Nike workers earn enough, research findings say

Nike workers earn enough, research findings say

PORTLAND, Oregon (AP): Preliminary research findings from Dartmouth College show that workers at Nike factories in Indonesia and Vietnam earn enough to meet their basic needs with money left over for discretionary spending or savings.

The study, paid for by Nike, is the latest effort by the company to fend off persistent accusations of inhumane and unjust working conditions in factories in developing nations that produce its athletic shoes and apparel.

"The data suggests Nike workers in Indonesia and Vietnam can more than make ends meet," said Eugene Mihaly, who co-supervised the study by a faculty-student team from Dartmouth's Amos Tuck School of Business.

Mihaly's comments Thursday came ahead of a series of international anti-Nike demonstrations planned for Saturday in 50 U.S. cities and 11 other countries.

A leading Nike critic said the study was simply another public relations move by the company in the face of continued criticism of factory conditions that produce products under contract with the Beaverton-based company, the world's largest athletic shoe manufacturer.

"If they would just spend another 75 cents for a pair of shoes on labor costs all these troubles would be solved," said Jeff Ballinger, director of Press for Change, a group for labor issues in developing nations.

"They are trying to spin their way out of it by saying they are paying above subsistence level," he said. "I don't think that when they are plunking down 75 dollars for a pair of shoes, people are going to be satisfied with that."

The study found that the average monthly wage for workers at its Sam Yang and Chang Shin factories in the Dong Nai province of Vietnam is US$47 and $56, respectively. After monthly expenses of $27 for food, clothing and other essentials, the workers have $19 to $26 for discretionary spending or savings, the study said.

According to the study, the monthly minimum wage is $35 in Dong Nai, where the Chang Shin factory is located and $45 in Cu Chi, where the Sam Yang factory is located.

The research found that the annual per capita income of Nike workers at its two Vietnamese factories ranged from $545 to $566, compared with the estimated annual per capita wage of $250 to $300 for the country as a whole.

In Indonesia, where there are stricter wage and benefit laws, workers at Nike factories earned an average $96 per month.

This includes overtime, in some cases mandatory. The mandated minimum wage in Indonesia is $66 per month.

Nike said the study was conducted over several weeks using household interviews and questionnaires distributed to Nike and non-Nike factory workers. The cost-of-living figures were determined by surveys of local food markets and purchasing patterns.

"Nike has created 500,000 highly desired, good-paying jobs in 32 countries including Vietnam and Indonesia," said Nike President Tom Clarke. "Every job vacancy attracts hundreds of people seeking a job in a Nike contract factory."