Aprisindo opposes Nike's labor charge<\/p>\n
JAKARTA (JP): Indonesian Footwear Manufacturers' Association
\n(Aprisindo) contested yesterday U.S. shoe giant Nike Inc's reason
\nbehind the termination of contracts with its four Indonesian
\npartners.<\/p>\n
Association chairman, Anton. J. Supit, said the decision to
\nterminate Nike's contracts with the four Indonesian companies was
\nmade as part of the American shoe giant's budget revision.<\/p>\n
"The termination was originally based on Nike's budget
\nrevision and not because the Indonesian firms had failed to meet
\nthe company's requirement to increase wages. It's not right. I
\noppose the statement," Anton told The Jakarta Post.<\/p>\n
He said the termination of job contracts was usual practice in
\nthe garment and footwear industry but said he wanted to seek a
\nfurther explanation from Nike about the issue.<\/p>\n
Nike Inc. severed ties with four Indonesian-based factories
\nbecause they failed to adhere to the company's requirements for
\nwages and working conditions, Reuters reported Monday.<\/p>\n
The announcement came as a workers' rights group accused Nike
\nof contracting with companies in China that use child labor.
\nIn a lengthy statement, Nike challenged the allegations made
\nabout four Chinese subcontracted factories by a group called
\nGlobal Exchange.<\/p>\n
"The report incorrectly states the wages earned by workers,
\nmakes irresponsible accusations about workers' health and safety
\nand is just plain wrong in its assertion that Nike's Code of
\nConduct is not made available to workers," said Nike's director
\nof labor practices, Dusty Kidd.<\/p>\n
"These are not new issues," Nike chairman Phil Knight told
\nshareholders. "We try to be good citizens and operate as good a
\nfactory as we can."<\/p>\n
Separately, Nike President Tom Clarke confirmed the company's
\ngrowth rate would slow down in the current fiscal year,
\nreflecting weaker U.S. footwear sales.<\/p>\n
Sources in Jakarta said the four Indonesian companies became
\nNike subcontractors early this year. The companies included PT
\nPrima Inreksa, PT Kukje Adetex, PT Prima Cipta Kreasi and PT
\nIndomulti Inti. Total capacity of the companies is estimated to
\nreach 800,000 pairs per month.<\/p>\n
Nike officials said the shoe giant might sign a new contract
\nnext year if the Indonesian companies meet the wage requirement.<\/p>\n
The American company said it chose to end its relationship
\nwith the Indonesian firms because they failed to comply with
\nNike's standards for overtime and physical environment.<\/p>\n
The shoe giant said at one of the factories the average work
\nweek was 60 to 70 hours. (icn)<\/p>",
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