Nike clarifies

I am writing in response to an article published in The Jakarta Post on April 25. The article, Workers still in search of adequate attention, includes factual inaccuracies and fails to include a number of key points related to Nike's presence in Indonesia.

Nike has a long and valued relationship with the people and country of Indonesia. As a customer of many contract factories which together employ over 100,000 workers, Nike is proud to contribute to the creation of valued jobs for Indonesian citizens.

As a concerned and responsible customer, Nike works with companies that manufacture our products to continuously improve the environment for people who work in these factories. Unfortunately, numerous inaccuracies in the article may result in your readers being misinformed on this topic. The following information should help to set the record straight. * Nike is not a manufacturing company. Nike is a company that specializes in the design, development and marketing of high quality sports products. Nike has developed valued relationships with companies that specialize in manufacturing. It is these companies, contract manufacturers, that actually make our products.

As a partner with our contract manufacturers, Nike is committed to continuous improvement in the following areas: Compliance with Indonesia's labor laws, payment of wage levels at or above national or regional requirements and compliance with Nike's code of conduct. Nike compliance staff, along with non- governmental organizations, multilateral institutions and others continuously work with factories on these and other important issues, all of which are aimed at benefiting workers. * Recent demonstrations related to Nike's presence in Indonesia followed a difficult decision by Nike to stop working with one manufacturing company. Workers demonstrated primarily because they valued their jobs and were concerned about their future.

In fact, while Nike had no legal responsibility to the employees of PT Doson, Nike did take action for the benefit of Doson's workers. As a concerned customer, Nike strongly encouraged PT Doson to fulfill its legally mandated requirements for severance payments to displaced workers. In addition, Nike took steps to assist PT Doson workers during this transition. Nike worked with several non-governmental organizations and others to develop and deliver a series of programs to assist displaced workers during their transition. These programs included continuing medical care for workers, plus a training program to provide workers with new skills. * Nike has never stated that the company is moving production to Vietnam or China due to higher wages in Indonesia. Many factors, including customer demand for certain products, impact where Nike products are manufactured.

While Nike does not agree with a number of comments in the article, I was encouraged to see Minister Jacob's comments about the commitment to training and education for workers. Such steps will raise the level of awareness of workers on their rights and responsibilities.

JEFF DuMONT, General Manager, Nike Inc., Indonesia, Jakarta

Note: Our article says Nike is a U.S. footwear company contracting local partners to manufacture Nike products. Concerning the labor conditions within one of its local partners, the information was based on past news stories in The Jakarta Post and a study by Global Alliance.

We also obtained information on the Indonesian partner companies from the Ministry of Manpower and Transmigration and its regional offices.

--Editor