Nike ends orders with Sialkot-based sporting goods company
21 Nov '06
3 min read
Nike made the decision to end its relationship with Saga following a six- month investigation into conditions and a concerted effort to remediate. Efforts included repeated meetings between Nike and Saga executives, detailed remediation plans and timeframes, and adjustments of Nike orders to provide Saga the opportunity to devote more management time and resources to implement the agreed-upon plans.
Through both company-led and independent investigative efforts, Nike discovered widespread unauthorized outsourcing of its products from Saga facilities, resulting in the production of Nike soccer balls inside homes in the Sialkot area. Nike has a long-standing policy against such practices because of the potential for using under-aged workers and the inability to ensure safe working conditions in home-based settings.
The company also found numerous labor, environmental and health and safety compliance violations within Saga's facilities, including serious allegations by trade union representatives and other Saga employees of worker harassment, wrongful termination and inaccurate payment of wages.
Hannah Jones, Nike's vice president of corporate responsibility, said that in support of workers the company strives to work with its contract factories to remediate compliance violations and create continuous improvement in contract factory conditions. "In this case, remediation didn't work," Jonessaid. "In fact, we saw a further significant deterioration of working conditions due to a lack of commitment by management to address the problems. We also are deeply concerned about the broader conditions and practices we saw in home-based settings."
marketing@alchempro.com
