This report concludes that although some improvements have been
made in working conditions in sport shoe factories producing for
Nike and Adidas Salomon in Indonesia, the measures taken fall
well short of ensuring that workers are able to live with dignity:
- WAGES: With full time wages as low as $US2 a day, workers
live in extreme poverty and those with children must either
send them to distant villages to be looked after by relatives
or else go into debt to meet their basic needs.
- FREEDOM OF ASSOCIATION: Workers have reason to fear
that active union involvement could lead them to be dismissed,
jailed or physically assaulted.
- WORKING CONDITIONS: Workers report that although there
has been some reduction in the physical and psychological pressure
under which they work, they continue to be shouted at and humiliated
and to work in dangerous conditions.
The report is based on original interview and focus group research
conducted by the author in July 2001 and January 2002 with a total
of thirty-five workers from four factories producing for Nike
and/or Adidas in West Java.
Low Wages
Workers live in extreme poverty. They earn full-time wages of
approximately $US56 a month and report that recent increases in
legal minimum wages have not kept pace with dramatic increases
in the cost of food. They depend on the extra income gained by
working extensive overtime and have been hit hard by the economic
downturn in the United States which has pushed down demand and
reduced overtime in most factories investigated.
Approximately half of those workers with children are forced
by their poverty to send them to live with relatives in distant
villages. Many can only afford to see their children three or
four times a year and find the separation extremely painful. Those
who live with their children commonly go into debt to cover their
family's basic needs.
Interference with Workers' Rights to Freedom of Association
The arrest, imprisonment and extended trial of Ngadinah Binti
Abu Mawardi from the Panarub factory (Adidas) has raised workers'
fear that union activity could endanger their liberty. At the
Nikomas Gemilang factory (Nike and Adidas) threats of violence
against outspoken workers and uncertainty surrounding the attempted
murder of Mr. Rakhmat Suryadi has generated anxiety that union
involvement could endanger workers' safety.
There has been a reduction in some forms of discrimination against
members of independent unions in several factories, but even in
these factories workers allege that factory owners have discriminated
against active unionists when firing workers.
During 2001 Nike refused a number of practical proposals put
forward by human rights groups which would have increased workers'
freedom to engage in union activity in particular factories.
Dangerous and Humiliating Working Conditions
There has been some reduction in the physical and psychological
pressure placed on workers, but this needs to be set against ongoing
practices which fail to respect their health and dignity.
Positives steps include:
- reforms which now enable workers to obtain sick leave.
- reforms which have significantly reduced the frequency of
sexual harassment.
Ongoing problems include:
- workers are still shouted at when they work too slowly, and
in some factories they are still humiliated by having their
intelligence insulted or being compared to animals such as dogs
or monkeys.
- it is extremely difficult for workers to take legally mandated
annual leave.
- respiratory illnesses associated with inhaling vapours from
toxic chemicals are still occurring, albeit less often.
- at the Nikomas Gemilang factory workers are still losing fingers
in accidents involving cutting machines.
- at the same factory workers who want to claim legally mandated
menstrual leave must still go through the humiliating process
of proving they are menstruating by pulling down their pants
in front of female factory doctors
Conclusion
While there have been commendable improvements, they fall well
short of ensuring that Nike and Adidas workers are able to live
with dignity. Nike and Adidas should:
- signal to factory owners and governments in supplier countries
that enforcement of labour standards, including increased wages,
will not lead to automatic relocation in search of cheaper labour.
- press for the enforcement of workers' rights to organise and
bargain collectively.
- commit to ensuring workers are paid full time wages which
are at least adequate to meet the basic needs of a family and
allow a small amount of discretionary income.
- work with international unions and human rights organisations
to establish a transparent factory monitoring program which
is verified by credible organisations which are independent
of (i.e. not selected by) the companies themselves.
Next: Introduction
