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Nike



             am and China where the labour is cheaper and labour laws less stringent. (VLF, VN Fact Sheet) Nike does not own any of the factories that produces its products in Asia, and subsequently they do not directly employ the workers or management. They contract out work to factories that make all of the products and run all of the factories. They do, however, have a massive amount of leverage when dealing with these factories because of the huge contracts they supply. To ensure good labour practices, Nike has a Code of Conduct that every contractor must agree to abide by in order to get a contract. The Conduct Code in theory condemns and prohibits child labour, requires that workers be paid fair wage, imposes caps on the days and hours a worker can be forced to work, prohibits mistreatment or discrimination of workers in any form, obligates factories to implement programs that benefit worker's health and safety, and recognizes and respects the workers right to freedom of association.!.
             There are 1000 Nike employees worldwide monitoring operations at the subcontractors and specifically the Code of Conduct adherent. The most consistent criticism of Nike is that the workers in the factories contracted by them are not aware of the Code of Conduct that was agreed upon, and/or it is not enforced (especially the wages and overtime aspects) by the factory officials. Critics contend that the factories pay less than minimum wage at times, force too many overtime hours, and fail to make the workplace as clean and as safe as standards dictate. Many of the factories that are contracted have workers and management from different countries, causing some problems in communication. Some factories in China have Taiwanese Managers while factories in Vietnam have Korean managers. This is one reason offered by Nike in defense of the factories failure to comply with the Code of Conduct. To look into this issue, earlier this year Nike commissioned Andrew Young, a former civil rig!.


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