Indonesia is the third biggest producer of Nike goods, after Vietnam and China, with 40 factories employing 171,000 people.
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Does Nike have a factory in Indonesia?
Indonesian Industry Minister Saleh Husin inaugurated the new USD $60 million shoe factory of Changshin Reksa Jaya in Garut (West Java) which will produce Nike branded shoes. The shoe factory has an annual production capacity of 15 million pairs and will provide employment to 5,500 people.
Does Nike still have sweatshops in Indonesia?
Sweatshops are common in developing countries, including in Indonesia, India, Thailand, Bangladesh and Cambodia, where labour laws are rarely enforced. A Nike factory in Thailand. The factories, which are often housed in deteriorating buildings, are cramped with workers and pose fire dangers.
How many factories does Nike have in Indonesia?
40 factories
Indonesia is the world’s third-biggest producer of Nike footwear and apparel, after Vietnam and China, with 40 factories in the country employing 171,000 workers producing Nike goods.
How much do Nike factory workers get paid in Indonesia?
Nike – the shoe company that produces those famous athletic shoes – set up factories in Indonesia because of the low wages there. Today, typical workers can earn the equivalent of around $3.50 per day, which for a six day work-week amounts to $21. This is equivalent to P861 per week (at P41 – $1), P3,444 per month.
Did Nike shut down factories?
Nearly 80% of Nike’s footwear makers and half of its apparel providers in Vietnam were forced to halt production in mid-July, which cam after authorities had imposed restrictions on movement to stop a major outbreak from spreading. Almost half of the American sports giant’s footwear is made in Vietnam.
Does Nike still use child labor?
Nike admits it cannot ensure that none of its contractors will use child labour, and says the issue is the “most vexing” problem it faces. “Our goal… is to continue to do everything we can to eradicate child labour in our contract factories, but we can be certain that cases will occur,” the report states.
When did Nike stop using sweatshops?
Nike sweatshops
Nike had been accused of using sweatshops to produce its sneakers and activewear since the 1970s, but it was only in 1991 when activist Jeff Ballinger published a report detailing the low wages and poor working conditions in Nike’s Indonesian factories that the sportswear brand came under fire.
Are Nike shoes made by slaves?
Nike is one of the largest companies that use sweatshops and child slave labor. Nike has sweatshops all over the world. In the 1970s, Nike’s shoes were mostly made in South Korea and Taiwan, with some factories still in the United States.
Where are Nike factories located?
Most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.
How much do Nike factory workers get paid in China?
A typical worker the plant might earn around $400 a month depending on position and overtime, according to China Labor Watch, which published a report on the facility in 2010.
How much do Indonesian sweatshop workers get paid?
The young women at the Serang plant, called the Nikomas Gemilang factory and owned by the Taiwanese firm Pou Chen, earn a base pay of 5,200 Indonesian rupiahs each day, which is the legal minimum wage. That comes to about $2.28 a day.
What is the minimum wage in Indonesia?
The minimum wages have been revised in Indonesia, with effect from 01 January 2022. The monthly minimum wage in Jakarta has increased from IDR4,416,186.00 to IDR4,641,854. Note: This minimum wage increase might not reflect the inflationary trends.
How much do Nike pay per hour?
Starting wages for North American hourly employees in our stores (including US, Puerto Rico and Canada) begins at $15 USD/CAD.
Where are original Nikes made?
Almost all Nike shoes are manufactured outside of the United States. The leading manufacturer of Nike shoes is China and Vietnam each accounting for 36% of the total manufactured world wide. Indonesia accounts for 22% and Thailand for 6% of the Nike shoes that are being produced world wide.
How many factories do Nike have?
Its manufacturing network consists of over 700 factories in 42 countries. Each product moves from 57 distribution centers across a network of 18,500 accounts and 140,000 retail doors.
Is Nike cheaper in Vietnam?
Shoe Shopping in Ho Chi Minh City Malls
Don’t expect to grab a pair of Nike at a cheaper price than the price offered back in your hometown. Brand name shoes in Vietnam are quite expensive if you want the real deal.
What’s wrong with Nike?
Our research highlights allegations of forced labour in the Nike supply chain, gender discrimination towards female athletes and parents, and failure to ensure all employees receive a living wage.
Who is Nike owned by?
4 The co-founder of Nike, Phil Knight, and his son Travis Knight, along with the holding companies and trusts they control, own more than 97% of outstanding Class A shares. 5 This allows the Knight family to exercise effective control of Nike even though it is a publicly traded business.
What are Nike’s weaknesses?
Nike’s Weaknesses – Internal Strategic Factors
- Poor Labor Conditions in Foreign Countries – In the last 20 years, Nike has been consistently targeted regarding their poor labor conditions.
- Retailers Have a Stronger Hold – Nike’s retail sector makes Nike weak due to its sensitivity against pricing.
How did Nike recover from sweatshops?
Nike also raised the minimum wage it paid workers, improved oversight of labor practices, and made sure factories had clean air. These admissions and changes helped public sentiment toward Nike turn more positive, Sehdev said.