Nike Fair Labor

In 1999 Nike began the Fair Labor Association, which is a non-profit group “that combines companies, and human rights and labor representatives to establish independent monitoring and a code of conduct, including a minimum age and a 60-hour work week, and pushes other brands to join” (citation 11). Since its formation, the FLA has done work in many third world countries to eliminate unfair working conditions. In
January 2009, two factories in Honduras that Nike subcontracted with were closed, leaving thousands without jobs or severance packages. “The U.S. sports-apparel giant Nike suddenly closed their doors and did not pay workers the $2 million in severance and other unemployment aid they were due by law. Following proper public-relations

However, in 2010 the company finally made actions to compensate the workers who were left jobless in Honduras.
“The FLA facilitated an agreement between Nike and Central General de Trabajadores de Honduras
(CGT) regarding assistance to workers affected by the closure of Hugger and Vision Tex, the two factories that were shut down. Nike and the
CGT engaged in productive dialogue that resulted in a package of measures that benefit workers, including a relief fund, vocational training programs, hiring priority, and health coverage”
(citation 10). Tim Padgett, of Time Magazine, goes on by saying that “the root of the problem is globalization’s unwritten code: politicians in impoverished countries like Honduras, which has a near 70% poverty rate and whose economy is run by a small clique of wealthy families, get elected by writing strong labor laws, but they’re convinced that they get foreign investment by allowing -11-
MKT 201 Plan Proposal NIKE Crisis Aversion weak enforcement of those laws. Nike has at least made a strong start in correcting that perverse principle” (Padgett, 2010). Although Nike has actively portrayed itself as a caring company that wants improved lives for its