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23 Feb 2001, Global alliance report on Nike Indonesia
Dear all,
Yesterday The Global Alliance (of which Nike is a member) released
a 106 page report on the labour conditions at 9 suppliers of Nike
in Indonesia. You will find a copy of their press release below.
The report has been described as devastating, many of the findings
confirm what we have been saying for years. It seems to be the
first time that Nike admits that violations are occuring at this
scale and magnitude.
Next to health and safety issues this time overtime and wage issues
are also adressed (in contrast to earliers global alliance studies,
see the CCC website for
a critique of the Thailand report and of the global alliance's
mission).
On the subject of relations with management and representation
however, the report concludes that 73.4 percent were satifisied
about their work relationship with direct supervisors, 67.8 percent
with factory management and 77 percent with labor unions. This is
in contrast with the information we receive from workers organisations
in Indonesia, and in fact hardly believable.
Key question of course is what will Nike do with the findings.
The same day, Nike also issued a press release, announcing they
find the conclusions disturbing and that "no worker should
be subject to some of the working conditions reported in this asessment".
They have also drawn up a remediation plan, some brief details of
which are added to the press release. The most glaring point in
the remediation plan concerns the wages: The global alliance reports
that "Over half the workers in the focus groups said that basic
monthly salaries are not adequate to meet workers' increasing cost
of living". Nike, in its remediatioin plan however only talks
about verifying through independent audits that all factories have
fully implemented the new minimum wage, are paying the required
wage, and that workers clearly understand the wage calculation and
compensation structure".
We will try to make a more complete analysis soon, in the meantime
all the documents including the 106 page global alliance study can
be found at Nike's website, http://www.nikebiz.com/labor
Groundbreaking Study by Global Alliance Reveals Advances, Challenges
Continue in Global Manufacturing Thousands of Workers in Indonesia
Respond to Survey with Concerns, Hopes for the Future
BALTIMORE, MD (February 22, 2001)
– An alliance of public, private and not-for-profit organizations
designed to improve opportunities for factory workers has released
the findings of a comprehensive and insightful study of workers'
needs and aspirations in Indonesian factories. The study, entitled
"Workers' Voices: An Interim Report on Workers' Needs and Aspirations
in Nine Nike Contract Factories in Indonesia" is the result
of an intensive interviewing and focus group process involving more
than 4,450 workers at nine Nike contract factories. Workers were
asked – many for the first time – for their views on a
wide range of topics, such as workplace conditions, family life,
health concerns, and their aspirations for the future.
The report was released today by the Global Alliance for Workers
and Communities, a partnership of non-profit, public and corporate
members – of which Nike is also a member. The mission of the
Global Alliance, an initiative of the Baltimore-based International
Youth Foundation, is to maximize workers' potential and to improve
their lives, both at work and in their communities.
"This is a significant first step toward improving the lives
and prospects of tens of thousands of workers in Indonesia,"
said Rick Little, chairman of the Global Alliance Operating Council.
"With this report, we have deepened our understanding of the
everyday lives of these workers, both in terms of their aspirations
for the future, and some very real concerns in the workplace including
harassment and health issues. The next step in this process will
be to work with our corporate partners, factory managers, trade
unions, local NGOs and workers themselves to design and deliver
programs that are directly responsive to the needs the workers have
identified."
"Nike and the contract factories themselves should be commended
for their decision to voluntarily open themselves up to this level
of public scrutiny," Little said. "They provided unprecedented
access and transparency so that the Global Alliance could properly
conduct confidential conversations with thousands of their workers."
The in-depth assessment process, conducted by the Center for Societal
Development Studies at the Atma Jaya Catholic University in Jakarta,
Indonesia, involved one-on-one interviews, surveys and focus groups
with workers. This is the first phase of the Global Alliance's worker
assessment and development initiative in Indonesia. The results
of this assessment process are used to design and deliver programs
that address the needs and aspirations identified by the workers
themselves, including helping them develop the skills and resources
to achieve their goals and improve their daily experience in the
workplace. Each of the nine Nike contract factories in Indonesia,
which in total employ about 54,000 workers, voluntarily agreed to
participate in the Global Alliance program.
Some of the key findings about workplace issues and aspirations
from the study at nine Nike contract factories are as follows:
Workplace Issues
While the majority of workers said they were satisfied with the
health facilities at their factory, more than 45 percent were not
satisfied. Workers had a number of serious complaints about healthcare
clinics and the difficulties of obtaining adequate medicines and
gaining permission to go to the factory clinic and to take sick
leave. Sixty to 90 percent of focus group respondents in all nine
factories reported that the procedures to obtain permission of sick
leave and/or access to medical care are very difficult. In several
cases, workers reported collapsing before their supervisors would
grant access to the clinic. A small number of workers (six) reported
two incidents of worker deaths in two separate factories. Those
surveyed had heard that the workers involved had been ill and were
denied sick leave and medical attention. Worker focus groups, however,
indicated these deaths occurred outside of the factories and Nike
has conducted an investigation of the circumstances that can be
obtained from them directly.
Workers in all nine factories reported experiencing or observing
various forms of harassment and abuse. Verbal abuse, such as swearing
or yelling, was the most frequently reported complaint, with 30
percent of respondents reporting personally experiencing such abuse.
Nearly 8 percent of workers reported receiving unwanted sexual comments
and nearly 2.5 percent said they have received unwanted sexual touching.
Workers' reports of physical abuse from a line supervisor or manager,
such as throwing objects, hitting, pushing, or shoving, ranged from
a low of one percent in one factory to almost 14 percent in another.
Workers also reported deeply disturbing incidents of sexual favors
for employment practices at two factories. These reports have not
been verified and subsequent focus group discussions also have not
confirmed these reports. Nike has conducted an investigation of
the circumstances that can be obtained from them directly. Many
of the female workers expressed interest in learning more about
reproductive health and other womens' health issues. Several workers
reported not fully understanding issues related to pregnancy and
prevention. Others said they hide their pregnancy as long as possible
to avoid some of the economic disincentives that come with pregnancy
(i.e. restrictions on overtime hours, being assigned lighter jobs
with less opportunities to earn bonuses).
While workers at all nine factories reported that they received
salaries that were above the regional minimum wage, wages remain
a top concern of workers. Over half the workers in the focus groups
said that basic monthly salaries are not adequate to meet workers'
increasing cost of living. Women reportedly receive slightly lower
salaries on average, often because women do not receive the same
"head of household" tax deductions and allowances as men
and they hold different positions within the factory. When asked
about the level of satisfaction workers felt about their work relationships,
93.1 percent said they were satisfied with work relationships with
co-workers, compared with 73.4 percent with direct supervisors,
67.8 percent with factory management and 77 percent with labor unions.
A correlation was found between workers who reported having experienced
harassment and their having lower levels of satisfaction with relationships
with direct supervisors and managers. In focus group discussions,
workers reported that harsh words or verbal abuse are considered
a normal part of these relationships. Therefore even workers who
report verbal abuse may be satisfied with these relationships. The
study found that 75.4 percent of workers say they are comfortable
sharing ideas or suggestions with their line supervisors, while
43.5 percent said that their supervisors are only sometimes willing
to listen to their ideas or suggestions.
Aspirations Over ninety-five percent of workers would like to
learn how to plan for their future, manage personal finances, and
learn more about how to be good parents and provide for their children.
The workers have high hopes for their children's educational and
career future. Although few of the workers have ever attended a
university themselves, 87 percent would like their children to obtain
a university education and hope they will be able to get better
jobs. Almost half the workers expressed interest in enhancing their
general education, as well as improving both their work-related
and non job-related skills. Work-related job skills include learning
effective communication, work safety and new factory technology.
When it comes to enhancing non job-related skills, workers expressed
the most interest in skills related to computers, sewing, cooking,
handicraft production and small-scale business. About 31 percent
of the workers said they want to start a small business.
Workers also expressed interest in working on projects to improve
their communities, from planting trees to supporting religious activities
to assisting their poorest neighbors.
"While very troubling workplace issues have been raised, we
have concluded that Nike has acted in good faith throughout the
assessment process, and has developed a serious and reasonable remediation
plan to respond to the findings," said Little. "They also
have committed to release a public report on their progress against
this plan and a follow-up study will be conducted by the Global
Alliance in12 months with these same Nike contract factories."
"We believe this report provides a benchmark from which Nike
can measure progress and ensure accountability. The result will
be improved conditions and enhanced learning opportunities for workers
and their families," Little said.
This report is the third in a series, following earlier worker
needs assessment reports commissioned by the Global Alliance in
Thailand and Vietnam. The earlier reports involved five Nike contract
factories in Thailand and seven contract factories in Vietnam. With
this Indonesian report, the Global Alliance has now assessed the
aspirations and needs of workers in 21 of the more than 700 contract
factories in Nike's supply network. These factories involve approximately
20 percent of the workers engaged in making products for Nike worldwide.
The Global Alliance hopes that this report contributes to a greater
understanding about workers and the global supply chain in Indonesia
and elsewhere and brings us closer to our goal of improving their
workplace experiences and opportunities.
Copies of the full Global Alliance Indonesia report, which includes
a statement from the Global Alliance, the detailed assessment results,
and Nike's remediation plan, can be obtained from the Global Alliance
for Workers and Communities by going to the organization's website
at http://www.theglobalalliance.org.
A Bhasa Indonesia summary of the report and this release will be
available on Friday, February 23.
The Global Alliance for Workers and Communities was launched in
April 1999 to improve the workplace experiences and life opportunities
for workers in developing countries. A public/private partnership
of foundations, global companies and international institutions,
the Global Alliance places particular emphasis on reaching young
adults workers involved in global production and service supply
chains. Members of the Global Alliance include Nike, Gap, Inc.,
and the World Bank. The Alliance also receives support from Penn
State and St. John's University, as well as private foundations.
The long-term goal is to develop practical, sustainable multi-sector
partnerships to enhance workers' lives.
Clean Clothes Campaign
PO Box 11584
1001 GN Amsterdam
The Netherlands
tel: + 31 20 4122785
fax: + 31 20 4122786
e-mail:info@cleanclothes.org
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