An Example of Team Sweat’s Advocacy for Nike Workers in Indonesia

Team Sweat:
I want to share with you an example of the type of advocacy I do on behalf of Nike’s Indonesian workers. It is this kind of engagement with Nike over the years that has won us victories small and large. Since this is an ongoing case and the workers do not yet want to go public, I have changed the name of the factory and the union in the copy below. What you will read is a letter I sent to Nike CEO, Mark Parker on August 23rd. I have already heard back from Nike in response to this letter and I was assured that I would receive their official position on this matter not too soon after the Labor Day holiday.
Peace, Jim Keady
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Dear Mark,
I am writing with regard to “Factory A”, an apparel factory in Indonesia that has produced Nike products. This factory is not on your May 2011 factory disclosure list, but it was on your April 2008 list and as far as I have been able to determine, it is still producing Nike products.
On Wednesday, June 15, 2011 I met with representatives from the union at “Factory A.” The allegations they shared with me about the conduct of the management at the factory as well as the conduct of Nike’s CSR team are somewhat disturbing. I had previously met with these union representatives in June 2009 along with members of Nike’s CSR team (this was the trip on which Caitlin Morris accompanied me).
Here are the facts as the union officials gave them to me:
* After the June 2009 meeting, “Yani”, a member of Nike’s CSR staff in Indonesia, did a site visit to “Factory A” to see if Nike’s Code of Conduct was being adhered to.
* During “Yani’s” visit, the union officials reported the following violations to her: management engaging in union busting; management yelling at workers on the production lines (calling workers names like “dog”); management throwing materials at workers; and management not paying workers for overtime hours worked.
* The union officials report that after “Yani’s” visit, Nike USA pulled the orders from “Factory A.”
* The union officials report that in response to this, the management told the workers that this happened because the union reported violations to Nike. The management made an announcement to the all production line workers, saying, “We are no longer producing for Nike, because (the union) talked too much to the buyer.”
* A member of the union called “Yani” to discuss this. When “Yani” answered, she said, “Sorry, you have the wrong number.”
* The union officials report that in November 2010, Nike reinstated orders at the factory.
* The union officials report that “Factory A” is currently producing tracksuits for Nike. The minimum daily production target is 1,100 pieces per line. There are five lines at the factory with 100 operators on each line.
* If the operators do not meet the daily production target, the line has to stay to meet the target. Almost everyday, one or two of the lines cannot meet the target. The operators on these lines stay for a minimum of 30 minutes to one hour and they are not being paid for the extra time they are working.
* The union officials report that since January 2010 until today, workers are having insurance and pension payments deducted from their paychecks, but the money is not being paid to the insurance company to cover their policy, nor is it going to their pension plans.
* The union officials are particularly concerned about union busting. The management recognizes the existence of the union, but they have no office at the factory. When the union asks to sit at the bargaining table, management refuses. When they are invited to trainings, they are given permission, but no payment for the day.
* If women are taking their menstrual leave, they are not being paid as guaranteed by law.
In light of these allegations I have the following questions:
1. Is “Factory A” currently producing tracksuits for Nike as the union alleges? If they are, why is the factory not on the May 2011 factory disclosure list?
2. Are the facts about “Yani’s” visit to the factory, Nike pulling orders, and the management blaming workers accurate? If these facts are accurate, how do you plan on gathering information in the future? These workers trusted the process that Nike provided (I was there to witness the beginning of this process) only to be penalized for their honesty by having orders cut and by being publicly chastised by the management.
3. If workers have been cheated of wages for overtime hours worked, what will Nike do to ensure that they are paid the monies they are owed and guarantee that this overtime wage cheating does not happen in the future?
4. If one or more production lines at the factory are not meeting the daily production targets, it seems clear that the source of the problem is in Beaverton with your sourcing team and the unrealistic demands they are placing on the factory. What actions will be taken to address this?
5. Can Nike intervene to help the union get an office at the factory to conduct their activities?
6. If women workers have not been paid as they should during their menstrual leave, what will Nike do to ensure that they are paid the monies they are owed and guarantee that this lack of payment does not happen in the future?
I thank you for taking the time to read this report and I request a written response to the questions above by Monday, September 5, 2011.
Peace, JWK
