 Appeal
for action: Nike/PT Doson
Dear Friends,
Please find below some background information and a sample e-mail
that can be sent to Nike in relation to the situation at PT Doson
in Indonesia, prepared by the Nikewatch campaign. We urge you
to take the time right now to send a message to Nike.
NikeWatch News - September 2002
In recent weeks we have received urgent requests for support
from the 7,000 workers at the PT Doson factory in Indonesia. They
will shortly lose their jobs when Nike, the factory's only customer,
moves it orders elsewhere. Union leaders at the factory suspect
that the production is being moved to countries in which independent
unions are illegal. Not only will workers at PT Doson join the
40 million other Indonesians looking for work, but at this stage
it looks likely that they will miss out on the severance payments
which they are supposed to receive under Indonesian law.
Please consider taking two minutes to copy the letter at the
bottom of this email and email it to Nike. We need to strongly
send the message that contracting out all production should not
be a way for companies like Nike to wash their hands of the rights
of workers who make their products. Of the 757 of us on the NikeWatch
News list, only four responded to the last letter-writing request.
It would be great if we could get a much more forceful response
this time. Companies like Nike know that for every one person
who contacts them about an issue, at least one hundred are concerned
about it.
CONTENTS
1. Thousands of Nike workers
march on US embassy in Jakarta
2. Reebok cuts orders
to the PT Primarindo factory
3. Two workers shot in Indonesia
while protesting draft labour laws
4. Analysis
5. MakeTradeFair update: Disappointing outcome
to World Summit on Social
Development
6. Sample email to Nike
4. Analysis
A lot of commentators are concerned that globalisation is leading
to a "race for the bottom", with poor countries forced
to suppress workers' rights in order to compete for investment.
Nike is certainly an example of a company that has shifted production
in search of lower wages and more reliable supply. Now it looks
like its happening again. In 1996, when Indonesia was ruled by
the dictator Suharto and the only legal union was run by the government,
38% of Nike's sneakers were Indonesian-made. Since then Suharto
has fallen, Indonesia has started to become more democratic, workers
have been able to form their own unions and, this year, minimum
wages have risen significantly. In the process Indonesia's share
of Nike's sportshoe production has fallen to 30%, and according
to the Wall Street Journal it looks set to go as low as 26% next
month, when Nike ceases ordering from the PT Doson. More than
half of Nike's sportshoe production currently occurs in countries
in which workers can be imprisoned or sent to forced labour camps
if they try to form independent, democratic unions. Oxfam Community
Aid Abroad recently wrote to Nike asking whether the decision
to cease ordering from PT Doson will result in more of Nike's
sportshoes being sourced in such countries. Nike's response avoided
directly answering the question.
Unfortunately Nike is not alone. The Wall Street Journal reported
on September 9 that the Korean Chamber of Commerce in Jakarta
recently warned of a large-scale emigration of Korean businesses
from Indonesia as a result of increases in the Indonesian minimum
wage. Reebok also seems to be reducing its presence in Indonesia.
The Indonesian government's draft new labour laws seem to be an
attempt to prevent this investment flight.
The international Nike campaign has reached an interesting stage.
Nike has been willing to support workers' rights in particular
factories, such as the Mexmode factory in Mexico. The company
is also involved in the Fair Labor Association (FLA) which, while
still far from adequate, has taken a number of steps toward becoming
a more credible system for monitoring factory conditions. Unfortunately
Nike's stated willingness to respect workers' rights is contradicted
by its decision to source so much of its production in countries
where it is illegal to form independent unions. If we want the
world to become more democratic and we want to buy goods made
in decent conditions, then we need to build a much larger movement
of consumers and citizens who care about these issues and are
willing to act on their beliefs. By participating in this list
and responding to workers' requests for letter-writing support,
you are making yourself part of the solution.
5. MakeTradeFair update: Disappointing outcome to World Summit
on Social Development
After nine days of bluster, the world gets some gains on a few
environmental issues, and on sanitation for the poor. But over
all the outcome is feeble -a triumph for greed and self-interest,
a tragedy for poor people and the environment.
Who's to blame? Oxfam International points the finger straight
at the world's leaders. "Most of them lacked the guts and
will to achieve a brave and far-reaching agreement that might
have effectively tackled the problems of poverty and the decaying
environment. It was within their grasp," said Andrew Hewett
of Oxfam International.
For more detail see:
www.maketradefair.com/stylesheet.asp?file=19062002155044
6. Sample letter to Nike:
Please copy the letter below, email it to
timc@sydney.caa.org.au.
we will take care that these letters will reach Maria Eitel
Maria Eitel,
Vice-President for Corporate Responsibility
Nike Inc.
Dear Maria,
I am writing to bring your attention to the plight of workers
at the PT Doson factory in Indonesia. I understand that in October
this year all 7,000 workers from the factory will lose their jobs
as a result of Nike cutting its orders to the factory. I understand
that although Nike is willing to provide some support for those
workers, your company is not willing to take responsibility for
ensuring that they receive their full legal entitlements.
I also understand that Nike has so far not been willing to say
whether this decision will result in more of Nike's production
moving to countries where workers can be imprisoned or sent to
forced labour camps for attempting to assert their right to form
independent, democratic unions. In this context I am particularly
disappointed that Nike is effectively shutting down a factory
where most of the workers are union members.
I urge your company to change its mind, and to continue placing
orders at PT Doson. If you do not do so, at the very least Nike
should ensure that they receive all their legal entitlements.
Nike's decision to contract out all its production should not
be a means of escaping responsibility for making sure that workers'
legal rights are met, particularly in factories where Nike is
the only buyer.
Sincerely,
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