Nike chief falls short on pledge to labor; conditions worldwide unchanged, group says

E-mail this article Print this article

BEAVERTON, Ore. - Three years ago, Nike Chairman Phil Knight stood before the National Press Club and said he was so tired of labor-rights groups criticizing his company, he was going to personally make sure conditions improved at Nike factories around the world.

Knight has fallen short of his promises - far short, in some cases, according to a 105-page report released yesterday by the Global Exchange.

"During the last three years, Nike has continued to treat the sweatshop issue as a public-relations inconvenience rather than as a serious human-rights matter," said Leila Salazar, corporate-accountability director for the San Francisco-based labor-rights organization.

Knight discounted the report, and said Nike has done more than any other corporation in the shoe-and-clothing industry to make sure workers are treated fairly. He said the company has promoted globalization of its work force as a way to lift wages in many countries.

"I think we've made significant strides, and I'm proud of what the company's done over the last three years," Knight said.

The report by the Global Exchange cited six promises Knight made during his 1998 speech in Washington, D.C.:

• All Nike shoe factories would meet U.S. Occupational Safety and Health Administration indoor air-quality standards.

• The minimum age would be raised to 18 for Nike shoe factories, 16 for clothing factories.

• Nike would include nongovernmental organizations in factory monitoring, and the company would make inspection results public.

• Nike would expand its worker-education program.

• A micro-enterprise loan program would be expanded to benefit 4,000 families in Vietnam, Indonesia, Pakistan and Thailand.

• Research and forums on responsible business practices would be funded at four universities.

But the report concluded that "the projects Knight announced have been of little benefit to Nike workers," or "have helped only a tiny minority, or else have no relevance to Nike factories at all."

Knight and two top managers noted Nike has contracts with factories that employ at least 500,000 workers in more than 50 countries, so there are bound to be problems, including cultural differences that shape management practices.

Global Exchange agreed with Knight on one point: Nike has improved health and safety conditions. But it urged Knight to make some new promises, including higher wages, independent factory monitoring and support for unions.