Cecily Zamora
Nike has been accused of breaking labour laws in Vietnam as recently as 1996. The company has been criticised for its use of sweatshops and child labour, with protests taking place in major cities such as Los Angeles, Washington, DC and Boston in the 1990s. In 1998, Phil Knight responded to critics by announcing several new laws that Nike factories around the world would be required to obey.
| Characteristics | Values |
|---|---|
| Minimum wage laws | Violated in Vietnam as late as 1996 |
| Overtime laws | Violated in Vietnam as late as 1996 |
| Worker treatment standards | As of July 2011, two-thirds of factories producing Converse products did not meet the company's standards |
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What You'll Learn
Child labour laws
In the 1990s, Nike was criticised for its use of sweatshops and child labour. Protests took place in major cities such as Los Angeles, Washington, DC and Boston. In 1996, *Life* magazine ran a report on child labour that included a photo of a 12-year-old Pakistani boy sewing a Nike football.
Nike has since introduced a minimum age of 16 in its factories, but this does not apply to countries where workers are legally allowed to work at 14. This has been criticised by reformists, who argue that even if it is legal for a child of 14 to work in certain nations, it is still considered improper child labour and should not be condoned or implemented in factories of American corporations.
Nike's Code of Conduct requires that workers must be at least 16 years old, or past the national legal age of compulsory schooling and minimum working age, whichever is higher. Workers between the ages of 16 and 18 cannot be employed in positions that may be hazardous, such as working with chemicals or heavy machinery, nor can they work at night.
Nike has admitted that it cannot guarantee that its products will not be made using child labour. The company has responded to cases of child labour and employs a team of people to inspect its factories. Maria Eitel, Nike's vice-president and senior adviser for corporate responsibility, has said:
> We believe that only by being truly transparent and sharing what we have learned can we be a successful, global company while learning and improving as a corporate citizen.
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Minimum wage laws
Nike has been criticised for contracting with factories in countries such as China, Vietnam, Indonesia and Mexico. These factories, known as 'Nike sweatshops', have been accused of violating minimum wage and overtime laws. As late as 1996, Vietnam Labor Watch documented that factories contracted by Nike had broken minimum wage laws in Vietnam.
Nike has responded to these accusations by stating that this practice has been stopped. However, as of July 2011, the company admitted that two-thirds of its factories producing Converse products still did not meet their standards for worker treatment.
In response to the criticism, Nike introduced several new "laws" that its factories worldwide were required to obey. These laws aimed to improve conditions in the overseas factories, but it is unclear whether they specifically addressed minimum wage violations.
Nike's use of sweatshops and violation of minimum wage laws has sparked protests in major cities such as Los Angeles, Washington, DC, and Boston. The public outcry highlights the importance of ensuring that workers are paid a fair and legal wage, regardless of the country in which they are employed.
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Overtime laws
Nike has been accused of breaking overtime laws in Vietnam as late as 1996. This was due to the company's use of sweatshops and child labour in countries such as China, Vietnam, Indonesia and Mexico.
In the case of Nike, the company was accused of violating overtime laws in Vietnam specifically. While the details of Vietnamese overtime laws are not readily available, it is likely that they set similar limits on working hours and overtime pay as other countries. Nike's use of sweatshops and child labour may have contributed to these violations, as these practices often involve long working hours and low wages.
It is important to note that Nike has denied these accusations, claiming that any violations of overtime laws in its contracted factories have been stopped. However, as of July 2011, the company admitted that two-thirds of its factories producing Converse products still did not meet its own standards for worker treatment. This suggests that overtime law violations may have continued even after Nike's official response to the issue.
To prevent future violations, Nike should take steps to ensure that its contracted factories comply with the relevant overtime laws in their respective countries. This includes setting clear standards for worker treatment, regularly auditing factories to ensure compliance, and taking swift action to address any violations that are found. By doing so, Nike can work towards improving the conditions of its factory workers and upholding the labour laws of the countries in which it operates.
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Worker treatment laws
Nike has been criticised for its treatment of workers, with protests occurring in major cities in the 1990s over the company's use of child labour and sweatshops. The company has been accused of contracting with factories in countries such as China, Vietnam, Indonesia and Mexico, where labour laws are less stringent.
In Vietnam, factories contracted by Nike have been found to violate minimum wage and overtime laws as recently as 1996. Nike claims that this practice has since been stopped, but as of July 2011, the company stated that two-thirds of its factories producing Converse products still did not meet its standards for worker treatment.
In response to criticism, Nike introduced several new "laws" that its factories worldwide were required to obey. These laws aimed to improve conditions in overseas factories, but it is unclear what specific measures were implemented and whether they were effective.
Nike's treatment of workers has been a significant source of controversy, and the company has faced ongoing pressure to improve labour conditions and ensure that its suppliers comply with local labour laws and international standards.
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Factory conditions laws
Nike has been criticised for contracting with factories (known as Nike sweatshops) in countries such as China, Vietnam, Indonesia and Mexico. Vietnam Labor Watch, an activist group, has documented that factories contracted by Nike have violated minimum wage and overtime laws in Vietnam as late as 1996, although Nike claims that this practice has been stopped.
In 1998, Phil Knight responded to his critics by outlining several new "laws" that Nike factories throughout the world were to be required to obey. As of July 2011, Nike stated that two-thirds of its factories producing Converse products still did not meet the company's standards for worker treatment.
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