Nike Wants Factory Workers to Earn a Decent Living. In Indonesia, It’s Moved Into Areas Where Workers Don’t.
If you’re among the more than 1 million people who make Nike’s sneakers and apparel around the world, the company says you should be able to support your family. You should earn enough to pay your living expenses and have some discretionary money left over. If your factory wages don’t cut it, your employer should have a plan to get you there. But Nike’s expansion in Indonesia over the last decade has directly undermined these goals, an analysis by ProPublica and The Oregonian/OregonLive found. Over the last decade, employment at factories supplying the world’s largest athletic apparel brand expanded dramatically in regions of Indonesia where, according to one leading estimate, the minimum wage is less than the amount workers need to live on. Meanwhile, Nike’s supply chain shrank overall in places that pay this estimated living wage, our analysis found. The trend shows how the movement of multinational corporations to countries with ever-lower labor costs is being replaced, in some c...