Nike clarifies

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