Nike: American dream on RI sweat<\/p>\n
By Donna K. Woodward<\/p>\n
MEDAN (JP): Once again Nike is in the news for its employee
\nrelations philosophy and local compensation schemes. Nike
\nIndonesia's Manager Tony Naya responded in this paper to Jim
\nKeady's campaign against Nike for its treatment of its Indonesian
\nworkers.<\/p>\n
I respect Keady's experiment in trying to put himself in the
\nshoes (as it were) of the Nike workers by living for a month on
\nwhat Nike pays them. But it is Naya who does the disservice to
\nreaders, by failing to address the issue illustrated so sharply
\nby Keady: Rp 10,000 (about US$1.20) per day is simply not a
\nliving wage for a human being.<\/p>\n
Naya seemed to suggest that Keady hadn't been candid about his
\nstatus as a plaintiff in a lawsuit against Nike, whereas in fact
\nthis was made clear in the Sept. 5 news article on Nike workers.<\/p>\n
Naya also claimed that because Keady came here with the stated
\npurpose of exposing the poor condition of Nike's contract
\nworkers, his findings of exploitation are suspect. Naya, though,
\noffered no argument to this point. The Sept. 5 article did not
\nsound like a contention by Keady that Nike contributed nothing at
\nall to workers.<\/p>\n
Yet Naya's rebuttal to Keady was simply a recital of Nike's
\ngood works in Indonesia. Naya did not dispute Keady's message.
\nThe message is that to enjoy even a marginally acceptable
\nstandard of living (i.e. one that at the very least affords a
\nperson a nutritious diet, shelter from bad weather and crime,
\nadequate personal hygiene, basic medical care, the ability to
\nachieve literacy and educate one's children), a person needs to
\nearn more than Rp 10,000 per day.<\/p>\n
Those who are fortunate enough to work for large, prosperous,
\nexport-oriented multinationals like Nike should expect to enjoy a
\nliving wage. Shouldn't this modest principle be fundamental to
\nIndonesia's foreign investment policy-namely, that foreign
\ninvestment companies pay a meaningful minimum wage to their
\nemployees?<\/p>\n
In his letter Naya explained that Nike contractors raised
\nwages \"... while being sensitive to local economic conditions.\"
\nNonsense. This is euphemism. This so-called \"local sensitivity\"
\nis a hypocritical hoax with which multinational corporations try
\nto convince themselves and fool developing countries into
\nbelieving that the low wages they pay Third World workers are
\nmorally justified.<\/p>\n
Why is it acceptable to pay Indonesian landlords astronomical
\nU.S.-dollar rents that spoil the housing market for local
\nresidents, yet not acceptable to pay the real creators of wealth,
\nIndonesian workers, what they deserve?<\/p>\n
Why is it acceptable to pay lower-level laborers local wages
\nfor manufacturing products that will be sold overseas at
\ninternational market prices? In the United States, Indonesian-
\nmade rattan furniture or garments are not inexpensive.<\/p>\n
Similarly, if shopping in the U.S. or in Singapore one can
\nexpect to pay at least US$90 for medium-quality Nike sport shoes;
\nproducts made in Indonesia aren't discounted. To whom do all
\nthose profits go? According to recent news someone is spending a
\nlot of money these days on imported luxury cars; it's not Nike's
\ncontract workers.<\/p>\n
Couldn't the division of corporate profits be more equitable?
\nThis is the point of Keady's personal protest. More fairness for
\nthe workers who create the wealth with which Nike pays its
\nsuperstar athletes tens of millions of dollars per year, and its
\nIndonesian contract workers less than $1,000 per year.<\/p>\n
My support of Keady's position is not an argument for paying
\nall local workers the same rates their overseas counterparts are
\npaid; wage issues are too numerous and complex to be addressed
\nhere.<\/p>\n
The usual suspects like Henry Kissinger (who probably has
\nnever even had to handle a mere Rp 10,000 banknote) will claim
\nthat Indonesia and other developing countries would lose their
\ninvestment appeal if workers' wages rise too much.<\/p>\n
An analogous argument against raising wages has been used by
\nbusiness owners since the industrial age began. That logic was
\nproved erroneous in the early days of the labor movement and it
\nis still not valid.<\/p>\n
With globalization already on the horizon, the arguments for
\nEast-West or North-South wage gaps are even less defensible.
\nTraditional economic theories and development models -- those
\nthat developing nations still seem seduced by -- created great
\nwealth for a small number and provided rather enough to the
\nmasses to prevent revolution.<\/p>\n
These are not the only choices. There are development options
\nto choose from which fall somewhere between Fidel Castro's and
\nthe IMF's.<\/p>\n
If Nike believes its own public relations, perhaps Naya will
\naccept this invitation to disclose via this newspaper Nike's
\ntotal annual 1999 wage bill for Indonesia's 110,000 workers.<\/p>\n
To give us a clearer picture of workers' real situations,
\nreport non-wage benefits separately; include 13th month salaries
\nbut don't factor in things like free lunches, hospital insurance,
\netc.<\/p>\n
Then for comparison report Nike's worldwide 1999 pre-tax
\nprofits; the total value of its Indonesian exports; and the total
\namount Nike disbursed to its promotional sports stars in 1999.
\nGive us a true picture of how much Nike values the contribution
\nof its Indonesian workers.<\/p>\n
Then, as further evidence of Nike's good faith, Naya might
\ntake the initiative from Keady and himself invite Tiger and Magic
\nand other Nike athletes to spend an all-expense paid week, with
\nKeady as their guide, visiting Nike's contract workers in their
\nkampongs. How about it, Mr. Naya?<\/p>\n
The writer is an attorney and former American diplomat at the
\nU.S. Consulate General in Medan, is president director of PT Far
\nHorizons management consultancy firm.<\/p>",
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