November 24th, 2009
Team Sweat:
Thanks to Team Sweat member, Jeff Ballinger, for sending along the following story about Nike’s Chinese sweatshops. The article talks about “OEMs.” OEMs are “original equipment manufacturers,” companies that make original equipment for Nike.
Peace, Jim Keady
Chinese Media: Nike OEMs In China Alleged To Use Sweatshops
China CSR
November 18, 2009
Mike, the pseudonym of a person who has allegedly worked as a top executive at a Nike original equipment manufacturer factory in China for six years, is reported in local media as revealing an inside story about sweatshop factories used by Nike OEMs in China.
According to the Daily Economic News report, which consists of a dozen pages, Nike’s Chinese OEMs have been using subcontract labor for many years to make high profits. Shanghai Wande Sports Goods Company and Shanghai Bai’en Sports Goods Company, which are the two major OEMs for Nike’s handmade football business, are alleged to have subcontracted making footballs to workers in remote areas of China between 2003 and 2007.
According to both the Internet news source ifeng.com and China’s Daily Economic News, Mike said that in recent years, Nike’s Chinese football OEMs have used cheap labor from the rural areas of Jiangxi, northern Jiangsu, and Anhui to sew the footballs. He revealed that a finished football is sold at USD8, but it is only priced at USD1 when leaving the factory, while the workers only get USD0.73 for each ball they sew. Mike said that he spent five out the last six years helping the factory hide its behavior when Nike came to audit.
Mike stated that it seemed strange that Nike was not aware of the factory’s illegal practice, given that with a daily production capacity of four or five footballs per person per day the factory, which has a total of about 100 workers, can produce as many as 120,000 footballs each month. Interestingly the factory was even cited by Nike, in its 2008 corporate social responsibility report, as an excellent OEM.
According to Mike, Nike’s CSR department only reviewed such items as the work hours, extra work time and salary amounts on the pay slips provided by the OEM. It is difficult to see purely by looking at the pay slips whether the OEM’s actual output matches its real production capacity, or whether it has been involved in sub-contracting. In addition, Nike’s quality assurance department is only responsible for evaluating the OEM’s product quality and qualified rate. They did know the OEM’s actual output, but they do not audit the actual number of employees of the OEM.
Zhu Jinqian, a spokesperson for Nike, stated to local media that Nike has invited a third-party organization to investigate the OEMs after receiving complaints about them.
Meanwhile many other sports brands, such as Adidas and Puma, are also commissioning third-party organizations to probe into the behavior of their OEMs.
###
Original story at http://www.chinacsr.com/en/2009/11/18/6603-nike-oems-in-china-alleged-to-use-sweatshops/
November 24th, 2009
Team Sweat,
On October 29, 2009, I took part in a meeting at TIAA-CREF Headquarters in New York City to discuss how TC could use their roughly $240,000,000.000 investment in Nike stock to bring about change on the ground for Nike’s factory workers.
The hour-long meeting with Roger Ferguson, TC’s CEO, and John Wilson, TC’s Director of Corporate Governance, went very well. I shared information with Mr. Ferguson and Mr. Wilson about my July/August research trip to Indonesia, including the facts that Nike workers in Indonesia are still paid a poverty wage, that they do not have fair union contracts in place, and that there are still basic worker rights being systematically violated.
Mr. Ferguson made a commitment that TC would continue to dialogue with Nike on these issues and to seek documentation from Nike with regard to their monitoring and remediation mechanisms. Along with this effort, I strongly recommended that Mr. Ferguson seek a clear public statement from Nike with regard to the issue of workers’ wages. To date, Nike has been less than consistent on where they stand on this issue and I stressed that consumers and investors have a right to accurate information.
In what can be seen as a positive step forward in TC’s engaging Nike, Mr. Wilson has recently gone on record stating that:
“We… initiated a dialogue with Nike, Inc. about labor and human rights issues.”
Having TC go on public record stating that they are engaging Nike may not seem all that important, but in this fight for justice, every small victory counts.
Peace, Jim Keady
November 17th, 2009
Phil Knight, the Chairman and founder of Nike, has recenlty been selling off some of his Nike stock.
As reported in the article below, despite the $332,000,000.00 he sold this month, “he remains the company’s largest shareholder by far. He now controls 86.9 million shares of Class A stock, which elects nine of the company’s 12 directors. The stake is worth $5.57 billion, based on Tuesday’s closing price. Knight ranked No. 24 on this year’s Forbes list of the country’s richest people. He has a net worth of roughly $9.5 billion.”
And workers in Indonesia can still live in grinding poverty.
Peace, Jim Keady
Tuesday, October 27, 2009
Knight sells another $37M of Nike stock
Portland Business Journal
Nike Inc. co-founder and Chairman Phil Knight sold nearly $37 million of Nike stock Monday and Tuesday, according to documents filed with the U.S. Securities and Exchange Commission.
Knight has sold $332 million, or 5.1 million shares, of Nike stock in the past two weeks.
The selling spree began on Oct. 14 when Knight acquired 5 million shares of the company’s Class B stock in exchange for 5 million shares of the company’s more powerful Class A stock.
Knight sold the shares for between $62.50 and $66.34.
He remains the company’s largest shareholder by far. He now controls 86.9 million shares of Class A stock, which elects nine of the company’s 12 directors. The stake is worth $5.57 billion, based on Tuesday’s closing price.
Knight ranked No. 24 on this year’s Forbes list of the country’s richest people. He has a net worth of roughly $9.5 billion.
Oregonians pay a 9 percent tax on capital gains, meaning the state will collect roughly $30 million from Knight’s recent stock sales.
Nike (NYSE: NKE) shares remain near a 52-week high after closing Monday up less than 1 percent. In the past year, the stock has ranged between $38.24 and $66.35.
The company declined to comment about the sales.
November 17th, 2009
Team Sweat:
Check out the article below from The Cap Times about student activists pushing the University of Wisconsin-Madison to end their relationship with Nike over labor rights violations.
Peace, JWK
Campus Connection: Committee asks UW-Madison to end Nike deal
Todd Finkelmeyer | Posted: Tuesday, November 17, 2009 7:15 am |
The University of Wisconsin-Madison’s Labor Licensing Policy Committee voted to recommend that Chancellor Biddy Martin start taking steps to end the university’s apparel contract with Nike, Inc. due to alleged labor rights abuses at two of the company’s factories.
But don’t expect Martin to take any immediate action.
The LLPC’s recommendation on Friday comes after two Nike factories that produce collegiate apparel in Honduras — Vision Tex and Hugger de Honduras — were shuttered early in 2009 without paying legally mandated severance and back pay to some 1,800 workers. The amount owed is more than $2 million.
However, the committee’s vote — which came under the urging of the Student Labor Action Coalition — is strictly advisory.
Dawn Crim, a special assistant to the chancellor for community relations, said Monday the chancellor is hoping to hear back from Nike representatives before taking any major action against the company. She said the university is hoping to receive a phone call from Nike by the end of the week.
“Really, this is about engagement and working with them to remediate the problem,” said Crim. “Nobody wins when contracts are ended. Ultimately, it’s about workers and human rights, and if you end the contract you have no leverage.”
As a licensee of UW-Madison apparel, Nike must follow a university code of conduct for producers. This code, among other things, states that companies must pay these legally mandated wages and other benefits.
Nike paid UW-Madison nearly $50,000 this year to use the university insignia and other logos, such as Bucky Badger.
Jan Van Tol, a member of the Student Labor Action Coalition, on Monday said he generally appreciates the attention Martin is giving this topic. Nonetheless, Van Tol said he was hoping that Martin and the university would take a quicker and harsher stand against Nike.
“There is some truth to the fact that, once you cut a contract, you’re kind of out of the game,” said Van Tol, a student member of the university’s Labor Licensing Policy Committee. “But I think it’s also important to remember this is a national issue. So when UW-Madison cuts a contract, it really opens up the space for other universities to take action, too. Often, they’ll look to us as a leader.”
On Nov. 3, Martin wrote a letter to Nike expressing concerns over a Worker Rights Consortium report which spelled out the conduct violations at the two apparel factories in Honduras. Martin wrote to Nike that “ultimately, we believe under the university code of conduct, it is Nike’s responsibility to ensure that alleged labor rights violations by your subcontractors are remedied.” She then asked that Nike provide detailed information about how the company is dealing with the situation.
Martin requested that Nike respond by Nov. 11. But as of Monday afternoon, Crim said Nike’s only response came on Nov. 10, when it sent out a generic letter to all universities who have been asking about the situation. In it, Nike indicated it “is deeply concerned about the issues raised by the Worker Rights Consortium … ”
“We don’t consider that to be a response to the chancellor’s letter,” said Crim. “That was Nike simply communicating to license directors around the country and was an update of what was going on. It was in no way a response.”
The Nike statement added “it is important to note that, to the best of our knowledge, none of the products manufactured for Nike at either Hugger or Vision Tex was collegiate licensed apparel, aside from a one-time order of 800 units in 2007 for one university partner.”
November 16th, 2009
(I joined Team Sweat because) Jim came to my school and inspired me.
- Dylan Nolan
I’ve played soccer all my life, and for most of I have used Nike cleats because I think that they are really comfortable. I saw your video a few months ago and since then I have been trying to find Athletic companies that make soccer cleats that don’t use sweatshops, or exploit people in any way. I haven’t found any yet. I was wondering if there is any brand that is fair trade that makes soccer cleat? If you guys could email that would be awesome, and very appreciated. I believe in what you guys are doing also if there is any way to get involved, please email me. Thank you.
- Rico Cabrera
@Rico… There currently is not a major brand that is “sweatfree” that supplies soccer boots. So, I would encourage you to do what I do. Cut the logos off your shoes or cover them up. Yes, we have to wear something to play, but we do not have to walking advertisements for companies that are not in line with our values. Peace, Jim Keady
Jim Keady went to my school, Fordham Prep, and his story touched me and inspired me to help my brothers and sisters that suffer everyday. I am going to raise awareness in my old school which has about 400 children and I’m telling my best friend who goes to another high school and now he is going to address the subject to his class president and religion teachers. I want more ideas to help stop this devilish scheme.
- Tony Pecorelli
It (the Nike sweatshop issue) was discussed in class and I want to be part of it (Team Sweat).
- Harbakshish Singh
I am passionate about human rights and specifically the rights of children. I am also convinced that one of the problems is the demand that a disposable society with expectations of cheap products places on companies. I also believe that we need to be willing to spend more and buy smartly as consumers to send the message to companies.
- Lisa Acheson
I attended your session at Rutgers University-Camden today and wanted to let you know how wonderful I think you are doing. I do plenty of volunteer work helping all different areas of the world. My main charity is helping end child hunger in America. Needless to say I was very honored to attend your session and wanted to let you know that. If you need any help when it comes to spreading the word, please let me know. I would love to be involved in another charity or good organization that involves helping the less fortunate.
- Stephanie
I always try to buy sweatshop free products. The injustice that takes place is something I want to help educate more people about. We have a choice every time we buy something, what we buy is what we support. and if more people knew what they were supporting then I believe they would make different decisions. Thanks for all the work you do!
- Jessica
(I joined Team Sweat) because I believe in the cause.
- Erica Sheeley
It is starting to make me angry that Nike pays very little for more than hard work. And i have a good idea for what we should do to get a small group (10 or 15 people) to be heard.
- Matthew Phillips
Hi Jim,
I took 2 of my junior high girl scouts (Marcy, Marissa) to see your presentation on Thursday, 10/8 at Wilmington College in Ohio. The girls took it upon themselves to, that very night, decorate tee shirts with a message about this issue. My daughter wore hers to school the next day. They also did a pair of jeans the next evening to complete their outfit. I have attached photos for you to see. My daughter did get comments and her teachers were impressed with what she had to tell them about the meaning behind her shirt.
I just wanted to share with you, that it may be a small statement, but the word is getting out! Thanks for a great presentation.
Patty Grice
Girl Scout Troop 795
I work for SEIU and no matter where workplace abuses are taking place in this world, we need to fight back the evils of the super wealthy and powerful.
- Lance Lindeman
I have followed sweatshop abuses for many years, and being an educator, have exposed many students to problems. Thanks to the work of Jim and Leslie, and of Charlie and others at the National Labor Committee, progress is being made. Sure, it is slow, but it is a step forward. Keep on stepping, Jim, and more and more of us will follow you.
- Todd Forman
Well, I was just at a presentation by Jim Keady and was really touched. I was aware of sweatshops and that Nike was a company who participated in inhuman activity. However, I was never present the opportunity to join the cause to stop Nike and this presentation gives me that opportunity.
- Melissa Archuleta
A presentation was done at our college, Saint Martins University and took quite an impact on me. I want to join and contribute to bringing justice to this issue.
- Chanell Sagon
I saw Jim speak at Saint Martin’s University and was moved by his presentation. This is an issue that requires mass amounts of people to stand up and fight. I am joining this fight. I cannot feel comfortable here in America having everything that I need and most of the stuff I want when there is an injustice so terrible being funded and supported by an enormous American corporation. I realize that there will always be injustice somewhere in the world but Nike is a company that has the ability and the money to change the world, and with great power comes great responsibility. It is time for Nike to stop abusing this power.
- Ben Surgalski
Jim Keady had visited my school, CBA, and I agree with his cause. I want these workers to be able to have good standards of living.
- Louis Poggioli
I believe that we must put a stop the many injustices that Nike has been participating in through their continued use of sweatshops in Indonesia.
- Nick Avino
I’m joining team sweat because of the inspirational lecture Jim Keady delivered at Bucknell University. I am really interested in human rights, which can sometimes be an overwhelming topic because the issues are so large and make you feel so helpless. The progress that Jim Keady has made in his pursuit of workers’ rights in Indonesia gives hope to all of us trying to advocate for human rights. I would love to contribute to the progress made in this worthy cause. I am going to write my email to mark parker right now.
- Erika Iouriev
I have joined team sweat because I have been researching you guys for a paper I’m doing on social movements in my persuasion class. What I’ve seen and read makes perfect sense to me and I love what is being done about it! I too am a Christian and I feel that the unfair treatment of sweatshop workers needs to be changed. I feel like I’ve been duped by Nike and I want to dupe them back!
- Ryan
I am a high school student who recently sat in a class that Mr. Keady presented to (Christian Brothers Academy) and have just been thinking about the goals of Team Sweat. I also just want to be a part of something that not only is just trying to take down a single world known company, but the overall problem that sweatshops and unfair labor is involved with.
- William Gerard
I just learned about (Nike’s) sweatshops and I’m disgusted with the working conditions in Indonesia, China, and everywhere else. I’m embarrassed that I’ve contributed to this fact as a consumer, and I’m going to do all I can to try to change this. I’m going to tell everyone I know about these conditions and I will never buy another (Nike) product as long as I live. (I’m only 19 years old…)
- Sydnay Youtz
While I learned about it (Nike’s sweatshops), stopped buying Nike, and bought the (Behind the Swoosh) DVD almost 3 years ago, I was reminded tonight at Jim’s talk of the importance of your mission. It made me super happy that he called my Catholic Jesuit university on selling/branding their athletes with Nike; it angered me when I first came to school and saw that - I don’t remember learning about how sweatshops were a part of Catholic Social Teaching…
- Mary Henneberry
I’m from Surabya, Indonesia. I heard about this program from Mr.Keady’s presentation at Creighton University on 11/12/2009. I want to show my support and offer any help I can contribute to the team.
- Ayu Pertiwi
I heard you on the fitness rocks podcast (www.fitnessrocks.org). I enjoy Nike and think they can do better…I’ll try and do my bit to help you.
- Troy Jensen
November 11th, 2009
Tonight I will be attending the book release party for John Perkins’ new book “Hoodwinked.” John Perkins is the author of the best-seller, “Confessions of an Economic Hitman.” In chapter 19 of Hoodwinked, Perkins discusses the work we are doing with Team Sweat and our fight for living wages and union contracts for Nike’s factory workers.
Here is a link to Perkins’ recent interview with Democracy Now’s, Amy Goodman and below is information about the book.
Peace, Jim Keady
about this book
John Perkins has seen the signs of today’s economic meltdown before. The subprime mortgage fiascos, the banking industry collapse, the rising tide of unemployment, the shuttering of small businesses across the landscape are all too familiar symptoms of a far greater disease. In his former life as an economic hit man, he was on the front lines both as an observer and a perpetrator of events, once confined only to the third world, that have now sent the United States—and in fact the entire planet—spiraling toward disaster.
Here, Perkins pulls back the curtain on the real cause of the current global financial meltdown. He shows how we’ve been hoodwinked by the CEOs who run the corporatocracy—those few corporations that control the vast amounts of capital, land, and resources around the globe—and the politicians they manipulate. These corporate fat cats, Perkins explains, have sold us all on what he calls predatory capitalism, a misguided form of geopolitics and capitalism that encourages a widespread exploitation of the many to benefit a small number of the already very wealthy. Their arrogance, gluttony, and mismanagement have brought us to this perilous edge. The solution is not a “return to normal.”
But there is a way out. As Perkins makes clear, we can create a healthy economy that will encourage businesses to act responsibly, not only in the interests of their shareholders and corporate partners (and the lobbyists they have in their pockets), but in the interests of their employees, their customers, the environment, and society at large.
We can create a society that fosters a just, sustainable, and safe world for us and our children. Each one of us makes these choices every day, in ways that are clearly spelled out in this book.
“We hold the power,” he says, “if only we recognize it.” Hoodwinked is a powerful polemic that shows not only how we arrived at this precarious point in our history but also what we must do to stop the global tailspin.
November 11th, 2009
I want to thank all of the students and staff that attended my “Behind the Swoosh” lectures last week at Bucknell University (PA) and Willamette University (OR). Special thanks to Sithanda Ntuka and David Kristjanson-Gural for organizing the event at Bucknell and special thanks also to Chase Wiggins and Kate Snurr for organizing the event at Willamette!
And here is a double special shout-out to all the students in the Social Justice College at Bucknell! 
Peace, Jim Keady
November 11th, 2009
By Kristen Lunde
Friday, November 6, 2009 2:41 a.m.
A workshop being held in Grainger Hall today will assess existing methods of global labor standard improvement, specifically in regards to the collegiate apparel industry.
The forum, titled “Improving Labor Standards in Global Supply Chains: Codes of Conduct, Monitoring and Beyond,” will be an exchange of critical and productive points of view about an issue that has been a point of contention on many college campuses, including UW, in recent years.
One of the main goals of the workshop will be to discuss ways universities can be more proactive — rather than reactive — about problems with labor standards, Special Assistant to the Chancellor Dawn Crim said in an e-mail to The Badger Herald.
Additionally, Chancellor Biddy Martin will be attending the workshop as a participant to hear and learn more about global supply chains and labor standards.
“The Labor Licensing Policy Committee and [UW] administration are looking for more effective ways to have a positive impact on human rights in the global apparel industry,” Crim said.
A code of conduct is already in place, which governs UW licensees and aspects of production of anything that bears the UW logo, UW spokesperson John Lucas said in an e-mail to The Badger Herald. When issues arise, they are addressed by UW and its Labor Licensing Policy Committee.
“We have had the code of conduct for the past 10 years. They have been beneficial but have had limited impacts,” Crim said. “We wanted to open up a dialogue to see if new initiatives, processes, etc. are available or have a better impact.”
UW is not the only university dealing with labor standards. Students across the United States have been vocal about their opposition to immoral labor practices related to collegiate apparel.
“Most college campuses are grappling with similar issues when it comes to labor standards. We have invited many of them here to join in the discussion,” Crim said.
Although not involved in planning the workshop, the Student Labor Action Coalition has been actively involved in recent talks regarding labor standards at UW.
SLAC recently asked Martin to pressure Nike after the illegal shut down of two factories in Honduras.
“We hope and expect that she will do better than her predecessor by holding Nike accountable through all available means — including severance of Nike’s licensing contract if necessary,” Jan Van Tol of SLAC said in an e-mail to The Badger Herald.
According to Van Tol, students consistently demand universities like UW use their international clout to pressure apparel companies to end sweatshops and to respect laborers, as well as their right to unionize.
UW has been one of the most progressive universities in trying to end abuses that occur in the apparel industry, Lucas said.
Although the code of conduct and discussions such as this forum are signs of exemplary progress, Van Tol thinks there is much more that can be done with existing tools.
November 11th, 2009
By Andrea Hammer
Assistant Campus Editor, The Purdue Exponent
Publication Date: 11/06/2009
Eight students with Purdue Organization for Labor Equality marched to the University president’s office reception area with a “gift” of $2 and a half million in play money Thursday and were later removed from the building by University police.
In support of labor equality, the students marched into Hovde Hall and went to President France Córdova’s office to make their concerns known. Organization member Dan Kercher, a senior in the College of Liberal Arts, said the organization found out about a violation of Purdue’s Code of Conduct with apparel licenses at two factories in Honduras.
According to the Worker Rights Consortium, the factories, which produced Nike apparel, were closed by subcontractors without any kind of warning to workers. The workers were owed $2.5 million in severance pay when the factories were shut down. The equipment was liquidated, providing the workers with a small portion of their money, but they are still owed more than $2.1 million.
After reading a page-long letter detailing their grievances, students dumped the play money on the floor of the reception area. An administrator insisted that he would take the letter, but said the students needed to leave. When the students were asked to pick up the play money, they refused.
Gautam Kumaraswamy, a junior in the College of Engineering and a member of the organization, said the students were under the impression they were in a public place because they were in a reception area and they did not want the play money back.
“What we put down in there is what we gave to the University,” he said.
After handing over the letter, students were ordered to leave the building by Purdue Police.
Brian Napoletano, a graduate student who participated, said letting sweatshops produce clothing with the Purdue logo on it is sending the wrong message.
“By letting them use the Purdue logo, they’re representing Purdue,” he said.
Purdue Police Chief John Cox said he supports freedom of speech, but students must be within University policies with their events and protests.
“They can work with space management to arrange the use of space,” he said.
Purdue spokeswoman Jeanne Norberg said this breach of contract by Nike will be handled the same way as last year’s incident with Russell Athletics. After investigating claims of labor inequality brought forth by the Organization for Labor Equality last year, Purdue cut ties with Russell.
“This has just been brought to our attention,” Norberg said. “We have a committee that will look at it.”
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