RI labor conditions improving, says Nike

RI labor conditions improving, says Nike

Reuters, New York

Athletic shoe giant Nike Inc. on Thursday welcomed an aid
agency report alleging its workers in Indonesia are overworked
and underpaid, but said it had already made improvements to shed
its sweatshop image.

"We are pleased the 'We are not Machines' report recognizes
some of the progress that has been made in these workplaces and
believe there is much work that remains to be done," Nike said in
a statement from its Beaverton, Oregon headquarters.

But it also gently chided the report by Australia-based Oxfam
Community Aid Abroad, noting it was based on just 35 interviews
with Nike workers in Indonesia, while the athletic shoe maker was
working with an independent body that talked with 4,000
employees.

The report, "We are not Machines," released on Thursday in
Jakarta said Nike and rival Adidas Salomon AG have taken steps to
improve conditions in Indonesian factories but that employees are
still overworked and underpaid.

The companies had responded to pressure from rights groups and
aid agencies to improve working conditions, but had not done
enough, the report said.

There was no immediate response from Adidas, but in a
statement, Nike said it had received a copy of the report. "We
take any concerns raised about factories where Nike product is
produced very seriously.

"Nike is well aware of the issues raised in the report (based
on interviews with 35 workers) because we engaged in a
transparent assessment of our Indonesia operations with an
independent entity, the Global Alliance for Workers and
Communities, that involved interviews with 4,000 workers."

Nike said the Global Alliance spent 4,000 hours interviewing
4000 workers in nine factories in Indonesia and Nike has
addressed all issues of non-compliance found through that work.
The company reports every quarter to the GA on progress on all
issues raised in the "We are not Machines" report, it said.

Nike said the Global Alliance is now investing in programs
that workers have identified as critical -- health, harassment,
management/worker relations training and life skills development.