Report on Nine Nike Contract Factories in Indonesia
Groundbreaking Study by Global Alliance Reveals Advances, Challenges Continue in Global Manufacturing The full report
can be found at: http://www.theglobalalliance.org/content/indonesia.cfm
Thousands of Workers in Indonesia Respond to Survey with Concerns, Hopes for the Future
BALTIMORE, February 22, 2001 -- An alliance of public, private and not-for-profit organizations designed to improve
opportunities for factory workers has released the findings of a comprehensive and insightful study of workers' needs
and aspirations in Indonesian factories. The study, entitled "Workers' Voices: An Interim Report on Workers' Needs and
Aspirations in Nine Nike Contract Factories in Indonesia" is the result of an intensive interviewing and focus group
process involving more than 4,450 workers at nine Nike contract factories. Workers were asked - many for the first time
- for their views on a wide range of topics, such as workplace conditions, family life, health concerns, and their
aspirations for the future. The report was released today by the Global Alliance for Workers and Communities, a
partnership of non-profit, public and corporate members - of which Nike is also a member. The mission of the Global
Alliance, an initiative of the Baltimore-based International Youth Foundation, is to maximize workers' potential and to
improve their lives, both at work and in their communities.
"This is a significant first step toward improving the lives and prospects of tens of thousands of workers in
Indonesia," said Rick Little, chairman of the Global Alliance Operating Council. "With this report, we have deepened our
understanding of the everyday lives of these workers, both in terms of their aspirations for the future, and some very
real concerns in the workplace including harassment and health issues. The next step in this process will be to work
with our corporate partners, factory managers, trade unions, local NGOs and workers themselves to design and deliver
programs that are directly responsive to the needs the workers have identified." "Nike and the contract factories
themselves should be commended for their decision to voluntarily open themselves up to this level of public scrutiny,"
Little said. "They provided unprecedented access and transparency so that the Global Alliance could properly conduct
confidential conversations with thousands of their workers." The in-depth assessment process, conducted by the Center
for Societal Development Studies at the Atma Jaya Catholic University in Jakarta, Indonesia, involved one-on-one
interviews, surveys and focus groups with workers. This is the first phase of the Global Alliance's worker assessment
and development initiative in Indonesia. The results of this assessment process are used to design and deliver programs
that address the needs and aspirations identified by the workers themselves, including helping them develop the skills
and resources to achieve their goals and improve their daily experience in the workplace. Each of the nine Nike contract
factories in Indonesia, which in total employ about 54,000 workers, voluntarily agreed to participate in the Global
Alliance program. Some of the key findings about workplace issues and aspirations from the study at nine Nike contract
factories are as follows: Workplace Issues While the majority of workers said they were satisfied with the health
facilities at their factory, more than 45 percent were not satisfied. Workers had a number of serious complaints about
healthcare clinics and the difficulties of obtaining adequate medicines and gaining permission to go to the factory
clinic and to take sick leave. Sixty to 90 percent of focus group respondents in all nine factories reported that the
procedures to obtain permission of sick leave and/or access to medical care are very difficult. In several cases,
workers reported collapsing before their supervisors would grant access to the clinic. A small number of workers (six)
reported two incidents of worker deaths in two separate factories. Those surveyed had heard that the workers involved
had been ill and were denied sick leave and medical attention. Worker focus groups, however, indicated these deaths
occurred outside of the factories and Nike has conducted an investigation of the circumstances that can be obtained from
them directly.
Workers in all nine factories reported experiencing or observing various forms of harassment and abuse. Verbal abuse,
such as swearing or yelling, was the most frequently reported complaint, with 30 percent of respondents reporting
personally experiencing such abuse. Nearly 8 percent of workers reported receiving unwanted sexual comments and nearly
2.5 percent said they have received unwanted sexual touching. Workers' reports of physical abuse from a line supervisor
or manager, such as throwing objects, hitting, pushing, or shoving, ranged from a low of one percent in one factory to
almost 14 percent in another. Workers also reported deeply disturbing incidents of sexual favors for employment
practices at two factories. These reports have not been verified and subsequent focus group discussions also have not
confirmed these reports. Nike has conducted an investigation of the circumstances that can be obtained from them
directly.
Many of the female workers expressed interest in learning more about reproductive health and other womens' health
issues. Several workers reported not fully understanding issues related to pregnancy and prevention. Others said they
hide their pregnancy as long as possible to avoid some of the economic disincentives that come with pregnancy (i.e.
restrictions on overtime hours, being assigned lighter jobs with less opportunities to earn bonuses).
While workers at all nine factories reported that they received salaries that were above the regional minimum wage,
wages remain a top concern of workers. Over half the workers in the focus groups said that basic monthly salaries are
not adequate to meet workers' increasing cost of living. Women reportedly receive slightly lower salaries on average,
often because women do not receive the same "head of household" tax deductions and allowances as men and they hold
different positions within the factory.
When asked about the level of satisfaction workers felt about their work relationships, 93.1 percent said they were
satisfied with work relationships with co-workers, compared with 73.4 percent with direct supervisors, 67.8 percent with
factory management and 77 percent with labor unions. A correlation was found between workers who reported having
experienced harassment and their having lower levels of satisfaction with relationships with direct supervisors and
managers. In focus group discussions, workers reported that harsh words or verbal abuse are considered a normal part of
these relationships. Therefore even workers who report verbal abuse may be satisfied with these relationships.
The study found that 75.4 percent of workers say they are comfortable sharing ideas or suggestions with their line
supervisors, while 43.5 percent said that their supervisors are only sometimes willing to listen to their ideas or
suggestions. Aspirations Over ninety-five percent of workers would like to learn how to plan for their future, manage
personal finances, and learn more about how to be good parents and provide for their children.
The workers have high hopes for their children's educational and career future. Although few of the workers have ever
attended a university themselves, 87 percent would like their children to obtain a university education and hope they
will be able to get better jobs.
Almost half the workers expressed interest in enhancing their general education, as well as improving both their
work-related and non job-related skills. Work-related job skills include learning effective communication, work safety
and new factory technology. When it comes to enhancing non job-related skills, workers expressed the most interest in
skills related to computers, sewing, cooking, handicraft production and small-scale business. About 31 percent of the
workers said they want to start a small business.
Workers also expressed interest in working on projects to improve their communities, from planting trees to supporting
religious activities to assisting their poorest neighbors. "While very troubling workplace issues have been raised, we
have concluded that Nike has acted in good faith throughout the assessment process, and has developed a serious and
reasonable remediation plan to respond to the findings," said Little. "They also have committed to release a public
report on their progress against this plan and a follow-up study will be conducted by the Global Alliance in12 months
with these same Nike contract factories." "We believe this report provides a benchmark from which Nike can measure
progress and ensure accountability. The result will be improved conditions and enhanced learning opportunities for
workers and their families," Little said. This report is the third in a series, following earlier worker needs
assessment reports commissioned by the Global Alliance in Thailand and Vietnam. The earlier reports involved five Nike
contract factories in Thailand and seven contract factories in Vietnam. With this Indonesian report, the Global Alliance
has now assessed the aspirations and needs of workers in 21 of the more than 700 contract factories in Nike's supply
network. These factories involve approximately 20 percent of the workers engaged in making products for Nike worldwide.
The Global Alliance hopes that this report contributes to a greater understanding about workers and the global supply
chain in Indonesia and elsewhere and brings us closer to our goal of improving their workplace experiences and
opportunities. Copies of the full Global Alliance Indonesia report, which includes a statement from the Global Alliance,
the detailed assessment results, and Nike's remediation plan, can be obtained from the Global Alliance for Workers and
Communities by going to the organization's website at www.theglobalalliance.org. A Bhasa Indonesia summary of the report
and this release will be available on Friday, February 23.
The Global Alliance for Workers and Communities was launched in April 1999 to improve the workplace experiences and life
opportunities for workers in developing countries. A public/private partnership of foundations, global companies and
international institutions, the Global Alliance places particular emphasis on reaching young adults workers involved in
global production and service supply chains. Members of the Global Alliance include Nike, Gap, Inc., and the World Bank.
The Alliance also receives support from Penn State and St. John's University, as well as private foundations. The
long-term goal is to develop practical, sustainable multi-sector partnerships to enhance workers' lives.
Website : http://www.theglobalalliance.org/
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