Posts Tagged ‘Jim Keady’

Nike’s unethical; Apple maybe not so much

February 27, 2012

 

Nike shoes are a bargain at $220 a pair. They must be, else why would hundreds of people have showed up Thursday at a Greenwood, Indiana, mall, according to the police report, “panicking to get to the front of the line” for the limited release of the $220 Foamposite Galaxy. The next day in Orlando it took a hundred deputies in riot gear to subdue a crowd waiting for the new Galaxy.

Similar riots attended Nike’s December release of the latest in the Air Jordan line, the $180 Air Jordan XI Concord.

The Air Jordans cost Nike about $16 to produce, giving Nike a gross profit of $164 a pair, or about 90 per cent, before marketing expenses. Shareholders have done well, as the stock price has increased over one hundred times in the last 25 years—in contrast, the Dow Jones average has gone up a factor of seven in that period.

The workers in Indonesia who make Nike shoes haven’t done nearly as well: they earn $4 a day—not enough to provide food, shelter, transportation, and health care. And they can only dream of someday being able to buy a pair of Nikes for themselves.

Nike could easily afford to pay a living wage—labor costs account for only $2.50 a pair. (more…)

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What can a Nike worker in Indonesia do with a daily wage of $4.80? Rent a bare room, eat two meager meals, and ride to work. Jim Keady explains

October 20, 2011

Nike workers in Indonesia earn about 1,285,000 rupiahs a month, or about $4.80 a day. Jim Keady went there to find out what their earnings can buy. Here’s the result.

For comparison, 1000 rupiahs is about a dime. If the worker is single they can earn enough to rent a tiny room, buy two meals a day and a couple of small bananas, and have enough left over to pay their bus fare to work. If they have kids, tough luck.

Jim has been at this for fourteen years now. He’s begun to gain some traction with Nike. They used to say it wasn’t any of their business: Founding CEO Phil Knight famously defended Nike’s practice by disclaiming, “We don’t make shoes.”

Now Nike slowly follows Jim’s lead, gradually accepting some responsibility for some of the abuses Jim exposes.

Here’s an example of a recent kind-of-success: Nike acknowledging that workers were being forced to work unpaid overtime, then being pressured to keep quiet about it.

Hooray for Jim Keady.

Nike takes in billions from official World Cup team jerseys made by $4/day workers

June 28, 2010

I watched the USA soccer team win its group in the World Cup, then lose to Ghana in the knockout round. Then I turned to my second favorite team, Brazil. I’m part of a World Cup television audience of more than a billion fans, and like most of them I lusted after the official team jerseys—a white USA shirt, perhaps, with number 10, Donovan, on the back, or a brilliant yellow and green Brazil shirt, also with number 10, Kaká. No, I think I like best the red and green number seven jersey of the world’s best player, Portugal’s Christiano Ronaldo. Seventy dollars for the home jersey, sixty for the more colorful away version. But I won’t be buying any.

All these official jerseys are made by Nike. Well, actually, Nike doesn’t make any sports gear. The shirts are made by a Nike contractor in Indonesia, whose workers earn $4/day, barely enough to pay rent, transportation, water, and two small bowls a day of rice and vegetables.

Nike long ago took the position that it has no responsibility for the pay or working conditions in the factories that make Nike gear, but over the past ten years it has slowly (more…)

U of Wisconsin rejects Nike business ethics

April 13, 2010

The admirable website, EthicsAlarms.com, praised the U of Wisconsin today for ending its contract with Nike, the result of a 15-year effort by my friend Jim Keady.

Keady’s 15-year effort to get Nike to take some responsibility for the workers who make products with the swoosh has included living for three months in Indonesia on $1.25 a day, the wage in a local factory that makes shoes for Nike. He’s a Jesuit-educated true believer in Catholic ideas (not necessarily practices) of charity.