Layoffs of overseas factory workers at Nike-contracted
factories was examined by Richard Read of the Portland
OREGONIAN. Nike execs "are unable to say how many shoe
factory workers have lost their jobs," but Nike spokesperson
Vada Manager said that the number of people making Nike
footwear "has fallen by many thousands and now stands at
227,248." In Indonesia, Nike's work force has fallen from
almost 120,000 at its peak early last year to 76,000 workers
as of May. Read wrote that Nike managers "who would like to
help laid-off workers can't figure out quite how." In
Indonesia, several factories bought goods such as rice,
sugar, and cooking oil "and offered them to workers at
stable, discounted prices during recent inflation, shortages
and devaluations." Joel Enderle, Nike's Regional Labor
Practices Dir in Thailand: "The difficult question is ...
how long do you keep them on the bottle? When you're
talking about subsidizing a worker plus a family on food,
how long do you do that?" (OREGONIAN, 6/14).
LISTENING TO ASIA: In N.Y., Nicholas Kristof reports
today, "Just as pressure is growing in the West against the
use of sweatshops in developing countries, the Asian
financial crisis is spawning such desperation that more
people than ever seem willing to take grim or dangerous jobs
in such factories." But Kristof adds, "There is no evidence
that well-known Western companies are taking advantage of
the crisis to take short cuts on safety standards" (N.Y.
TIMES, 6/15). In Atlanta, columnist Steve Hummer writes
about the "slick packet" he received detailing Nike's
overseas labor practice reforms. Hummer: "We might be a lot
more willing to accept Nike at its word if only it wasn't so
overbearing" (ATLANTA CONSTITUTION, 6/15).
NO COMMENT: AD AGE reports that Nike "is said to be
shopping for possible acquisitions that could help its entry
into the sports equipment market," and sports marketing
execs say Nike "has been eyeing Rawlings Sporting Goods Co.
for at least a year." Rawlings CFO Paul Martin: "We do not
comment on takeover rumors." A spokesperson for Nike's
equipment division also wouldn't comment (AD AGE, 6/14).
