NIKE Inc announced that the company is resuming Nike brand soccer ball production in Pakistan with a vendor committed to setting new standards for workers' rights in the industry.
Nike's agreement with its new contract factory, Silver Star Group, requires all workers to be registered as full-time employees who are paid hourly wages and are eligible for social benefits.
The agreement prohibits the use of part-time workers paid piece wage rates per ball produced without access to health care and other social benefits, a standard industry practice.
The agreement also requires that workers have full rights to freedom of association and collective bargaining, as mandated by International Labour Organization (ILO) conventions.
The contract factory also must comply with Nike's labor compliance standards and with all requirements of the 1997 Atlanta Agreement and any identified successor agreements that establish labor and compliance standards in Pakistan's soccer ball industry.
“Our decision to resume soccer ball production in Pakistan is the result of extensive work with stakeholders, based on a collective desire to help move the industry in a more competitive direction that strongly supports workers' rights,” said Mark Parker, Nike Inc's President and CEO.
“Silver Star has committed itself to realizing this vision. We hope this is the beginning of broader, positive systemic change for workers, and that the example Silver Starsets will help Pakistan's soccer ball industry create a new model of responsible, globally competitive manufacturing.”