Tuesday, October 19, 1999

A report on two Indonesian factories hired by sneaker maker Reebok International Ltd., though welcome, fell far short, critics said yesterday, noting the study examined only two of hundreds of shops Reebok hires.

Others said the changes made to correct the conditions amounted to window dressing and fail to get at fundamentally unfair wages, a problem for most American shoe makers that contract with overseas operations.

Michael Posner, executive director of the Lawyers Committee for Human Rights, said the report, produced for Reebok, should be a model for others. But, he added, it doesn't go far enough.

Posner said researchers only looked at two factories out of the hundreds Reebok relies on to produce its footwear. And he said the entire industry needs to be independently audited. Reebok's audit ``is not going to be replicated very often by this company or any other until there's a broader framework across the industry with some independent means of evaluation,'' he said.

While Reebok trumpeted the report's findings and the resulting corrective actions, some critics weren't satisfied. ``They (Reebok) haven't forced their contractors to sit down with workers in a dignified manner and work out problems,'' said Jeff Ballinger, director of Press for Change, which monitors Asian labor conditions. Ballinger said the report appears to be more about public relations and marketing.

He said Reebok and other companies tout nominal pay hikes to Indonesian workers, but after adjusting for inflation and currency exchange rates, real wages have plunged.

When it comes to pay, Ballinger said, many factory managers overseas fall short. ``They all have a long way to go to be treating workers with any kind of fairness in terms of wages.''

Under pressure from human rights groups, both Reebok and rival Nike have taken steps recently to burnish their images when it comes to overseas working conditions. Some human rights activists praised Reebok's effort yesterday.

Researchers who produced yesterday's report, from Hitawasana Sejahtera, documented conditions at two Indonesian footwear factories, PT Dong Joe Indonesia and PT Tong Yang Indonesia. Together, the factories employ about 10,000 people and account for 75 percent of Reebok's footwear production in Indonesia.

The researchers found workers faced a long list of substandard workplace conditions. Some endured factory temperatures that were often too hot; some worked in rooms with inadequate ventilation.

Pregnant women were seen working in inappropriate conditions, including in the vicinity of harmful chemicals. Very few accidents were investigated, the report said. Chemicals were mixed in areas not safely ventilated and were sometimes kept in leaky containers.

Workers often didn't understand their union contracts or overtime policies, the report said. About 25 percent of those surveyed thought overtime work was obligatory.

Many workers claimed they didn't understand the term sexual harassment.

But the auditors also found that their 14-month study led to improvements in ventilation systems, chemical handling procedures, training and the explanation of overtime policies, the report said.

Reebok in Indonesia

Reebok International Ltd. wants to be known as the leader in promoting human rights and good working conditions in factories in developing nations. But a $35,000, 14-month audit that Reebok commissioned of two factories it contracts with in Indonesia found significant problems. Reebok says it has already spent over $500,000 on correcting problems. Some highlights of the report:

Wages and benefits

Workers didn't understand wage statements; deductions were not detailed; many did not understand overtime policy.

Many were unaware of benefits, including Social Security and health coverage.

Safety

Prevention programs deemed lacking, no health and safety departments at factories; very few accidents investigated.

Use of personal protection equipment was sporadic.

Physical hazards apparent, e.g., elevator doors opening with no car present, welding cylinders in danger of falling over; inadequate ventilation of fumes. Workers untrained in handling chemical spills; most chemicals poorly labeled or unlabeled.

Gender equity

Women were over 80 percent of work force but represented 28-33 percent of supervisors.

Each factory had fewer toilets for women, even though females outnumbered males by more than 4-to-1.

Pregnant women

Seen doing inappropriate work with solvents, standing for long periods, using stools without back rests.

Conducted by Insan Hitawasana Sejahtera, a consulting firm. It reviewed factory records, conducted confidential interviews and observed working procedures at the two factories, which employ about 10,000 people and account for over 75 percent of Reebok's footwear production in Indonesia.