Outsourcing

Outsourcing can save a company a lot of money, but somtimes companies face difficulties. Here is a article from Hr.com that describes some difficulties Nike has had. The article is also pasted below.



http://www.hr.com/SITEFORUM?&t=/Default/gateway&i=1116423256281&application=story&active=no&ParentID=1119278056868&StoryID=1119643750109&xref=http%3A//www.google.com/search%3Fq%3Dnike+trouble+outsourcing%26ie%3Dutf-8%26oe%3Dutf-8%26aq%3Dt%26rls%3Dorg.mozilla%3Aen-US%3Aofficial%26client%3Dfirefox-a

On February 22, 2001, the Global Alliance for Workers and Communities released a new study, "Workers´ Voices: An Interim Report on Workers´ Needs and Aspirations in Nine Nike Contract Factories in Indonesia".  Two earlier reports released in September 2000 focussed on practices in Thailand and Vietnam and were less controversial; this report on Indonesia uncovered  "very troubling workplace issues."

"No worker should be subject to some of the working conditions reported in this assessment" - Dusty Kidd, Nike Vice President for Corporate Responsibility

The report covers a wide range of topics, but Nike was sufficiently alarmed by some of the most "disturbing issues" that it has already issued a remediation plan of action. These disturbing issues included:

* Health and safety: Â 60 to 90% of focus group respondents reported that procedures to obtain permission for sick leave or access to medical care are very difficult. Two worker deaths were alleged to be related to denial of sick leave and access to medical attention. A follow-up investigation determined no fault by the company, but reporting procedures have now been changed. Â Upgrading of sanitation and food service standards will be also be implemented.
* Harassment and abuse: Â 30% of respondents had personally experienced verbal abuse; nearly 8% of total workers reported unwanted sexual comments. Â At two factories, there were reports of "deeply disturbing" incidents of sexual favors demanded in return for employment. Nike will implement harassment training for managers and workers using local resource people, and initiate a grievance system for workers to bring forth issues without fear of retribution.
* Wages were the top concern for workers: Â Over half the focus group members reported that their basic monthly salaries are not adequate to meet their cost of living. Â There were also complaints concerning unpaid wages and disputed overtime payments. Â Further independent audits have been commissioned to ensure that all factories are paying the new minimum wage and that workers understand the wage and overtime calculations.

Nike´s "Transparency 101" initiative

After years of scrutiny and criticism of its labor practices, Nike has become very skilled at presenting its own side of the question. Â At the www.nikebiz.com website, a section called "Transparency 101" publishes the full details of its remediation plan, as well as a link to the full report at the Global Alliance site. The report itself was carefully done, conducted by the Center for Societal Development Studies at the Atma Jaya Catholic University in Jakarta, on behalf of the Global Alliance. Â Researchers conducted one-on-one interviews, surveys and focus groups that involved more than 4,450 workers in nine factories. Â

Nike has pledged to conduct an independent verification of the compliance with the remediation plan, with quarterly progress reports to Global Alliance, and a follow-up assessment of the impact of the remedial steps in twelve months. Â The Global Alliance is a consortium of public groups and companies, and includes among its members Nike, The Gap, and The World Bank. Â

For another side to the Indonesian story, go to the website of the Union of Needletrades, Industrial and Textile Employees (UNITE). Â They published a report of their own investigation of Asian working conditions, "Sweatshops behind the Swoosh" on April 25, 2000.