A 14-month inquiry by Reebok of its two Indonesian
factories "uncovered numerous substandard working
conditions, including ventilation problems, lack of adequate
protection from harmful chemicals and blatant sex bias,"
according to Joseph Pereira of the WALL STREET JOURNAL. The
41-page report included details of "skin rashes and
headaches suffered by employees, faulty elevators and an
inadequate number of toilets." Reebok says that the study
"pushed the company to press for about $500,000 in on-site
improvements at the" two factories. Reebok paid Jakarta-
based Insan Hitawasana Sejahtera $35,000 to conduct the
study (WALL STREET JOURNAL, 10/18). Reebok released its
report this morning and claims to be the "first company in
the footwear industry to make public an in-depth, third-
party critique of labor conditions in factories making its
product" (Reebok).
A DIAMOND IN THE ROUGH? In a separate report, Pereira
writes that athletic-footwear makers "are expected to post
lackluster third quarter earnings" due to "slow-selling
apparel" and "stiff competition from nonathletic footwear
makers." However, Pereira calls Saucony "a star performer"
in the industry, as its brand has become "a fashion
favorite." The company has "improved its position by
tapping into a fashion market always hungry for something
new and different" (WALL STREET JOURNAL, 10/18).
