Nike is "making some sweeping changes to improve the
working conditions in its Asian factories," according to
CNBC's Sue Herrera on "The Edge." Speaking before the
National Press Club yesterday in Washington, DC, Nike Chair
Phil Knight "promised to improve conditions and adopt some
U.S. standards in its Asian plants. He says that Nike will
raise the minimum age of shoe factory workers from 14 to 18
and adopt U.S. indoor air quality laws" ("The Edge," 5/12).
DETAILS: Nike also raised the minimum age for hiring
new workers at its other plants to 16. In N.Y., John
Cushman reports that Knight also agreed to a "demand that
the company has long resisted, pledging to allow outsiders
from labor and human rights groups to join the independent
auditors who inspect the factories in Asia, interviewing
workers and assessing working conditions." Knight: "We
believe that these are practices which the conscientious,
good companies will follow in the 21st century. These moves
do more than just set industry standards. They reflect who
we are as a company." Cushman writes that Knight "seemed to
acknowledge that it was time for drastic action," but notes
that the reforms, however, "did not include increased wage,
a major complaint of critics." Knight: "The Nike product
has become synonymous with slave wages, forced overtime and
arbitrary abuse" (N.Y. TIMES, 5/13). In DC, Frank Swoboda
called the expansion of the independent monitoring system
the "biggest and perhaps most elusive part of yesterday's
announcement." Knight acknowledged that Nike was "still
trying to work out a system that would adequately monitor
the overseas operations to the satisfaction of both the
company and its critics." Swoboda also reports that Nike
said it has increased the wages of its 27,000 footwear
workers in Indonesia. Wages are set by the government in
both Vietnam and China (WASHINGTON POST, 5/13). In N.Y.,
Bill Richards writes that the changes will cost Nike
"several million dollars." Knight: "I truly believe the
American consumer doesn't want to buy products made under
abusive conditions" (WALL STREET JOURNAL, 5/13). On ABC's
"World News Tonight," Peter Jennings reported that Nike,
"under a lot of pressure, says it's going to improve things
at its factories in Asia ("World News Tonight," 5/12). "NBC
Nightly News" and "NBR" also reported on Nike's reforms.
TEN-YEAR PLAN? In N.Y., John Cushman writes that Nike
critics "responded favorably to many elements of the plan"
(N.Y. TIMES, 5/13). But Knight said he doesn't expect the
new initiatives to stop the company's critics "any time
soon." Knight: "Not in the near term. I think it's a ten-
year process" (WASHINGTON POST, 5/13). Andrew Young, whose
firm Goodworks Int'l was hired by Nike in '97 to assess its
factories in Asia, said that while Nike "probably never
wanted a leadership role in the area of labor practices, I
think we saw expressed today their realization that it has
been thrust upon them" (ATLANTA CONSTITUTION, 5/13)
ON WALL STREET: Nike shares rose $2 to $47.43 3/4
yesterday, but CNBC's Tyler Mathison reported that was
"still way off" its 52-week high of 60 1/2" (CNBC, 5/12).
