Nike’s social audit says India units below par

For the first time, Nike Inc has admitted to non-compliance issues and harassment of workers in many of its Asian contract factories, 18 of which are located in India. China has the highest number of Nike contract factories, 124, followed by Thailand, 73, South Korea, 35, and Vietnam, 34.

Of the 18 contract factories in India, 13 are located in south India. In one case, the FLA team found a contract factory operating without a valid licence. Though, according to the company, an application has been submitted, the status right now is “ongoing” as far as safety and health compliance is concerned. Some also employ women for cutting, stitching etc. The FLA monitoring team heard of many cases of sexual harassment as also restricted access to drinking water and toilets.

“Many female workers during interview complained of harassment by the section in-charge of the assembly section and their complaints about him to the supervisor concerned had not resulted in any remedial action. He tends to get spiteful and often would also come and stand/sit next to a female worker and ogle at her to her sheer discomfort and disgust. The problem continues to exist,” the report says.

For long under fire from human rights and labour organisations the world over, the MNC, has for the first time made public the details of its social responsibility report.

The audit acknowledges that there were cases of workers being forced to work overtime. No record was being maintained for payment, minimum wages were not being paid, and semi-skilled workers were being paid wages of the unskilled grade.

As regards health and safety, the audit has noted improper storage of chemicals, like adhesives and thinners. In many cases, these were not labeled. Also, workers had not been given any training for safe handling of chemicals, thereby exposing them to danger.

The report gave out the names and location of about 700 of contract factories making Nike-branded products. “We are disclosing our supply chain in an effort to jump-start disclosure and collaboration throughout the industry,” says Philip H. Knight, Nike founder and chairman, in his opening letter to the report.

For some years now, NGOs and labour activists have been demanding that Nike and other such companies should disclose where their factories are located, so that independent observers could go and assess the labour conditions.