Oregon daily emerald., April 13, 2005, Page 5, Image 5

Nike reveals names, locations
of more than 700 factories
BY RUKMINI CALLIMACHI
THE ASSOCIATED PRESS
BEAVERTON — After years of criti
cism over its labor practices abroad,
Nike Inc. is disclosing for the first time
the names and locations of more than
700 factories that produce its sneakers,
apparel and other products.
Industry experts said the disclosure,
included as part of the company’s cor
porate responsibility report, makes the
sneaker giant the first major apparel
manufacturer to voluntarily disclose its
entire supply chain.
In the report released today, Nike
also acknowledges that factories vyith
which it contracts to produce goods
have harassed workers and forced
some to work overtime.
For years, activists have demanded
that Nike and other major companies
reveal where factories are located so
independent observers could assess
the labor conditions.
Corporations have been reluctant to
do so, arguing that the plants are
where the company’s trade secrets are
laid bare and that advanced products
could be leaked to rivals.
Some Nike critics welcomed the
disclosure of the supplier locations
because it challenges others to do
the same.
“This is a revolution,” said long
standing Nike critic Neil Kearney,
general secretary of the Internation
al Textile, Garment and Leather
Workers’ Federation, which repre
sents 10 million workers. “Now the
world can see if the policies Nike
claims to be implementing are actu
ally being implemented.”
While Nike might improve its pub
lic image, some critics contend the
company has a long path to fully meet
its corporate responsibilities.
Labor activist Jeff Ballinger viewed
the report with cynicism. “It’s good in
formation to have,” he said. “But I’ve
always viewed their corporate respon
sibility work as trying to put the best
face on the situation and not necessar
ily dealing with the issues workers
have raised.”
In its 108-page corporate respon
sibility report, Nike discloses the
names of 124 plants in China
contracted to make its products,
73 in Thailand, 35 in South Korea,
34 in Vietnam and others elsewhere
in Asia, as well as in South
America, Australia, Canada, Italy,
Mexico, Tin-key and the United
States.
While the competitive risk still ex
ists, Nike spokesman Lee Weinstein
said it’s “something we’re willing to
take on if this disclosure will in fact
move the industry forward in address
ing some of these endemic issues. ”
The “endemic issues” are past alle
gations of sweatshop conditions.
Nike’s report acknowledges that
those issues still exist in some
overseas operations.
According to the report, Nike audit
ed 569 factories in 2003 and 2004 and
found abuses it has previously
identified. Monitors found cases of
“abusive treatment” — either physical
or verbal — in more than a quarter of
its South Asian factories, and between
25 percent and 50 percent of the con
tract factories in the region restrict ac
cess to toilets and drinking water dur
ing the work day.
The monitors found that in more
than half the South Asian factories and
in more than 25 percent of
factories overall, the normal course of
business led to work hours in
excess of 60 hours per week. In more
than one-tenth of all the plants sur
veyed, refusal to work overtime led to
a penalty of some kind, the report said.
===ii^iiziizizizzzrzizzzzzz: i
Nike footprints on six continents
Nike Inc. revealed the names and addresses of its 705 factories.
China has the highest number with 124 plants. Forty-nine factories
are in the United States.
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49
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Factories ®
• 1
O 5
O 25
O50
O100
Albania
Argentina
Australia
Bangladesh
Belgium
Brazil
Bulgaria
Cambodia
Canada
Chile
China
Colombia
Dominican
Republic
Ecuador
Egypt
El Salvador
Fiji
o
%
o°
1
7
9
5
1
18
8
1
10
2
124
2
1
1
4
6
1
Greece
Guatemala
Honduras
Hong Kong
India
Indonesia
Israel
Italy
Japan
Jordan
Lithuania
Macau
Macedonia
Malaysia
Mexico
Moldova
Morocco
New Zealand
1
1
8
9
20
39
6
13
22
3
1
3
1
33
20
1
4
1
--X
(124) 6
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f o
Pakistan 3
Peru 1
Philippines 4
Portugal 20
Singapore 2
South Africa 7
South Korea 35
Spain 5
Sri Lanka 25
Switzerland 1
Taiwan 19
Thailand 73
Tunisia 9
Turkey 26
United Kingdom 5
United States 49
Vietnam 34
SOURCE: Nike Inc.
AP
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