Nike expects to place its first order with Silver Star this summer, with production to begin in the fall. Initial and ongoing production with Silver Star will be contingent upon the factory's ability to comply with Nike's product and compliance standards and follow-through on its commitments to support workers' rights.
The decision to work with Silver Star comes about six months after Nike announced in November 2006 that it would cease placing orders with its primary hand-stitched soccer ball contract manufacturer. That decision was due to the factory's inaction on correcting significant labor compliance violations and a fundamental breach of trust with factory management.
Among the violations was widespread, unauthorized outsourcing of Nike production inside homes in the surrounding area. Although home-based production is common in the Sialkot-based soccer ball industry, Nike has a long-standing policy against such practices because of the potential for using under-age workers and the inability to verify safe working conditions in home-based settings.
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