Nike company runs Niketown retail store as

Published by admin on

Nike cooperation
was established in 1964 under the
law of Oregon as Blue Ribbon sports and officially became NIKE in 1971. It is a
multinational American corporation. The company headquarter is in Beaverton,
Oregon. Nike is one of the major suppliers of sport shoes and sports cloths and
main manufacturer for athletic equipments  with a income of $24.1 US
billion in 2012 and they have employed for about 44,000 people worldwide . In
2014, the trademark value was US $19 billion that makes it the most worthy
brand in the world in the same business and in 
2017 the brand value was US $29.6 billion. In addition to that, the
company runs Niketown retail store as well as direct selling to customers and
through distributors in more than 170 country around the world . They also
sponsor many athletes and sport teams with high profiles with their trademark
of JUST DO IT. They contributed in the development, design, international
marketing and selling of their products. Moreover, almost all the footwear and
clothes are produced outside the US while the other products and equipments are
produced inside the US.

Nike is having contracts
around the world with almost 700 shops and about 45 offices  outside the United States. Most of Nike
factories are located in  Asia,
specifically: China, Indonesia, India, Taiwan, Thailand, Vietnam, Malaysia and

Nike provides a wide range of
different sport products. Running shoes was their first product they have. Now
they have shoes, shorts, cleats, shirts, etc. for a large number of sports. The
company produced a new product line which was introduced later in 1992. The
company  recently cooperated with Apple
and produced Nike+ which monitors the performance of the runners with a device
in the shoes that is  linked to the iPod

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now



·      To know Nike labor law
practices against their workers.

·      Study the working conditions
at Nike factories.

·      Study how Nike factories uses
children to work for them.

·      study different labor law in
different countries where Nike factories exist 







Nike have
been providing poor working conditions and offering weak wages for the workers.
Nike have shifted their factories to the third world countries to hire
employees and pay them a less wages. The third world countries they’ve been
working in are Vietnam, China, South Korea and Taiwan these countries has a
high population and Nike have been working in those countries to find more manpower
with the less amount of wage they can pay which is totally fine but the thing
is they’ve been working under a minimal standards which affects the workers.
There are many standards that Nike have avoided and been working against it
that can affect the worker and harm them.

Nike started
to move its production from the headquarters Beaverton, Oregon because of the worker
charge so they can produce more products with the less amount of money paid.

Nike have
lowered the human rights standards just so they can increase and make more
profit. Just so they can make more profit they paid the workers like slaves and
forces them to work overtime hours and abuse. Some said that Nike don not
represent what is wrong in sports but also everything wrong in the world.

Nike is
using abusing and unsafe conditions.

Nike factory
in Indonesia didn’t pay their workers for about 600,000 hours of overtime
working for almost two years.

Nike have
been paying the workers 3$ to produce 300$ worth of of shoes, and in 1990’s
faced a domestic investigations accusation over hiring underage labors that
shouldn’t be working in a manufacture places. After discovering that they
placed rules that they shouldn’t hire underage workers and not to fire the
underage ones that been working before discovering the issue but Nike have
ignoring the law and hired more of the under aged workers.

 Nike almost
lost its popularity everywhere. Before two decades the company was dealing with
a very abusive labor practices while using 
factories outside the  United
States because its more cheaper than the factories inside the United States.
When Nike reported about their  workers
wages earning that is for about 14 cent per hour the public was shocked. The
fact that Nike is abusing their workers has lasted for many years.

In 1998, when the sales of Nike declined the company started
to lay the workers off. Since that time Nike was very honest about the labor
issues they are facing and said that they are not perfect. Nike products have
become the meaning of low wages, workers abuse and forced overtime. At the same
time they know that the customers do not want to have and buy any product has
been made under such conditions.  





Sweatshops are the places where the employees do
not work in  a safe and secure working
environment or conditions. Nike forced the women workers to run around the
factory just because they weren’t wearing the regulation shoes and many of them
fainted while they were running. Also, in Vietnam they hit them because of poor

Vietnam labor watch, stated that the factories Nike
has a contract with them violated the minimum wage law as well as the overtimes
in 1996, but Nike says that these practices have been stopped since that time.
Nike faced a lot of judgment about their poor working conditions and unsafe
environment and how they use cheap overseas employees in their factories.

many colleges and universities have been taking up
campaigns about this issue specially the anti-sweatshops groups.

In 2011, Nike documented that some of their
factories which produce converse products don’t meet the standards of the
company about the employees treatment. And articles of Associated Press stated
that the workers of the company in Indonesia are having continues abuse from
their supervisors.

“The sweatshop
perception was one of the biggest challenges Nike has faced,” (Ashley 2015)


Child labor

Many criticism faced Nike during the 1990s because of using
young people and children to work in the factories they have contracts to
produce footballs. The company tries to reduce and stop these actions and
practices but at the same time they still having contracts with companies that
having difficult and inadequate monitoring and organizing which makes it very
hard for them to make sure that they are to hiring children and use them in the

BBC documentary showed about the conditions where child
employees and inappropriate work environment in some factories in Cambodia Nike
use in 2001 and it focused on girls worked for all of the week and for about 16
hours per day.

In Pakistan more than 200 children young as 4 years and 5
years old are working in the production of the footballs of Nike. On the other
hand, Pakistan is having laws against or about child labor but the government
is taking very little actions to solve these problems.


China factory

In 2014, China faced a big and huge hit in the shoe factory at Yue
Yuen which works in the production for Nike. Where Yue Yuen didn’t pay for the
employees 40.82 US Dollars/250 Yuan  per
month as 3000 Yuan is the avarage
or mean salary in Yuan. Also, the factories hire
70,000 of the people and these practices have been there for about 20 years.


China labor

Apart from the improvements that has been done in the
worker right law in China the company says that there is still many big
problems Nike is facing and the managers are not meeting the standards of Nike.
The problems of the footwear and cloths are listed in their first companies
responsibility records to focus on China including insufficient management,
overtime and the workers who use fake documents to get a job in the company.

As China is very important to Nike where one of every three
pairs of the shoes is made in China. The company have contracts with 180
factories where they employ for more than 210,000 people in China and most of
them are young girls who moved from their villages into the city to work. All
the reports shows continued shortage from Nike about the labor rights. The
factories they have still in the countries where people can’t join them or
managers don’t meet the workers needs.

Susan Aaronson, a research professor said that the company
is having a lot of environmental improvements and other improvements that the
company made in China. But there is still labor concerns will be there in China
for a while. And added that all incentives for the companies and not to improve
the labor law in China.

After many years of the pressure from other countries on
China to make improvements about the labor legislation, China made new laws to
improve the rights of the workers.

One of the laws set high standards in the contracts to the
labor, the use of part time workers, workers layoff at the time they want and
better employment conditions. The second law states that there should be
anti-discrimination protection for the workers in the factories who came from
other countries and who have any type of diseases.

The reports state that Nike is having problems in their
contracts as well as that the management not implementing any moves and
understanding Nike’s standards.

 The company face a
lot of cases were the workers use fake identifications to get a job in the
factories. After conducting a self assessment program for the employees they
found that almost  167 of the workers are
under the age to work but now they are 18 and older and there are more than
1000 cases of the workers are young and under 18 but company had fake
information about them on their identification.

The company said that improving the workers and labor
conditions is one of their main priorities for them.   





Nike abuse in Indonesia

In 2011, the workers at the factory in Pou Chen Group,
Indonesia started to rioted and complain against the physical and mental abuse
happening in the factory. Moreover, the employees are working for $0.50 hourly
wage which is not enough for living of even having good food. The worker in
this factory can’t speak or object about the situation or else they will be
fired . As one of the workers was fired after she reported and spoke about the


Labor law violation in Vietnam

There is many concerns about the company labor practices in
Vietnam. Including the low wages, working environment and health and safety
laws in the company. Nike do have a code of conduct but it is not working in Vietnam.   

90 percent of the workers in Nike factories in Vietnam are
women between the age of 15 and 28. They complaint about the unlivable or low
wage they get from the company. The daily wage they get is $1.60 and they need
$2.10 to have three simple meals in a day. The company make them choose whether
to eat a balanced meal or to pay rent for their rooms. Most of the workers get
help, food and money from their families. And the women cannot go back home
because they don’t have enough money.

The factories managers are humiliating and abusing the
workers verbally and physically. In several factories the workers can’t go
bathroom more than one time per 8 hours and they can’t drink water more than
two times in the shift. Employees are working for more than 80 hours overtime
so that the company meet high quantity which makes it Nike’s factories current
norm. This shows that Nike unable to enforce their code of conduct.

Nike factories in Vietnam do not follow health and safety
standards of the company and they didn’t implement any of the safety

labor law state that workers can agree to work overtime for 4 hours per day
which is 200 hour a year. But in Nike factories the workers are forced to work
overtime for 500 hour a year.

Vietnam labor
watch says that Nike is not paying the minimum wages as well as the overtime
and training wage . It is violating the law.

Workers with
full time job are receiving less than $38 and the minimum wage in Vietnam is $
45. Nike says that they are not doing these practices but actually  they are still there.

The working
condition in the factories is full of fear of punishment, excessive overtime
which makes the workers weak. workers are losing weight and their health is


Recommendations to Nike

On the other hand Nike was recommended to make some shifts
in its practices. It was ensured that the company had the will to modify  its practices and exercises to avoid violations
 of human rights. It is essential that
the company should change their way treating the workers to show the workers
respect and dignity as any other American employee. The laws are protecting the
American workers rights with their pursuit of life and happiness.

The following were 1997 recommendation of how the
company should do and change their way with the labor practices.

Begin to pay
the legal minimum wage for the workers and give compensation to the workers who
have been not paid for their rights.

Return all
illegal deposits taken from workers.

Eliminate all
forced overtime that violates the acts of law.

Stop the
regulation that prohibits the workers from talking to each other.

Stop forcing
morning time exercises.

health care and child care.

Rehire the
workers that have been fired for injustice reasons.

Stop hiring
under 16 years old children’s and offer them guaranteed jobs when they reach
legal age of working.

Make sure
that all chemical are written in a language that labors could understand

Nike should
make sure that they’re paying the labor what they deserve and not paying below
the minimum wages.



Nike’s Response

When Nike’s top managers got the 1997 reports about the
human right and labor abuse that happened at the factories in Asia. It was
shown that the managers  going to make
some actions about it to avoid labor violations. Phil knight was interrogated
to his critics in 18-5- 1998 he made up a speech that included discussions
about the actions will be taken to develop and improve the conditions and
situation the company has went through in the overseas factories. He showed up
with new laws in Nike’s factories.

The first thing he made was to stop using a toxic glue
called toulene. It was found that it causes harmful effects to employees that
are not fully guarded from poison. They created a water glue that has no side
effects and much more safer to be used, while it’s not the perfect glue for all
the shoes.

The second thing he came up with is to increase to
minimum wage of workers in the shoes factories up to 18 years and 16 is the
minimum age for equipment and apparel to 16. Additionally he has announced that
they’ll be educational programs in the factories, middle school and high school
equation courses available for the whole employees in Nike’s footwear factory. Workers
there are given the classes for free during the time they don’t have work , the
factories will take courage to raise the payment for the workers who complete
regimen. In 2002 factories will be having qualified workers.




All in all, as the abuse problems has spread dramatically throughout the world Nike tried to
have policies to solve these issues. But unfortunately they didn’t take actions
as fast as the world hoped. Nike seems not willing to change in term of the low
wages they give to the workers to have the basic things any humane need and
give the workers all of their rights. This will affect Nike’s capacity to
maintain their cheap labor force which means economically they are not
overcoming the problem fast. In this report I have discussed about Nike labor
law and practices in several countries in Asia and I have focused on the
sweatshops of Nike,  the child labor in
the factories, gave recommendations to Nike to solve their prblems and talked
about how the company respond to the recommendations and laws.    

In order Nike overcome its problem they had to do many
things such as increasing wages for the employees and offer the right
environment with taking care of all the safety and health that workers need.
They should found an immediate solution for all the problems facing their
factories and make sure that their workers are treated well and getting well
paid. Nike should’ve known that it’s important that they keep their business
ethics in order to keep the brands reputation. The company should keep on improving the workplace and
provide the proper environment for workers and keep on checking whether the
conditions are suitable for workers regularly.

Categories: Management


I'm Iren!

Would you like to get a custom essay? How about receiving a customized one?

Check it out