In the 1970s, Nike first produced their sneakers in South Korea and Taiwan. Workers there soon gained freedom and higher wages. Soon after, Nike went into search for cheap labor and found them in Indonesia, China, and mostly Vietnam, where labor laws were poorly enforced. There were laws in these countries that disabled them to form independent labor unions. Out of all the shoe companies, why Nike? First, many complaints were made by Nike workers and local labor groups. Second, Nike is so profitable and sells their sneakers at high prices and can afford to double the workers' wages without increasing the retail price. Third, Nike is the biggest shoe company in the world and puts itself out as an industry leader.
Nike controls 49% of the sports shoe market and employs more than 600,000 people in contract factories. Workers in Indonesia, Thailand and other countries have complained in the past of 77-hour weeks, a ban on unions and dangerous conditions in which employees have lost limbs through crush injuries.(
www.commondreams.org) Just two years ago from April 2005, Nike defended a court case where they were accused by activists of lying and making misleading claims about its working practices in a corporate and social responsibility report. The company eventually donated $2 million to the American Fair Labor Association as part of an out of court settlement.
Currently, it has published its first corporate and social responsibility report(CSR) in four years, with details of all its factories and a pledge to increase monitoring of working conditions.
