NIKE BOYCOTT SPREADS TO ALBERTA
NIKE BOYCOTT SPREADS TO ALBERTA
In 1984 the last Nike athletic shoe manufacturing plant was moved from the United States to the Pacific Rim. In the process 65,000 workers in those plants lost their jobs. The Nike advantage in moving to the Philippines, South Korea, Indonesia and now China and Vietnam, was cheap labour.
While Nike workers in the U.S. were paid between $8 to $11 an hour, Nike found it more profitable to go where the pay was $2.60 for a ten hour day such as in Indonesia. Of course the price for their shoes did not decline correspondingly.
Nike made record profits. It was so profitable in fact that it could launch a multi-million dollar international ad campaign which included high paid endorsements. Basketball Star Michael Jordon was hired by Nike to be it's main spokesman, for a cool $20 million dollars.
During this summers Olympics Nike took advantage of 'ambush' advertising by hiring tennis star Andre Agassi for a reported $100 million. Nike was not an 'official' sponsor of the Centennial Olympics instead it used Agassi, TV ads and its Olympic Web site to make it appear it was part of the 'official' Olympics.
Wanting to appear hip with the grunge and MTV generation, Nike hired beat writer and iconoclast William Burroughs. When asked by a an interviewer why he accepted being in Nike's 1994 TV commercial, Burroughs laughed hysterically and said; "why for the money of course".
Of course these stars aren't the only ones laughing all the way to the bank. Nike CEO Phil Knight earned a tidy $1,650,000 in salary last year while the company made $650 million in profits.
But not everyone benefits from Nike's profits and lavish spending.
Young women workers making Nike athletic products in Vietnam are being paid a monthly wage of $42 (20 cents an hour) while minimum wages in Vietnam a at least $45 per month.
In Pakistan young boys are paid 6 cents an hour for sewing up Nike FIFA endorsed professional soccer balls.
At one of Nike's Indonesia factories workers trying to form a union are arrested by the militia and subjected to torture and beatings in the Nike managers office.
Nike claims that it is not responsible for the actions of it's subcontractors, which are mostly from South Korea. In reality Nike is in control of its subcontractors. Nike dictates the price per shoe and even the cost of operation to its subcontractors forcing them to set high quotas for their workers and to pay low wages.
The Canadian Catholic Church Development & Peace group launched a petition against Nike's labour practices in the Pacific Rim last year. Despite receiving over 85,000 protest cards, Nike refused to meet with Development and Peace to discuss, human rights violations and improving working conditions in Nike factories. Development and Peace offered to provide independent monitoring. in cooperation with local NGO's.
Nike ignored it's critics in North America and developed a new PR ploy: P.L.A.Y.(Participate in the Lives of All Youths). This program saw Nike donating money and sports equipment into athletic programs in schools and community groups. First developed in the United States, Nikes PLAY campaign was launched last fall in Canada with a fund of $1.4 million dollars. Coincidentally at the same time Nike was refusing to talk to Development and Peace.
As part of it's PLAY program, Nike became the corporate sponsor for the NHL's Street Hockey Program. The street hockey program was introduced into an inner city Edmonton Public school in October of this year. While Nike supplied the hockey equipment, and made sure its corporate logo was prominently displayed, the program was endorsed by the Edmonton Public School Board, the City of Edmonton Parks and Recreation Department and the Edmonton Oilers.
In response to Nike's shameless self promotion as a 'concerned corporate citizen' CUPE Local 474, representing the 600 custodial workers in Edmonton's Public Schools, sent protest letters to the School Board trustees as well as the Mayor and City Council.
"We are not against the street hockey program, however NIKE is being hypocritical in its support of children's programs in Edmonton Public schools while exploiting child labour in its shoe factories in Indonesia and Asia." said Doug Luellman, President of CUPE Local 474.
The local provided an information package documenting Nikes ignoring human rights violations in the countries it operates in, exploitation of child labour, failure to monitor it's sub contractors, complicity in union busting and torture of union activists.
The information provided came from several activist organizations in the United States; Campaign for Labor (CLR) rights and the Portland Justice! Do It Nike Boycott group. An 'objective' report by the New York Times on union busting in Nike factories in Indonesia was also included.
Local 474 called on the Board and city to put pressure on Nike to allow for independent third party (NGO) monitoring, and to quit using child labor and supporting union busting'. The local offered to assist the Public School Board in developing an ethical policy for business partnerships with schools.
"Our membership comes from diverse countries, and appreciate their human rights and the right to belong to a union. We firmly believe these rights must be extended around the world" said Luellman. The local endorsed the call for a Nike boycott at it's general meeting in October.
The Local issued a press release and contacted other unions as well as Development and Peace, Challenge for Change, the Centre for International Alternatives and other progressive social action groups in Edmonton.
The Alberta Federation of Labour endorsed the boycott with President Audrey Cormack issuing a letter and press release calling on the public school board, the city and the Oilers to remove Nike as a corporate sponsor.
"Nike's hypocrisy is almost unbelievable"
said Cormack." They're using the hockey program in a cynical
attempt to sanitize their reputation."
The AFL also demanded that a code of conduct be established for dealing with business partnerships on the part of the Public School board.
"Governments at all levels should take a good hard look at a companies record on labour and human rights issues before they decide to do business with them," said Cormack. "If more people and organizations start saying that child labour and low wages are unacceptable, maybe companies like Nike will clean up their acts."
In response to the negative publicity in Edmonton Nike Canada's PR department, which had been silent last year when they received the Development & Peace petition, issued statements to the press. They stated that Nike paid minimum wages in the countries in which they operate and abide by those countries human rights and child labor laws. What they didn't say was that the countries in which they operate have notorious reputations for violating their own human rights laws as a March 1996 report from the US State Department shows in the case of Indonesia.
Nike recently attempted to clean up its reputation by joining President Clinton's Campaign to end Child Labor and use of sweat shops. However a June 1996 Life magazine photo essay detailed the use of child labor in Nike's Pakistan soccer ball factories.
Nike now claims that it was monitoring its sub contractors with an employee monitoring initiative and it has hired the accounting firm of Ernst & Young to report on factory conditions. These reports however are secret and not released to the public.
Both Local 474 and the AFL received letters from City Councillor Dick Mather, a former Chairman of the Edmonton Public School Board. Mather claimed that: "To apply our culture's societal morays and values in the judgment of practices elsewhere may not be a valid reflection of reality, i.e.: in Indonesia, it may not be seen as 'exploitation' by the people of Indonesia. Children are given permission by their families to go to the city and work if they send back money." This is a common myth that borders on racism. Mather failed to see that many new Canadian workers represented by unions in this province also come from those countries.
In a letter to Local 474 the current School Board chairman George Nicholson claimed that poor inner city parents who children were being provided the street hockey program could have "objected or withdrawn their children" if they were 'concerned' about Nike's sponsorship. He failed to say what the Board intended to do about Nike's exploitation of women and children workers, or about the board developing a policy regarding corporate/business partnerships.
While some members of the school board and the city council were pleading ignorance about Nike, CBS aired a special 48 Hours TV program on Nike's factory operations in Vietnam. 15 Vietnamese women told CBS News that they were hit over the head by their supervisor for poor sewing. 2 were sent to the hospital afterward. 45 women were forced by their supervisors to kneel down with their hands up in the air for 25 minutes.
Nike claims that it disciplined these supervisors immediately. But at the shareholder meeting on Sept 16, 1996, Nike CEO Phil Knight minimized the first incident, stating incorrectly that only one worker was struck -- on the arm.
Women workers also told CBS News that they are forced to work overtime to meet a daily quota which is set unrealistically high. Most workers at Vietnam Nike plants are forced to work 600+ hours of overtime per year well above the legal limit of 200 hours per year.
So much for Councillor Mathers excuse that "To apply our culture's societal morays and values in the judgment of practices elsewhere may not be a valid reflection of reality."
Unlike Mather, progressive City councilor's Brian Mason and Michael Phair have called for an investigation and report on Nike and the street hockey program from City Parks And Recreation Department Manager. In a letter to the Mayor and city council Parks & Recreation manager Maria David-Evans states that:
"The Department is reviewing participation in this partnership with the Oilers and the School Board and will determine if the program remains supportable. If we find we can no longer participate in the program, every effort will be made to find alternate sources of support so that this valuable opportunity is not lost to Edmonton's children."
Meanwhile news about the boycott in Edmonton is spreading across the province and across North America. From Nike's hometown, where the Boycott began two years ago, Portland Oregon public school board trustee Joseph Tam wrote a letter to the Edmonton Public School board and city council. In it he states:
"In May, 1996 due to a budget shortfall for the 96-97 school year, we asked the business community for help. With the assistance of Phil Knight, Nike's Chief Executive Officer, $500,000 were contributed to the Portland Public Schools in cash and equipment. I and many Portlanders thanked Nike.
In June, 1996 I learned from Life magazine that Nike's subcontractors in Pakistan employed forced child labour to stitch soccer balls at 60 cents a day. I have also learned of the low wage rates for the workers in Nikes contractors factories in Indonesia and Vietnam.
My two children will get a better education because of Nike's contribution, but at whose expense? Do they get a better education at the expense of children in Asia who do not have the opportunity to go to school and labour at low wage rates. I believe it is morally wrong to accept a charitable contribution which is derived from profits generated partly from forced child labour.
I, as a fellow school board member, am asking you to reconsider the Edmonton School Boards partnership with Nike Corporation. Let us think globally and act locally.
What is charity? Is giving part of what one earns from exploiting the poorest of the poor in Asia to the poor in Edmonton a charitable act? I think not.
…I hope you have the moral courage to resist the allure of Nike's money. Please consider the welfare of all children."
CUPE Alberta Division Convention Endorses Anti-Nike Campaign, March 1997
Edmonton Public School Board Refuses To Hold Nike Hearing
Vue Weekly January 16-22, 1997
January 14, 1997 Board Minutes
The Edmonton Public School Board rescinds motion to hold Public Hearing on Nike.
Public School Board To Reopen Nike Issue. VUE Magazine Dec.19-26, 1996
The Realpolitik of Shilling Shoes. VUE Magazine Dec.19-26, 1996
The Business of Sport. VUE Magazine Dec.19-26, 1996
December 10, 1996 Board Minutes
Edmonton Public School Board Motion to Hold Public Hearing on NIKE.
Which passed by a 5 to 4 vote and was rescinded at the January 14, 1997 meeting
Portions of this article were published in Labour News, December 1996
Nike Boycott Spreads To Alberta is the work and sole property of Eugene W. Plawiuk.
All rights are reserved. Except where otherwise indicated it is© Copyright 1996 Eugene W. Plawiuk.
You may save it for offline reading, but no permission is granted for printing it or redistributing it either in whole or in part. Requests for republication rights can be made to the author at:"boycottnike@hotmail.com"
