Nike's annual meetings "gave way to a new, cautious
reality," according to Jeff Manning of the Portland
OREGONIAN. Nike officials "spent much of the meeting
dealing with renewed allegations that the company is
exploiting and abusing factory workers in Asia." In
addressing shareholder, Nike CEO Phil Knight said, "Good
shoes are made in good factories. Good factories have good
labor relations. We're running essentially good factories."
Manning also reported that shareholders didn't leave "giddy
in anticipation of another stock split and another banner
year," after Nike officials said U.S. footwear sales have
"slowed considerably," and "probably will be down in the
next two or three quarters, probably less than" 10%. While
Nike President Tom Clarke said sales during the back-to-
school period "were OK," Manning wrote that "key retailers
reported sluggish demand" (Portland OREGONIAN, 9/23).
MORE KNIGHT: In his address to shareholders, Knight
said, "We try to be as good citizens and operate as good
factories as we can, but there are exceptions from time to
time to our Code. ... The process of having managers from
foreign countries overseeing those 500,000 workers is
somewhat difficult for all of us, but over the next two or
three years, you will see that process change." Knight also
added that Nike has commissioned "a prestigious university"
to do a study on wages throughout Southeast Asia and in Nike
factories that will "exonerate" the company. He said the
report will be issued "fairly shortly" (Nike).
