Case Study - Nike

Controversy About Nike

Over time, there have been many claims about the way in which Nike manages their factories in other parts of the world. Some of the claims which have been made are:

Low Wages: In 1994 it was claimed that Nike was paying workers in Vietnam US$0.20 per hour to make shoes. This amounted to US$1.60 per day, when it cost an average of US$2.00 to pay for three basic meals. Also, the minimum wage in Vietnam was reported to be US$45 per month, and Nike was paying around US$37.00.
Corporal Punishment: In 1996, CBS news in America reported that fifteen women working in a Nike factory in Vietnam had been hit by their supervisor for poor sewing. Later in the same year, one hundred workers in Taiwan were reportedly forced to stand in the sun for half an hour because they spilled some fruit juice.
Sexual Abuse: Even a harsh Nike critic would agree that this was not a broad claim. However, it is true that a Korean supervisor working in a Vietnamese factory fled the country after being accused of sexually assaulting two female workers.
Working Conditions: The most common complaint against Nike is in reference to the conditions in which their factory workers must complete their daily tasks. For example, it has been claimed that workers are only allowed one toilet break during each eight hour shift, health care facilities are inadequate, and poor ventilation sometimes causes employees to faint.
Lack of Investment: If Nike (and other multinational companies) were working in their own country, it is claimed that they would be far more likely to offer training to their employees. Many also suspect that Nike would respond quickly when calls to update the machinery were made. This lack of investment in both capital and labour resources has been severely criticised.

In response to these criticisms, it is important to note certain key points. The first is that all of the claims made about Nike are now quite old – it is very difficult to find a current problem. This reflects the fact that things have certainly changed over the last fifteen years. You should also note that while there are many claims against Nike, there are also many claims against firms which have not started using international labour to complete their manufacturing. With many hundreds of thousands of employees all over the globe, it is highly likely that problems will occur from time to time.

And most importantly, these opinions are often expressed by people who have never even visited a Nike factory. Nike is quite open about accepting people to visit their factories in many parts of the world, and when people do visit they are often surprised at what they find. If you can track down the documentary Globalisation is Good you will be able to see an actual Nike factory in action. The most important people to consider are the people who actually work in these factories. Many surveys have been completed, and we will review some of the key points on the last page of this section.

Current Page: Controversy About Nike