"Multinational corporations ... should not be paying workers starvation wages."
Bernie Sanders, June 14, 2018, "Not Me. Us"
In the 1990s, Nike was accused by human rights and labor activists of "building its corporate wealth upon the backs of Asian sweatshop laborers" because it used cheap Asian labor to produce its shoes and other sporting goods.
Eight years later, company founder Phil Knight promised to eliminate the use of sweatshop labor. It appears that promise has not been kept.
In March of 2017 the International Labor Rights Forum charged that Nike had “turned its back” on labor agreements, effectively preventing independent monitors from reviewing conditions in many of its overseas factories.
Other groups say Nike has continued to employ predatory labor practices against women in many of its Asian factories. They argue female workers, who account for 85% of all workers in Nike's Vietnam shoe factories, are paid less than a dollar an hour for a 48-hour work week.
Sen. Josh Hawley, R-Mo., states, “Nike is a symbol of everything wrong with the corporate economy. ... They take advantage of our laws. They send jobs overseas for sweatshop wages, partner with repressive regimes, and aggressively avoid paying any U.S. taxes.”
In May of 2014, Matthew Kish wrote in the Portland Business Journal that "a new report from Nike about its efforts to become a 'top corporate citizen,' does not include information about the wages paid to its roughly 1 million contract factory workers. ... The company released its 'corporate responsibility report' this month, but it did not include a table showing the average wages at the 785 contract factories that make Nike products."
In its report, Nike admits that wages for its factory workers remain one of three priorities. Twenty-one years after Nike's Knight promised to clean up the sweatshop problems, employee wages, worker representation and excessive overtime remain unfixed to the advantage of Nike corporate profits.
The most recent data on what Nike pays its Asian factory workers comes from 2001. In Bangladesh, it paid roughly $36.01 per month. In Vietnam, $73.94. In India, $75.79.
A person who works a 48-hour work week, works about 208 hours per month. In India, that would be about 37¢ per hour.
The wages that Nike currently pays appear to be a closely guarded corporate secret. In September 2018, Newsweek wrote, "The amount factory workers earn making Nike products varies depending on the facility and the country. Nike did not immediately respond to Newsweek's request for comment and clarification about how much it pays workers on average."
Would that suggest that Nike doesn't want the American public to know how much it's paying laborers?
In the 1990s, Nike was accused by human rights and labor activists of "building its corporate wealth upon the backs of Asian sweatshop laborers" because it used cheap Asian labor to produce its shoes and other sporting goods.
Eight years later, company founder Phil Knight promised to eliminate the use of sweatshop labor. It appears that promise has not been kept.
In March of 2017 the International Labor Rights Forum charged that Nike had “turned its back” on labor agreements, effectively preventing independent monitors from reviewing conditions in many of its overseas factories.
Other groups say Nike has continued to employ predatory labor practices against women in many of its Asian factories. They argue female workers, who account for 85% of all workers in Nike's Vietnam shoe factories, are paid less than a dollar an hour for a 48-hour work week.
Sen. Josh Hawley, R-Mo., states, “Nike is a symbol of everything wrong with the corporate economy. ... They take advantage of our laws. They send jobs overseas for sweatshop wages, partner with repressive regimes, and aggressively avoid paying any U.S. taxes.”
In May of 2014, Matthew Kish wrote in the Portland Business Journal that "a new report from Nike about its efforts to become a 'top corporate citizen,' does not include information about the wages paid to its roughly 1 million contract factory workers. ... The company released its 'corporate responsibility report' this month, but it did not include a table showing the average wages at the 785 contract factories that make Nike products."
In its report, Nike admits that wages for its factory workers remain one of three priorities. Twenty-one years after Nike's Knight promised to clean up the sweatshop problems, employee wages, worker representation and excessive overtime remain unfixed to the advantage of Nike corporate profits.
The most recent data on what Nike pays its Asian factory workers comes from 2001. In Bangladesh, it paid roughly $36.01 per month. In Vietnam, $73.94. In India, $75.79.
A person who works a 48-hour work week, works about 208 hours per month. In India, that would be about 37¢ per hour.
The wages that Nike currently pays appear to be a closely guarded corporate secret. In September 2018, Newsweek wrote, "The amount factory workers earn making Nike products varies depending on the facility and the country. Nike did not immediately respond to Newsweek's request for comment and clarification about how much it pays workers on average."
Would that suggest that Nike doesn't want the American public to know how much it's paying laborers?
Newsweek added, "A June report from the Clean Clothes Campaign (CCC) alleged that factory workers today receive even less of Nike profits than they did in the 1990s."
According to CCC, 'The share of production costs of Nike and Adidas shoes that ends up in a worker's pocket is now a staggering 30 percent less than in the early 1990s (2.5 percent in 2017 for Nike shoes compared with 4 percent in 1995) ... The company has transferred much of its manufacturing to Indonesia, Cambodia and Vietnam as wages have increased in China.
"In the three southeast Asian nations, average earnings for garment workers are 45 to 65 percent below the so-called living wage ..."
If an Indian worker earns 37¢ per hour, that worker earns $2.96 for an 8-hour day. Compare that with prices for Nike Air Jordans.
Go to Amazon. Fourteen styles pop up. The first six are fairly representative of the others: Nike Mens Air Jordan 4 Retro Basketball Shoe, $170.95;. Nike Air Jordan Legacy 312 Men's Fashion-Sneakers, $91.98-$349.73; Jordan Nike Men's Air 3 Retro Basketball Shoes, $278.14-$611.60; Nike Jordan Men's Air Jordan 1 mid-Leather, $99.95; Nike Mens Air Jordan Spizike Basketball Shoes, $169.41; Jordan Air 1 Retro High Flyknit, $155.00-$660.40.
In its 2018 annual report, Nike asserts, "Management is committed to maintaining an environment where all Nike employees have the opportunity to reach their full potential."
Could you reach your full potential at 37¢ an hour? Nike is a multi-national corporation. That has afforded Nike three great advantages:
1. It derives 58% of its revenues from outside the U.S.
2. It pays pennies to hire its work force.
3. Nike uses sweatshop labor to maximize its profits.
It could not do better using slave labor? On this issue, Sanders is right.
According to CCC, 'The share of production costs of Nike and Adidas shoes that ends up in a worker's pocket is now a staggering 30 percent less than in the early 1990s (2.5 percent in 2017 for Nike shoes compared with 4 percent in 1995) ... The company has transferred much of its manufacturing to Indonesia, Cambodia and Vietnam as wages have increased in China.
"In the three southeast Asian nations, average earnings for garment workers are 45 to 65 percent below the so-called living wage ..."
If an Indian worker earns 37¢ per hour, that worker earns $2.96 for an 8-hour day. Compare that with prices for Nike Air Jordans.
Go to Amazon. Fourteen styles pop up. The first six are fairly representative of the others: Nike Mens Air Jordan 4 Retro Basketball Shoe, $170.95;. Nike Air Jordan Legacy 312 Men's Fashion-Sneakers, $91.98-$349.73; Jordan Nike Men's Air 3 Retro Basketball Shoes, $278.14-$611.60; Nike Jordan Men's Air Jordan 1 mid-Leather, $99.95; Nike Mens Air Jordan Spizike Basketball Shoes, $169.41; Jordan Air 1 Retro High Flyknit, $155.00-$660.40.
In its 2018 annual report, Nike asserts, "Management is committed to maintaining an environment where all Nike employees have the opportunity to reach their full potential."
Could you reach your full potential at 37¢ an hour? Working a 48 hour week?
Nike is a multi-national corporation. That has afforded Nike three great advantages:
1. It derives 58% of its revenues from outside the U.S.
2. It pays pennies to hire its work force.
3. Nike uses sweatshop labor to maximize its profits.
Nike could not do better profit-wise using slave labor. On this issue, Sen. Sanders is right.
Posted: QCOline.com July 18, 2019
Copyright 2019, John Donald O'Shea
1. It derives 58% of its revenues from outside the U.S.
2. It pays pennies to hire its work force.
3. Nike uses sweatshop labor to maximize its profits.
Nike could not do better profit-wise using slave labor. On this issue, Sen. Sanders is right.
Posted: QCOline.com July 18, 2019
Copyright 2019, John Donald O'Shea
