Aprisindo opposes Nike's labor charge

Aprisindo opposes Nike's labor charge

JAKARTA (JP): Indonesian Footwear Manufacturers' Association
(Aprisindo) contested yesterday U.S. shoe giant Nike Inc's reason
behind the termination of contracts with its four Indonesian
partners.

Association chairman, Anton. J. Supit, said the decision to
terminate Nike's contracts with the four Indonesian companies was
made as part of the American shoe giant's budget revision.

"The termination was originally based on Nike's budget
revision and not because the Indonesian firms had failed to meet
the company's requirement to increase wages. It's not right. I
oppose the statement," Anton told The Jakarta Post.

He said the termination of job contracts was usual practice in
the garment and footwear industry but said he wanted to seek a
further explanation from Nike about the issue.

Nike Inc. severed ties with four Indonesian-based factories
because they failed to adhere to the company's requirements for
wages and working conditions, Reuters reported Monday.

The announcement came as a workers' rights group accused Nike
of contracting with companies in China that use child labor.
In a lengthy statement, Nike challenged the allegations made
about four Chinese subcontracted factories by a group called
Global Exchange.

"The report incorrectly states the wages earned by workers,
makes irresponsible accusations about workers' health and safety
and is just plain wrong in its assertion that Nike's Code of
Conduct is not made available to workers," said Nike's director
of labor practices, Dusty Kidd.

"These are not new issues," Nike chairman Phil Knight told
shareholders. "We try to be good citizens and operate as good a
factory as we can."

Separately, Nike President Tom Clarke confirmed the company's
growth rate would slow down in the current fiscal year,
reflecting weaker U.S. footwear sales.

Sources in Jakarta said the four Indonesian companies became
Nike subcontractors early this year. The companies included PT
Prima Inreksa, PT Kukje Adetex, PT Prima Cipta Kreasi and PT
Indomulti Inti. Total capacity of the companies is estimated to
reach 800,000 pairs per month.

Nike officials said the shoe giant might sign a new contract
next year if the Indonesian companies meet the wage requirement.

The American company said it chose to end its relationship
with the Indonesian firms because they failed to comply with
Nike's standards for overtime and physical environment.

The shoe giant said at one of the factories the average work
week was 60 to 70 hours. (icn)