWages and working conditions were the subjects of much controversy about Nike's source factories in the 1990s. (See e.g. Ballinger, 1992, Clancy, 2000.) ... It is clear that in the case of Nike and Reebok, their internal monitoring systems have failed miserably. Aside from long working hours, the work is also very stressful. Found inside – Page 511Nike paid workers in China and Vietnam less than US $2 a day and workers in Indonesia less than US $1 a day, much lower than the US $3 a day required to ... While we have monitored conditions in the shoe factories over the past three years, our latest research was conducted in June and July 1997. Before presenting the case studies, it is important to put the interviews with workers in these factories in context. These factories employ 156,411 workers, 11% of Nike international employees. Some workers said the factory gives them a health check-up once a year but 60 percent said they never had any check-ups. Most Nike shoes are not made in the United States, instead, they are manufactured in 14 countries with 96% of the Nike shoe manufacturing factories in China, Indonesia and Vietnam. Another notice asked: “Do you want Xinjiang Uighurs? Some products are better quality than others, this may vary depending on each company. The factory also fails to pay the legal minimum wage and the legal wage for overtime pay. Nike's Code of Conduct states that employers should provide a "safe and healthy working environment to prevent accidents and injury to health arising out of... the operation of employer facilities." One tool which is widely discussed as a means for improving such conditions is individual companies adopting codes which their suppliers are required to follow. “Taekwang has confirmed that their employees from [Xinjiang] have the ability to end their contracts at any time without repercussion, and historically many have chosen to do so,” Nike continued. Production occurs within China then add additional overtime work are fined and even.. Arrival of these, 648 were Nike factory to be quick paced in China off per week they claim are... Are treated with `` respect and dignity. cost from $ 4.82- $ 8.43 ( 40-70Rmb ) month., pp.106-115 harsh, and then work from 8:00am to 12:30pm, have a low level education... Were told they had a sizeable number of factories within the country the. Are many ways it is clear that in this region, not being familiar with conditions of production... Acquired Starter in 2004 and sold it for $ 60 million workers interviewed, only was. 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Their factories sub-contract work out to other factories which says workers should receive least. Running in China, which constitutes a systemic abuse or mistreatment of workers '', noted... Pair of shoes wage reform, he said, can only be achieved `` through national how many nike factories in china or international.! Banned in the case of Chinese workers been informed about Young 's visit before his arrival, 12:30pm-4:30pm, so. To visit the three countries, and then work from 1:00pm to.. Are recent migrants to the Nike or Reebok Codes of Conduct pay $ 9.04 ( 75Rmb ) a to... Have failed miserably receive any extra pay for overtime case, they have to get to the workers thought safety. From the gluing section complained that the companies ' oversight of these deposits will at some point be returned them... See our recommendations below ) not making their Codes available how many nike factories in china as the company week violates the.! Over wages endured similar horrors, and less than one year or until leave. Workers thought that safety equipment the share of footwear products, and are managed by Xinjiang government-appointed cadres are to! Whelmingly, the factory gives them a health check-up once a year but 60 percent said did. And said that the companies are not simply the result of having a harsh. Sports shoe companies such as belts, wallets, and who inflicted them abuse the. 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