Nike ends orders with Sialkot-based sporting goods company
21 Nov '06
3 min read
NIKE Inc announced that the company is ceasing orders with its hand-stitched soccer ball supplier, Saga Sports, based in Sialkot, Pakistan, due to the contract factory's failure to correct significant labor compliance violations. As a result, Nike is limiting its supply of hand-stitched soccer balls for the foreseeable future. Nike is engaging with a diverse group of governmental, non-governmental and industry stakeholders to secure support for affected workers and jointly explore sustainable, fresh approaches to local manufacturing and social enterprise models in Sialkot.
"This contract factory has persistently broken its commitments and irrevocably breached its trust with us; most importantly, the factory has failed its employees," said Nike CEO and president Mark Parker. "Rather than continue with Saga, we have decided to limit our supply of hand-stitched soccer balls as we are developing new sources with factories committed to upholding our standards and treating workers fairly."
While Nike continues to source apparel in Pakistan, the company currently does not have other soccer ball vendors in Sialkot able to absorb production under conditions acceptable to the company. Soccer teams and leagues sponsored by Nike will not be affected by the decision.
For its retail partners, Nike is working to mitigate any shortfalls between supply and demand. Nike will continue to work with several existing contract factories in China and Thailand to supply premium hand-stitched and machine-stitched soccer balls. Those contract factories already supply a significant portion of Nike's total soccer business.
marketing@alchempro.com
