NIKE WORKERS ALLEGE THEY HAVE BEEN CHEATED OF MILLIONS OF DOLLARS IN WAGES THROUGH FORCED, UNPAID OVERTIME

February 22nd, 2011

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Team Sweat:

This afternoon I sent the letter below to Nike CEO, Mark Parker.  The letter outlines the information I was recently given by the trade union representing Nike’s 18,000 workers at PT Nikomas in Indonesia.  If Nike complies with my requests, I hope to have an update to you on this case on March 8th.

Peace, Jim Keady

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February 22, 2011

Mark Parker, CEO
Nike Inc.
One Bowerman Drive
Beaverton, OR 97005

Dear Mr. Parker,

On February 6, 2011 I had the pleasure of meeting with representatives from the Serikat Pekerja Nasional (SPN) in Serang, Indonesia to discuss the current conditions for Nike factory workers producing at PT Nikomas.

During this meeting, I was told that Nike factory workers at PT Nikomas are being forced to work unpaid overtime to meet Nike’s production quotas.

Here are the facts as they were given to me:

  • There are approximately 18,000 Nike factory workers at PT Nikomas and they produce more than 2,000,000 pairs of Nike sneakers per month.
  • Nike factory workers at PT Nikomas typically work from 7am-3pm.  This is followed by three hours of paid overtime.
  • Following their regular shift and paid overtime hours, your factory workers are then told by their supervisors to punch out on the time clock.
  • Once your workers are off the clock, they are forced by their supervisors to get back on the production line for one hour of unpaid overtime.
  • This hour of forced, unpaid overtime happens primarily in the sewing divisions and includes approximately 13,000 Nike factory workers.
  • The hourly wage for a fourth hour of overtime would be Rp12.600 ($1.40).
  • Nike factory workers are being forced to work this unpaid hour 6 days a week.
  • If these allegations are accurate, Nike factory workers at PT Nikomas have been cheated out of approximately  $5,460,000.00 this past year -  $1.40 (rate) x 6 (days) x 50 (weeks) x 13,000 (workers) = $5,460,000.00.
  • The SPN representatives shared that this forced overtime/wage cheating has been happening to Nike factory workers at PT Nikomas for 18 years.

In light of these alleged violations of your workers’ rights, I am requesting that:

1.     By March 8, 2011, Nike Inc. will contract the Trade Union Rights Centre (TURC) in Jakarta, Indonesia to conduct an independent investigation into the allegations at PT Nikomas listed above and the results of TURC’s investigation will be made public to the international NGO community, the press, and the trade unions at each Nike factory in Indonesia.

2.     By March 8, 2011, Nike Inc. will send an official memo to Muhaimin Iskandar, Indonesia’s Minister of Manpower, alerting him to the fact that you have received this memo and that you will be taking immediate action to ascertain the validity of the aforementioned violations of your Indonesian workers’ rights at PT Nikomas.

3.     By March 8, 2011, Nike Inc. will send an official memo to Rakhmat Suryadi, Chairman of SPN-Serang District, alerting him to the fact that you have received this memo and that you will be taking immediate action to ascertain the validity of the aforementioned violations of your Indonesian workers’ rights at PT Nikomas.

4.     By March 8, 2011, Nike Inc. will send me confirmation that each of the actions in points 1-3 has been taken, along with copies of the memos sent in English and Indonesian.

Once the findings from the investigation by TURC are complete, we can discuss what appropriate action(s) might follow.

If you would like to discuss this in more detail or if you have any questions, please feel free to email me at jim@educatingforjustice.org or call me at 732-988-7322.

I thank you for your consideration of this matter and I look forward to hearing from you by March 8th.

Peace,

Jim Keady, Director
Educating for Justice, Inc.

“WE ARE POWERLESS” A MINDSET THAT WE MUST BREAK

February 2nd, 2011

“We are powerless.”

As these words were uttered yesterday in two very different settings, my heart sank and my Irish temper flared. I am saddened because no human being should feel powerless. We all have inherent rights and dignity and given these, we all have power, given from God, that no man or economic system can strip from us. I am angry because it is completely unjust for people and corporations (ex. Nike) from my country to take advantage of this situation and exploit it for the pure maximization of profit.

I first heard the words “we are powerless,” during the panel discussion on the state of labor rights I took part in with the Jakarta Foreign Correspondents Club. It was during the presentation by Pak Wahid from the Ministry of Manpower.

During the question and answer period, a reporter from Agence France-Presse asked Pak Wahid why he felt that the implementation of Indonesia’s labor laws is ineffective and why it is so difficult when trying to improve labor conditions. After Pak Wahid shared his thoughts with the reporter, I asked the moderator if I might also comment.

I began, “You asked why does the Ministry of Manpower feel powerless? As an outsider, the analysis that I would give is because the country is still under colonial rule.”

There was a collective look of surprise among the Indonesians in the audience when I said this. Many of them know and feel this is the truth, but I imagine it was the first time that any of them heard these words come from the mouth of someone from one of the colonizing countries.

I continued, “In the past, it was the Dutch. The neo-colonialists are the transnational corporations. If you read Adrian Vickers, ‘A History of Modern Indonesia,’ just read the first three chapters and substitute ‘the Dutch’ for the Nikes, the Adidas, the Freeports… and it’s the same dynamic.

…And that’s where I have a problem as an American. Because I feel that Nike is misrepresenting what Americans stand for and what our values are. They are exploiting the corruption and collusion and nepotism (and) the poverty in this country and it is unfair and unjust.”

Later that evening, I was sitting on the floor of a cramped room in Balaraja, having a discussion with a Nike shoe factory worker about what he wants to do about the poor wages he and his fellow workers are being paid. As part of the discussion, we did a role playing exercise. I pretended to be a Nike worker and I spoke to my translator Alif as if he were the CEO of Nike. I told the Nike CEO that I was angry. That I work hard every day. That my friends and I deserve better wages. That it is unfair that the Nike executives are greedy and get rich, while workers grind out lives in abject poverty.

I asked the worker if this is what he felt in his heart. He said, “Of course. I’m not stupid Jim. I know this is our reality and it is unfair.  But… We are powerless.”

Alif, my translator, who himself is a journalist and activist, said, “Jim, he is stuck.” I agreed and the discussion ended there.

What both of my Indonesian friends have in common is a deeply held belief that Indonesians are powerless against the forces of globalization that have swept their country. This belief is rooted in a long and painful history of colonization in Indonesia and it is a mindset that must be broken if Indonesians are to claim the power that they do have over their lives, their workplaces, and the destiny of their nation.

I know in my heart and head what we need to do. We need a massive grassroots education campaign grounded in the theory of Paulo Freire (read the book Pedagogy of the Oppressed). I have actually worked with my Indonesian colleagues and developed an action plan for doing such critical education with the 123,000 workers producing Nike products in Indonesia. The challenge is that the price-tag for its implementation is $175,000 for one year’s worth of work.  But, I know we can make it happen.

Why?

Because in the struggle to make this a reality… we are not powerless.

Peace (and Justice), Jim Keady

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