Reebok admits problems at Indonesian factories

By Tom Kirchofer, Associated Press, 10/18/99 17:04

BOSTON (AP) Reebok International Ltd. is blowing the whistle on itself for poor working conditions at two of its factories in Indonesia.

The athletic shoe company, which gives out annual human rights awards, said
an independent study found health and safety problems. It also said that
many workers didn't understand their rights or workplace policies and that
women aren't getting adequate opportunities for advancement.

Some workers suffered rashes from harsh chemicals, and pregnant women had to
stand or sit on uncomfortable stools with no back support. The women also
had to work around chemicals that could cause nausea and vomiting.

Stoughton-based Reebok said it ordered the report in an effort to improve
working conditions at its factories around the world.

''We hope that this will also break through and encourage more companies to
do something like this,'' said Sharon Cohen, executive vice president for
human rights. ''We have nothing to hide.''

Reebok paid $35,000 for the report, which led to more than $500,000 in
factory improvements by the two subcontractors. The company owns none of its
own factories, relying instead on a network of subcontractors. Reebok is
supplied by five factories in Indonesia, and it also buys products made in
China, Thailand, Vietnam and Brazil.

Human rights activists have long worried about labor conditions in
developing countries that make American clothing. Nike has come under attack
for alleged abuses at its shoe factories. Activists have also charged that
Kathi Lee Gifford's clothing line is produced in sweatshops.

Medea Benjamin, a spokeswoman for the San Francisco-based labor rights group
Global Exchange, said Reebok's report was more thorough and candid than a
1997 Nike report on alleged abuses at its foreign factories.

''That's what we've been asking the companies to do, be honest, be open and
be public. I think it's great that Reebok did this,'' Ms. Benjamin said.

Although the Nike report on Vietnamese factory conditions was conducted by
former U.N. Ambassador Andrew Young, workers' rights advocates called the
investigation a sham and a guided tour.

The Reebok report was prepared after a 14-month study of the factories by
Insan Hitawasana Sejahtera, a Jakarta consulting firm. Researchers reviewed
factory records, conducted surveys and confidential interviews, observed
working procedures and inspected factories.

The study noted that workers at two Jakarta-area factories, run by the firms
PT Dong Joe Indonesia and PT Tong Yang Indonesia, frequently were not fully
informed about policies regarding wages, overtime and promotions. Although
women made up more than 80 percent of the work force, they were far less
likely to hold supervisory positions.

David Schilling of the Interfaith Center on Corporate Responsibility in New
York approved of Reebok's actions, but said he would have liked to see the
report focus more on how the employees' union allowed workers to remain
ignorant of so many important issues.

''I would have hoped there would have been a greater examination on the
right to freely associate in the workplace,'' Schilling said.

Doug Cahn, vice president of Reebok human rights programs, said in a phone
interview from Indonesia that management at the two factories was
comfortable with the criticism and looking forward to implementing the changes.

''They were already good factories,'' Cahn said. ''They have become better
factories.''