Inside Nike
Unit 8 reporter Leslie Knopp spent a month in Indonesia, where Nike makes one-third its shoes.
Critics have long claimed workers have suffered verbal and physical abuse. And that they were paid low wages and forced to work overtime.
Now we’ll take you inside a Nike factory so you can judge conditions for yourself. If Portland is Nike's heart, workers in Indonesia and elsewhere are Nike’s hands, the hands that make your shoes.
Company officials and activists disagree about the conditions they work under. Nike’s Tony Nava says: “I think we're way ahead of everybody to tell you the truth. Looking at the industry in general. I think we care a lot about this.
But, activist Jeff Ballinger says: “I have a hard time saying Nike is a leader in this field when I hear the same complaints now, by and large, that I heard ten years ago from these workers.
Nike brought Leslie Knopp to a factory called Pratama, in Jakarta. It’s Korean owned and contracted to make only Nike shoes, 24-thousand pair a day. First, you might be struck by the size. Eight thousand Indonesians work here, side by side, doing the same task over and over.
In the sewing room alone, where every swoosh is stitched, there are three thousand workers. From start to finish, 200 people will work on each shoe. It appears clean, but what about labor conditions?
Nike’s Tony Nava: “I've seen tremendous changes in my times overseas, where we've gone from not any involvement, to today's environment where we are totally involved. Nike says it’s made changes at the factory over the last decade.
Although it's always hot and muggy here, the factory has improved ventilation. All but one glue is now water-based. And it's stored in tight containers. UV lights are directed downwards and below eye level.
Noise levels are around 100 decibels, and ear plugs are now required. Workers must now be at least 18 years old, that's older than Indonesian law requires.
But what about what you can't see? What about wages? Indonesia's minimum wage is equal to 38 dollars a month, some of the lowest wages in Asia.
At Pratama, Nike says it pays $40, plus lunch and transportation. But, Indonesian labor activists say this is only half the story. The other half is how far these wages go, and how hard these workers have been hit by the economic crisis.
Indonesia was devastated by the crisis. The currency, the rupiah, dropped dramatically. Inflation jumped 70-percent and millions lost their jobs.
Leslie went to workers homes on her own to find out what they think of the factory jobs. One worker told Leslie: “I like my job”. Another said: “frankly I think my salary is not enough. I'd like a little bit higher than my basic salary.
But how much is fair? Until wages increase significantly, critics say the labor debate will continue, from the factory floor, to the shoes on your feet.