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Nike promises to remedy problems

| Source: AP

Nike promises to remedy problems

PORTLAND, Oregon (AP): Workers at nine of Nike's contract
factories in Indonesia have witnessed verbal and physical abuse
by supervisors against co-workers, and female employees being
coerced into sex, according to a report released by a nonprofit
watchdog group.

Employees also complained of being forced to work overtime,
seeing assembly-line workers fondled by managers and having
access to medical care restricted, the report by Global Alliance
released Wednesday found.

Nike, which paid for the report, acknowledged that the
findings were "disturbing," but said it welcomed the chance to
improve conditions at the 25 Indonesian factories from which it
buys products.

"Of course, many of the results are disturbing, but that's
exactly what we wanted to find out," said Maria Eitel, Nike's
vice president and senior adviser for corporate responsibility.
"While the messages are tough, we welcome them."

Global Exchange, a San Francisco-based human rights group,
credited Nike for releasing the findings.

"I find the conclusions surprising," said Jason Mark, a
spokesman for Global Exchange. "I think it demonstrates a
welcomed candor, but the question is what Nike will do with this
information."

Researchers from Global Alliance conducted hour-long
interviews with 4,004 workers - 6 percent of the work force at
the nine factories chosen - for the report. Subjects were chosen
at random, and the interviews were unsupervised by factory
officials, said Rick Little, chairman of Global Alliance.

The Global Alliance, formed in 1999, is a consortium of groups
and companies -- including the World Bank, Nike and The Gap, a
major U.S. clothing retail chain -- committed to improving the
professional and personal lives of factory workers, especially
women, across Asia.

Of the workers surveyed in the latest report, 56 percent said
they had seen supervisors verbally abusing co-workers. And 15.7
percent reported observing improper sexual touching. Another 13.7
percent said they saw physical abuse.

Workers reported seeing others punished for being late by
making them clean toilets or run around the factory grounds.
Others allege that the deaths of two workers were related to the
denial of medication.

Most factories have on-site health clinics, but nearly 90
percent of workers surveyed said medication wasn't always
available, and others complained that it was difficult to get
time off to go to the clinics.

Working conditions at overseas factories have been a
consistent public relations problem for the Beaverton, Oregon-
based athletic shoe and apparel giant.

Nike paid for the latest report with a US$7.8 million grant.

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