ACADEMICS STUDYING NIKE, REEBOK, and ADIDAS - Thailand SUBCONTRACT FACTORIES
FOR PART II - On Carnival, Spectacle and Festival in Thailand
Figure 1: Carnival Meets Spectacle at Thailand protest of Tigers Woods (Source, Thai Labor Campaign)
NEW We also want to find comparable factories where working conditions are better. For example,
Contact dboje@nmsu.edu at Academics Studying Nike and Reebok and Adidas, if you know where they are.
El Salvador, Guatemala, Honduras
QUICK WAY TO MOVE ABOUT THIS SITE Pull Down Choice and Go
Go to Adidas Go to Nike go to Reebok
Latest News:
2 Aug 2007 - Nike pulls out of another Thailand factory. "Union Footwear, which is an original equipment manufacturer of foot-wear for many brands in-cluding Nike, employs 2,414 workers... Nike is now working with over 60 contract factories for footwear, apparel and equipment. Nike was among the clients of Thai Silp South East Asia Export Import, which recently shut down its apparel plants in Samut Prakan due to foreign exchange losses." THE NATION source
"On 29 October 2004, three executives of a recently formed union at MSP Sportswear in Thailand were dismissed. Since then, the remaining nine executives in the plant have been subjected to constant harassment and have been prevented from carrying out their union activities. In the period since the dismissal there have been several meetings between the union executives, the local organization supporting them (CLIST), government officials and the main buyer, Nike. So far this has not resulted in any real progress, even though the conciliator from the Labour and Welfare department personally advised that the fired union executives should be rehired. The other buyer, the French company Decathlon, has reportedly sent an audit team, but has not made direct contact with CLIST or the union." (source: Nosweat.org.uk
FACTS: It is estimated that there are over 70,000 workers
that produce sport shoes and apparel for Nike in Thailand." There
is a strong and violent strategy being used to stop workers from
organizing. In some cases, workers were laid off from the factory and
the work was subcontracted to factories where workers receive lower
wages and have no legal protection." Thailand's public debts
at the end of December, 2000 totaled Bt2.80 trillion or 55.78 per cent
of the country's gross domestic product (GDP).
Note many of these postings come from THAI LABOR CAMPAIGN - http://www.thailabour.org/ in their email alerts.
Recently, factories producing for Nike in Thailand have been shifting production to subcontractors and non-union facilities and to the provinces where wages and benefits are even lower. For example, unionized workers formerly producing for Nike at the Thai Iryo Garment factory in Rangsit were laid off while Nike production shifted to the Garment Tech factory in Bangkok and VT Garment in Sathupradit. Many workers have been laid off from the unionized Thai Iryo Garment and Par Garment factories just to wind up producing the same products for subcontractors and receiving lower wages without legal protection (Thai Labour Campaign, Coordinator: Junya Yimprasert, November 14, 2000).
This is the Shell Game
- Closing, moving, or when there is no choice, upgrading a
factory's conditions in response to worker or consumer protest or
media exposé reporting. The Shell Game is played with accomplices.
The Global Alliance and Price Waterhouse Coopers pretends to be
monitoring working conditions and Code of Conduct compliance in Nike
factories throughout the world. As we see in Exhibit A, in
Thailand, the factory in the Shell Game is relocated to provinces
where more compliant and less organized factory workers will not be
able to vocalize and dramatize their work conditions. As depicted in
Figure 1, the workers are resisting the Shell Game, with carnivalesque
street theater. The worker in the black hood is taking a gold swing to
show parody Tiger Woods. “We are calling on Tiger Woods to address
the plight of Thai workers because he is a Nike spokesperson; this has
nothing to do with the fact that he is part Thai,” said Junya
Yimprasert, coordinator of the Thai Labour Campaign.
EXHIBIT B -
Nike in Thailand - Conditions at the Par Monthinee garment
factory in Korat (Interview report) by Karuna Durian and Piya Pangsapa.
The report is in interview with one worker who details health and
safety, forced overtime and other issues of concern. See Clean
Clothes Campaign Report - http://www.cleanclothes.org/companies/nike00-03-15-4.htm
The Par Monthinee garment factory employs more than 300 women and is located in Nakorn Rachasima (Korat). Par Monthinee is a subsidiary of the Par Garment Company which also owns a factory in Rangsit (near Bangkok) and the Par Consortium factory in Ubon Ratchatani (also in North-Eastern Thailand). Nike is one of several companies which order(s) clothes from Par Monthinee. Often Par Monthinee subcontracts all or part of these orders to the Par Consortium factory. This was the case with the most recent Nike order which was completed in August/September 1999.
EXHIBIT C - The Par Garment Factory
Extract from research report on brutal suppression of the right of workers to organize in the Par Garment factory in Thailand at http://www.web.net/~msn/3nike18.htm (Source NikeWatch Campaign of Australia).
UPDATE December 28, 2000 -
The Par Garment workers have proved to Thai Labor movement that THEY WILL NOT GIVE UP!
- In June, 137 workers settled the case on unpaid bonuses for 1997 and 1998 with the company at the labor court and that the company agreed to pay 90% of the two years unpaid bonuses to these workers. (at the beginning the company offer only 40%).
- On 18 December, five union committee won the case at the supreme court. The company is ordered to reinstate all the five workers.
- On 28 December, 24 union members that were facing with unlawful dismissed since May 25 1998 (at the same time as the five union committee members), won their case at the labor court, and the company was order to pay full compensation to every workers (an average amount of 53,000 baht (US$1,250)).
EXHIBIT D- Global Alliance/Nike Press Release
What is Global Alliance? It is a joint initiative of the World Bank, private foundations and US corporations such as toy maker Mattel and sporting goods company Nike, on September 5th, 2000 released a study of 3,800 Thai and Vietnamese workers in 12 footwear and apparel factories run by Nike. September 6th, 2000 the press release became an article in the Financial Times, http://www.theglobalalliance.com/content/financial_times_sept_6_00.cfm
According to Thuyen Nguyen -- Vietnam Labor Watch, "Basically,
[Global Alliance] provides the empirical research for Nike to backup
Nike's views of the workers at Nike factories. Quite an expensive
venture for some basic research."
| Progress
Report Winter 2000 from Global Alliance Thailand for more see http://www.theglobalalliance.com/content/winter_2000_progress_report.cfm |
EXHIBIT E - Clean Clothes Campaign commissioned a study to verify the Global Alliance report.
| Source http://www.cleanclothes.org/companies/nike00-09-15.htm
METHODOLOGY CRITIQUE OF GLOBAL ALLIANCE STUDY "Approximately 10% of workers at five Thai
factories producing garments and footwear for Nike
were surveyed by the Chulalongkorn University Social
Research Institute (CUSRI) as part of the Global
Alliance for Workers and Communities project, an
initiative that includes Nike, the World Bank, the
International Youth Foundation, and others. When these
research findings were recently released, the press
has reported that on the whole "workers are
satisfied with workplace conditions" (Financial
Times, Sept. 6, 2000). What they fail to report is how Source http://www.cleanclothes.org/companies/nike00-09-15-1.htm Junya Yimprasert
...The researchers refused to disclose any information on this research, claiming that as soon as they finished their work, the Global Alliance took all the primary sources data and all the files from their computers. The CUSRI had to sign an agreement with the Global Alliance that they would not publish any of the information from the study; if CUSRI violates the contract they will have to pay a penalty.CUSRI was not aware of labour disputes at Nike's contract facilities in Thailand and other countries around the world. If they had known, the research team might have inquired about labour violations and suppression in the factories. ... The company threatens workers that there will
be no orders if the workers complain about their
problems to outsiders. These kinds of threats are very
powerful control mechanisms exerted over
workers. |
Press
here for full paper "Theatrics
of Control" by Boje (November 28 , 2000).
It is estimated that there are 70,000 workers producing Nike products in Thailand. Additionally, thousands of Thais are employed as migrant laborers at factories producing for Nike in Taiwan. Thai workers receive only enough to survive each day. Why would Thai workers protest Tiger Woods?
Tiger Woods signed a sponsorship agreement in September with Nike for 5 years worth $100 million. With all winnings and endorsement earning this year, Tiger Woods will get $55,000 a day. A Thai worker would have to work for 14,000 days or 38 years to receive the same amount.
Press here for full paper "Theatrics of Control" by Boje (November 28 , 2000).
HEADLINE: Tiger Woods faces anti-Nike protest during
visit
to Thailand - DATELINE: BANGKOK, Nov 14, 2000
The world's top golfer Tiger Woods was Tuesday forced to run the
gauntlet of about 100 sacked Nike employees who staged an angry
protest inside the lobby of the Bangkok hotel where he is staying.
Woods, who arrived in the Thai capital Tuesday to play
in the Johnnie Walker Classic, was leaving a ceremony inside the
building where he was conferred with an honorary doctorate in sports
science.
Woods, whose mother is Thai, would have been expecting a warm welcome
to "The Land of Smiles", where he has been hailed as a hero
during past visits.
But this time he had to be escorted through the noisy protesters by a
phalanx of bodyguard and officials as he returned to his room after
the brief ceremony.
Looking somewhat taken aback, he put his head down and walked past
without making any comment as the protesters shouted questions at him.
Organisers said Woods, whose contract with Nike nets him 100 million
US dollars over five years, should listen to their claims that they
have been unlawfully dismissed by Nike in Thailand.
"He should be able to really understand why that company can give
him so much money," said Thai Labour Committee official Lek Junya
Yumprasert.
"It would take the workers here 72,000 years of work for Nike on
their wages here to make that money" she said.
The demonstrators said they were part of a group of 1,016 workers who
were still waiting to be compensated a total of 41 million baht
(932,000 dollars) after being laid off by Nike in September.
Carrying placards reading "Tiger Woods putting around workers
rights" and "Tiger Woods please help us" the workers
gathered in the foyer of the Shangri La hotel and resisted attempts by
hotel staff and Woods' entourage to shift them.
Some of the group said they were currently camping out in the basement
of the Ministry of Labour and Social Welfare, waiting for the
compensation money to come through.
Nike, which labour unions say employs roughly 70,000 Thais, has
frequently been accused of ill-treating its Asian employees. It is
charged with subjecting them to inadequate pay and poor working
conditions, as well as banning union membership.
During the degree ceremony, Woods said it was a "tremendous
honour" to be recognised for his sporting and charitable
achievements.
The 24-year-old thanked Kasetsart University for the chance to realise
his dream of holding a degree after his blossoming golfing career
forced him to leave Stanford University before completing his studies.
"This is a humbling experience" he said as he accepted the
award.
"No matter whether you're in school or traveling or pursuing your
own business pursuits, the thirst for knowledge is always
important."
November 16, 2000 - "There is a strong and
violent strategy being used to stop workers from organizing. In some
cases, workers were laid off from the factory and the work was
subcontracted to factories where workers receive lower wages and have
no legal protection. From the interview with Thai workers that worked
for Pou Chen in Taiwan (that produce Nike shoes) they said that "
We can tolerate the hardship, but we cannot stand the behavior of
supervisors that are very cruel and like to yell and scold at us
unreasonably" (Source).
Many women workers also facing with urination pain “I was so much in pain and suffered from kidney infection because I always suppress my urination. I requested the supervisor to send me to the hospital, but I have to wait for nearly one hour until there were two more sick workers to fill the car before it can take off to the hospital. I have to stay in the hospital for six days without any visit from the company management. During my sick leave, the company paid only 50% of my wages. As soon as I returned to work the company forced me to work over-time until 11 PM or midnight every night, although I tried explaining to the supervisor that I need to rest but, however, the supervisor forced me to work and I had to work.”
Please contact the following Kuk Dong clients and demand that they put pressure on management to respect workers rights! Firing union organizers and giving them severance pay does not support workers' right to freedom of association.
CONTACT NIKE: The U.S./Labor Rights in the Americas Project (U.S./LEAP) reported on Jan. 26th that it is NOT TRUE that Nike does not have production going on at Kuk Dong. They report that sources in Mexico have informed them that back-order production for Nike is still going on at the factory. Contact Nike and remind them of their responsibility to push for just resolution to the labor dispute at Kuk Dong. Giving workers severance pay to settle a labour dispute is not the answer! Remind them that the FLA code stipulates that Employers shall not offer or use severance pay ... as a means of restricting union formation or union operations.”
In Europe contact Hannah Jones, Nike's European Director of Corporate Responsibility Nike Europe
A survey by Washington D.C.'s Global Alliance for Workers and Communities of 3,800 workers in factories run by Nike subcontractors in Vietnam and Thailand found most were satisfied with workplace conditions, although some expressed concern about health and safety problems at the factories, including fatigue and poor ventilation.
These companies subcontract from Nike, Adidas, and Timberland, for which the main markets are the United States and Europe.
The report concludes that "Nike, Adidas and Gap must pressure the Par Garment Company to withdraw the court case against the thirty union committee and its members and allow these workers to return to their former positions. Nike and Reebok should ensure that the workers in Lian Thai are not dismissed after applying to be union members. Corporate codes of conduct must be assessed within the context of the commodification of life, increasing income inequality, exorbitant salaries and benefits for senior management, and declining real wages. When asked what recommendations they had for improving labor conditions, workers report that most of all they would like to be treated asif they are human beings."
Press here for the Full report.
March 16, 2001 - This is from the Thai
Labour list. Workers from Nike supplier Thai Iryo
lost their jobs last year when the owner closed their factory
and moved the production to non-unionized facilities. They were
amongst the workers who protested to Tiger Woods in Bangkok last year.
Update on Thai Iryo Garment Union March 16th,
2001
The sale of the companies’ assets is under way
and is expected to be completed in the next month. Ironically, union
members have been put in charge of the sale as the company has
completely abandoned the factory. The union does not expect to get
their full severance, as the profits from the company's assets will
first go to pay off bank loans.
Twenty-five members of Thai Iryo Garment Union
have decided to form their own sewing cooperative. The women
have rented a building in Rangsit and have purchased sewing
machines. Some of them have been able to purchase machines while
others have had to go into debt in order to make the purchase.
The hope is that these women will eventually be able to receive direct
orders from companies and be able to retain 100% of profits.
Unfortunately they currently are relying on
subcontracting orders as they do not yet have enough equipment to
complete the entire production process. At the same time, these
women are proving that twenty-five workers can live and work together
productively and cooperatively without foremen, managers or factory
owners. Since they have started working, their spirits have
risen immensely.
On Wednesday the 14th of March, the workers held
a traditional merit making ceremony at the cooperative. Monks
from a local temple came to make merit and offer blessings. The
workers treated family, supporters and friends with food and drink to
mark the occasion. This ceremony marks the end of a long process
of struggle for the twenty-five women involved in the
cooperative. Since September they have protested in front of the
factory, at the Ministry of Labor, been to court hearings, dealt with
the sales of the company assets, supervised the renovation of the
building they are renting, purchased machinery, set up shop, and
searched for orders. This also marks the beginning of their
enterprise which we hope will be a model of women working in dignity,
earning a living wage and playing an active role in the broader labor
movement. We will keep you posted on the progress of the Thai
Iryo workers Union and Cooperative.
The crowd then marched to Government House, chanting:
What is the difference between Minimum Wage, Sweatshop Wage, Living Wage, and Tiger Woods Wage?
Sweatshop Wage - Now, in sweatshop making export clothes, Lek (Junya Yimprasert) found out that the [Thai] workers can earn as little as only 46 baht [1 US$] a day. As she puts it, "The workers whom I found out that earning only US$ 1 a day was subcontracting to produce Nike, Adidas, Puma, Tommy, and any brand names that they have ordered. So it is not that Reebok and Nike are paying difference or higher than other [firms]. The only difference is that the workers in the main factory at least enjoy minimum wage, but that is going to change also due to the movement that many company apply this target rate system or piece rate system." (August 1, 2001). Note: there is an on going problem of Nike subcontract factories outsourcing part of the production to the informal sweatshop sector of the economy (to smaller factories and home production).
Minimum Wage in Thai - Thai minimum wage is now from US$ 3 - 4.50 a day, but subcontractors to the main factory can earn as little as $1 a day.
Living Wage - This is the wage payment that meets the cost of food, basic shelter, and subsistence. The anti-sweatshop movement is working to raise the minimum wage to a living wage. There is fear that any wage increase would encourage foreign (transnational) corporations to shift their production bases elsewhere, leading to higher unemployment in Thai.
Tiger Woods Wage - Tiger Woods signed a sponsorship agreement in September, 2000 with Nike for 5 years worth $100 million. With all winnings and endorsement earning this year, Tiger Woods will get $55,000 a day. A Thai worker in a Nike factory would have to work for 14,000 days or 38 years to receive the same amount.
(On July 30th, representatives from 47 private and public sector labor unions and people's organizations marched from the Democracy Monument to rally in front of Government house, calling for a 180 baht minimum wage for the whole country, as well as increased social security. Over 1 thousand workers were joined by students, and representatives of the urban poor in their push.)
ADIDAS -Thailand
CHAIYAPONG VECHAMAMONTIEN PH:662-541-9309 FX:662-541-9308 chaipong@loxinfo.co.th
NC APPAREL CO., LTD. PRASOP JIRAWATWONG PH:662-589-0123 FX:662-589-7032
NICE APPAREL CO PRASOP JIRAWATWONG PH:662-589-0123 FX:662-589-7032
ORIENTAL GARMENTS CHAVALIT NIMLA-OR PH:662-379-3072 FX:662-379-3963
SIAM KNITWEAR DOMINIC CHI KWONG NG PH:662-379-4485 FX:662-379-3232
TRAX INTERTRADE CO LTD CHAIYAPONG VECHAMAMONTIEN PH:662-541-9309 FX:662-541-9308 chaipong@loxinfo.co.th
THAI SILP YAWALAK UNOPAS PH:3268350-61 FX:3268348-9 SEE FULL LIST -- See ADIDAS List |
In April 2000 a Belgian TV crew made a reportage on labour conditions in the sportswear industry in Thailand to looking into the compliance at the factory level with the Code of Conduct of Nike and Adidas ... Adidas refused entry to their suppliers. ... Adidas stopped sourcing its footwear from Thailand all together and turned even more to countries like China and Vietnam, countries where reports show labour rights are much violated and trade unions are state controlled (CCC).
| SHOE FACTORIES - REEBOK -
THAILAND
Thailand Wongpaitoonpiya Footwear Public Co. Ltd. |
| APPAREL FACTORIES - REEBOK
Thailand |
NEXT - PART II - On Carnival, Spectacle and Festival in Thailand