Nike workers earn enough, research findings say<\/p>\n
PORTLAND, Oregon (AP): Preliminary research findings from
\nDartmouth College show that workers at Nike factories in
\nIndonesia and Vietnam earn enough to meet their basic needs with
\nmoney left over for discretionary spending or savings.<\/p>\n
The study, paid for by Nike, is the latest effort by the
\ncompany to fend off persistent accusations of inhumane and unjust
\nworking conditions in factories in developing nations that
\nproduce its athletic shoes and apparel.<\/p>\n
"The data suggests Nike workers in Indonesia and Vietnam can
\nmore than make ends meet," said Eugene Mihaly, who co-supervised
\nthe study by a faculty-student team from Dartmouth's Amos Tuck
\nSchool of Business.<\/p>\n
Mihaly's comments Thursday came ahead of a series of
\ninternational anti-Nike demonstrations planned for Saturday in 50
\nU.S. cities and 11 other countries.<\/p>\n
A leading Nike critic said the study was simply another public
\nrelations move by the company in the face of continued criticism
\nof factory conditions that produce products under contract with
\nthe Beaverton-based company, the world's largest athletic shoe
\nmanufacturer.<\/p>\n
"If they would just spend another 75 cents for a pair of shoes
\non labor costs all these troubles would be solved," said Jeff
\nBallinger, director of Press for Change, a group for labor issues
\nin developing nations.<\/p>\n
"They are trying to spin their way out of it by saying they
\nare paying above subsistence level," he said. "I don't think that
\nwhen they are plunking down 75 dollars for a pair of shoes,
\npeople are going to be satisfied with that."<\/p>\n
The study found that the average monthly wage for workers at
\nits Sam Yang and Chang Shin factories in the Dong Nai province of
\nVietnam is US$47 and $56, respectively. After monthly expenses of
\n$27 for food, clothing and other essentials, the workers have $19
\nto $26 for discretionary spending or savings, the study said.<\/p>\n
According to the study, the monthly minimum wage is $35 in
\nDong Nai, where the Chang Shin factory is located and $45 in Cu
\nChi, where the Sam Yang factory is located.<\/p>\n
The research found that the annual per capita income of Nike
\nworkers at its two Vietnamese factories ranged from $545 to $566,
\ncompared with the estimated annual per capita wage of $250 to
\n$300 for the country as a whole.<\/p>\n
In Indonesia, where there are stricter wage and benefit laws,
\nworkers at Nike factories earned an average $96 per month.<\/p>\n
This includes overtime, in some cases mandatory. The mandated
\nminimum wage in Indonesia is $66 per month.<\/p>\n
Nike said the study was conducted over several weeks using
\nhousehold interviews and questionnaires distributed to Nike and
\nnon-Nike factory workers. The cost-of-living figures were
\ndetermined by surveys of local food markets and purchasing
\npatterns.<\/p>\n
"Nike has created 500,000 highly desired, good-paying jobs in
\n32 countries including Vietnam and Indonesia," said Nike
\nPresident Tom Clarke. "Every job vacancy attracts hundreds of
\npeople seeking a job in a Nike contract factory."<\/p>",
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