U.S. labor advocacy group denounces Nike's practices

U.S. labor advocacy group denounces Nike's practices

CHICAGO (UPI): A U.S. labor advocacy group said yesterday it
plans to push ahead with a campaign against athletic apparel
giant Nike, which it claims employs grossly underpaid Indonesian
children to make its shoes.

Made in the USA, a Washington D.C. advocacy group that says it
represents the interests of all American workers, hopes to
persuade basketball star and Nike spokesman Michael Jordan to
intercede with the company.

Jordan, who has gained global fame at least partially because
of his association with Nike, is currently participating in the
NBA Finals with the Chicago Bulls. He has not commented on the
matter.

Made in the USA initiated its campaign in 1992 with letters to
Jordan and Nike Chairman Phillip Knight, requesting that the
company move its plants back to American shores. The issue made
brief headlines but disappeared until now.

Made in the USA Chairman Joel Joseph denied he was attempting
to take advantage of the media hype surrounding the Nba Finals
and said the matter resurfaced when a reporter called him.

"We're just asking them to make their top-of-the-line shoes
here," Joseph said. "Their response was that if they made their
shoes in the United States they would have to raise their
prices."

Many of Nike's shoes go for more than US$100 a pair, including
the popular Air Jordans. Jospeh said Nike's production costs are
around US$5 a pair.

"We think there's a little room in there for" movement, he
said.

Nike released a statement yesterday saying the allegations
were "completely false and irresponsible," and noted that Air
Jordans are made in Taiwan, not Indonesia.

"One has to question the credibility of an individual whose
organization is largely financed by labor unions opposed to free
trade with developing nations," said Nike spokeswoman Donna
Gibbs.

Nike also disputed Joseph's claim that its Asian workers make
14 cents an hour. The company earlier insisted the employees who
produce Air Jordans make about 45 cents an hour, and said
yesterday all of its foreign workers make well above national
minimum wages.

Nike subcontractors around the world must sign a Memorandum of
Understanding that "strictly prohibits child labor, and certifies
compliance with applicable government regulations regarding
minimum wage, (and) overtime," the Nike statement read.

The Beavertown, Oregon-based company said it enforces the
memorandum with daily observation by staff members.

"The average line-worker's wage in Asian subcontracted
facilities is double the government-mandated minimum," Nike said.

But Joseph insisted Nike's practices are notorious, even for
an industry known for shipping jobs overseas to save labor costs.

"They all do it to some extent (but) Nike is the biggest and
the worst offender," he said. "Wherever we pull up that rug and
see child welfare, Nike is there."

Citing talk-show host and entertainer Kathie Lee Gifford's
recent stand on the issue after she discovered her line of
clothing was made by Latin American children, Joseph said he
thinks Jordan could influence the debate.

"We want Michael Jordan to use his leverage with Nike," he
said. "Maybe other celebrities could not have that leverage, but
Michael (could)."

Jordan could at least convince Nike to make Air Jordans here,
Joseph added.

He said Made in the USA plans to capitalize on this exposure
to keep the issue in the public eye.

"We're going to push it. It seems we touched a nerve," he
said.