Nike and LEDC's
By Lucinda Eaton, Imogen Marshall and Megan Conran
What will we discuss?
What conditions are employees working in? How do employees’ wages support them and their families? What choice do they have?What is the alternative? How have the countries producing Nike products changed? Where are Nike products being manufactured? Why do Nike change where their products are manufactured An example of these conditions: VIETNAM Why can’t Nike provide their workers with more money?
What conditions are employees working in?
The basic wage that workers receive in LEDC's is not much above the minimum wage The workers have to work 60 hours a week, but are forced and threatened to work overtime (sometimes as much as 100 hours/month) Worker’s are under harsh threats to work for a petty wage
How do employees wages support them and their families?
The legal minimum wage is much below what is needed to meet the basic needs of a small family, but still Nike only pay their workers this minimum amount Workers living in distant villages see their children 3-4 times a year, whereas those living nearer may see them once/month
What choice do they have? What is the alternative?
Alternatives (on the streets going hungry) are even worse A minimum wage and long hours is better than nothing Some don’t care how hard they have to work to be able to support their family
How have the countries producing Nike products changed?
70,000 60,000 50,000 40,000 30,000 China 20,000 Vietnam 10,000 0
90 19 92 19 94 19
South Korea Thailand Indonesia
The graph shows that as a country’s minimum wage increases, Nike moves their factories to a cheaper country where they can get more work for less money
Where are Nike products being manufactured?
Nike products are made in mainly LEDC's where the wages are the lowest and the worker’s human rights are extremely repressed Such countries are South Korea, Indonesia, China, Vietnam and Thailand
Why do Nike change where their products are manufactured?
As a countries minimum wage increases, Nike moves production to another LEDC with a lower minimum wage They have no consideration for what effects this has on workers (unemployment and starvation)
An example of these conditions: VIETNAM
Nike workers in Vietnam earn 20 cents an hour. This buys them very little as the cost for 3 meals a day for 1 person is $2 Some women are sexually harassed by their foreign supervisors claiming that their country’s customs demand this greeting and others are threatened Some work 26-27 days/month and STILL have 40-65 hours of overtime (this can be as great as 100 hours)
The conditions of work in Vietnam are inhumane Workers are not allowed to go to the bathroom more than once in 8 hour shifts and they can not drink more than twice per shift Workers often faint during shifts There is only 1 doctor that works only 2 hours a day when the factory is working 20 hours a day and night shift employees have no medical services available
Why can’t Nike provide their workers with more money?
We are unsure of why Nike are unable to increase wages Nike produces many products such as trainers, sports clothes and equipment On average, the price of a pair of trainers is £65-120 Nike workers’ wages are only 4% of the price you pay for trainers and as little as 0.5% for clothes Surely Nike could afford to increase the amount that their workers receive