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In July 2007 a Channel 7 news program alleged forced labour and appalling living conditions in a Nike supplier factory in Malaysia.
September 2008
Success for Nike workers in Malaysia
Thanks to all of you who wrote to Nike in response to the story Channel 7 aired in August.
This is what you helped to do:
- The Bangladeshi workers (featured in Channel 7 coverage) have been moved to apartments. Workers from Vietnam and Myanmar (Burma) are also being moved to similar apartments. Nike maintain none of the accommodation was acceptable but the Bangladeshi accommodation was the worst and was ‘temporary’ since March last year
- Workers now have free access to their passports whenever they want them or they can keep them themselves
- All current migrant workers will be reimbursed fees associated with their employment in the country they are from and any fees associated with working in Malaysia – to put this in context – the Bangladeshi workers paid about 3,000 AUD to employment agents in their home countries. This is about a year’s wages which is now being reimbursed to workers
- Going forward, any and all fees associated with employment will be paid by the factory as a cost of doing business
- Any worker who wishes to return home will be provided with return airfare, regardless of the point they are at in their contracts
- Nike is not going to leave the factory – they are going to stay and try to fix the problem
- Brave workers who spoke out will keep their jobs (if that is what they want) and will not be discriminated against
- Nike will review their entire supply chain in Malaysia and ensure there are no other violations and ensure these recommendations are implemented throughout their supply chain
This is a great result – thanks again to all of you who took action!
For more information on how Nike should addresses systemic violations throughout its supply chain see: Offside! Labour Rights and Sportswear Production in Asia.
We continue to work with sportswear manufacturers to ensure they respect worker’s rights. We need your support to continue to effect change.
July 2007
Jobs at risk for 14,000 Indonesian factory workers
In July 2007 Nike confirmed it was withdrawing production orders from the PT NASA and PT HASI factories in Indonesia. These factories have been producing for Nike since 1986. This business relationship of 18 years was set to end abruptly, leaving 14,000 workers fearing for their livelihoods. Nike has since agreed to continue sourcing from both factories for at least the next one and a half years.
