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Showing posts with label Indonesia. Show all posts
Showing posts with label Indonesia. Show all posts

Friday, 7 September 2018

Nike and its Sweatshop Problem





Link https://youtu.be/exD6tc-wI0o

Recently trainers giant Nike hired Colin Kaepernick to be its new celebrity sponsor. Kaepernick is a professional American style Football player but his fame is largely boosted by his public protesting against police killings of African Americans.


As a result this has made him a target of right wing American vitriol. As a result they greeted his lucrative and high profile new gig with alarm and outrage. Currently #Nikeboycott is trending on social media platforms, as are pictures of very strange and impotent protests of consumers destroying the Nike products that they have already bought.


So yeah that's probably not going to hurt Nike's profit margins much at all unless they get their act together.

However Nike is a pretty awful company, most well all capitalist business are, its rooted in their structure and motives for existence. Nike is infamous for its use of sweatshops and what became known in the 1990s as Corporate slave labour. Simply typing the words Nike Sweatshops into a search engine brings up hundreds of photographs, banners and placards against the companies practices. The above video is about the global consumer protests and a strike by Indonesian Garment workers. The first interview is with former factory employee Cicih Sukaesih whom famously was invited to the USA to confront Nike's top executives, they declined to meet with her, so instead she toured the country speaking to the American public instead.

The interview with Cicih Sukaesih also goes into detail about the issues with consumer boycotts as a tool of social change.


Transcript

Program Announcer Max Pierson:

But we begin by looking at the harsh realities of global commerce. Going back over thousands of years each leap forward in transport be it sail ships, ancient roads, steam or jet engines has led to a consequent expansion of trade. But over the last century that process has accelerated towards what we now think of as the globalised economy.

Some argue that increased trade increases the world’s prosperity, but while their maybe winners there are also losers. In the early 1990s one of the world’s best-known brands Nike began to attract bad publicity over the working conditions in some of its factories. Fans of the sports retailer started to boycott the company when they found out about the sweatshop conditions in which some trainers were made.

Claire Bose has been speaking to an Indonesian Nike worker who was fired for protesting against poor wages and conditions.

Cicih Sukaesih:

It was very tiring, it was very boring. My job was to glue the sole of the shoe on the trainer, the bosses forced us to do overtime. We were constantly pushed to meet targets.

Claire Bose:

In 1992 Cicih Sukaesih made Nike trainers in Indonesia. She earned less than the minimum wage, less than a dollar a day. Cicih would be at the factory from 7:00am to 9:00pm six days a week, she was only allowed to leave the conveyor belt for lunch.

Cicih Sukaesih:

We didn’t have time to have a break even if we wanted to take a pee it wasn’t allowed. Some of us would pee under the machine.

Claire Bose:

She says that the bosses at the Korean owned subcontractor where she worked were abusive to.

Cicih Sukaesih:

Our supervisor would say “Hi monkey” and use that insulting language. Some women were also sexually abused, the bosses would touch and grab them inappropriately. It was very upsetting and disturbing to see.

Claire Bose:

At the time Nike made some of the worlds most popular shoes, with sales worth nine billion dollars a year. Its logo commanded people to “Just do it”. Cicih had no idea that the shoes she made could be sell for more than a hundred dollars a pair. When she found out she was horrified.

Cicih Sukaesih:

I had enough, I was annoyed, I decided to see if any of my friends had the same idea. We agreed to organise a strike.

Claire Bose:

But organising thousands of workers wasn’t easy.

Cicih Sukaesih:

We had to plan in secret, we first spoke about it during a work outing. It was for a religious festival so it gave us an excuse to talk to each other freely. Back in 1992 there was no other way to communicate secretly. We had no mobile phones, so I am very proud that we managed to convince all 6,500 workers to strike, 90% of these were women. We all agreed to go on strike.

Claire Bose:

And in September 1992, the workers went on strike for three days, incredibly the factory owners agreed to the demand for a rise in salary. But it was small, only new workers were granted the minimum wage the equivalent of a dollar and twenty-five cents a day. Everything went back to normal but then one month after the strike Cicih was arrested.

Cicih Sukaesih:

I was interrogated and accused of involvement in an illegal organisation. On the second day I was afraid of being tortured, I was made to sit in a chair covered in blood and forced to admit to being the mastermind of the strike action. I was terrified.

Claire Bose:

She was released, but two months after this interrogation Cicih was fired. She was black listed by her employment agency, and hasn’t worked since.

But protests like hers were beginning to attract the attention of charities such as Christian Aid.

Christian Aid Spokesperson:

One of the things which Christian Aid is highlighting is the double standards that go on in the shoe trainer industry.

Claire Bose:

They pointed to the millions of dollars paid by companies like Nike to sports stars such as Basketballs Michael Jordan for promoting their products.

Christian Aid Spokesperson:

Particularly when you’ve got mega celebrities in the sports industries being paid as much as 70 million pounds to endorse some of these shoes for which say a woman working in a factory in China would probably be paid only be paid around twenty-five pence an hour.

Claire Bose:

Nike rebuffed the claims made by Christian Aid and others, saying they were fair to their overseas employees.

Nike Spokesperson:

Our code of conduct says first of all that every factory worker has to earn at least the minimum wage, at least. Second all factory workers have free housing, they have free transportation and they work in well-conditioned, well ventilated working areas, so we don’t have anything to do with the things mentioned in the Christian Aid report.

Claire Bose:

Both workers and manufacturers were just starting to grapple with the impact of globalisation and of relative pay scales. Later the founder of Nike Phil Knight spoke to the BBC about it.

Phil Knight:

Essentially there are markets and all these things that really kind of dictate what gets paid and what doesn’t get paid. [muttering] If I’d like to average say Michael Jordan’s salary with a shoemaker in Indonesia this is Michael Jordan wouldn’t like that to good, and we wouldn’t have Michael Jordan as an endorsement. And the same take on a shoemaker in Indonesia is paid 50% more at entry level than what he gets at minimum wage you know in other industries in Indonesia. So, what we try to be is good citizens within the country that we’re working in.

 Claire Bose:

But Cicih Sukaesih didn’t recognise that image of Nike as the good citizen. So, when in 1996 an American NGO Press for Change invited her to visit America and tell Phil Knight in person, she agreed immediately.

Cicih Sukaesih:

I was very proud to be able to go to America, I wanted to speak to the owner of Nike, Phil Knight to tell him about the low wages for Nike workers in Indonesia. Maybe he didn’t know the condition of his workers in Indonesia.

Claire Bose:

Despite traveling to Nikes headquarters in Oregon, she didn’t get her audience with Phil Knight. But during her stay in America Cicih managed to tell her story to thousands of teenagers and students, many of whom then vowed to boycott the company. But that was something she herself struggled with.

Cicih Sukaesih:

In fact it was confusing, I didn’t want to promote a boycott because that would mean people would stop buying the shoes and the company would close in Indonesia. I worried that it would lead to many unemployed workers in Indonesia, I thought the important thing was to keep the company, but make sure that they applied the code of conduct which meant paying a decent wage.

Claire Bose:

Two years later in 1998 Nike’s CEO Phil Knight admitted that his company had become synonymous with slave wages and forced overtime. He announced a program to address the complaints made against them by allowing monitoring of their factories by NGO’s. Millions of Nike trainers are still made in Indonesia, Cicih has never had a job since working for Nike, she lives with her sisters family. She remembers fondly her trip to America, and in particular the first time she tried on a pair of Nike trainers.

Cicih Sukaesih:

I felt proud indeed, because after so many years making shoes finally I could try them on. Proud at the time and sad too, sadly I made the shoes for four years and never tried it. I could not afford to buy it, proud and sad.

Max Pierson:

Cicih Sukaesih was speaking to Claire Bose, and you can see Cicih campaigning in America in 1996 on our website, just search for BBC Witness. It remains a fact that a very high percentage of the shoes and clothes sold in the glitzy high street shops of the richest countries in the world have been stitched together in the factories of some of the poorest.

I’m joined now by Lucy Siegle a journalist and author of To Die for an investigation of the fashion industry. Lucy has anything really changed from those days in the 1990s when there seemed to be a growing awareness of the sweatshop question?

Lucy Siegle:

I think a lot has changed superficially, I am not convinced that there has been substantive changes in the supply chain that rule out the abuses that we heard about then and we hear about still. And in many ways I think the problems in the supply chain have spread throughout different producer countries, what we might call fashion hotspots, garment hot spots. When Cicih was leading that campaign, we had a slightly different looking fashion industry.

That has transformed and is even faster, even cheaper and even greedier for market share than it was back in the 90s if you believe that.

Max Pierson:

But did campaigns like that and the threat of a boycott, no matter how effective it was, did the threat of a boycott have any impact on the big brands?

Lucy Siegle:

I think it obviously caused Nike to change direction. So, what we saw was kind of out right denial, hostility and shutting down of campaigners and trying to seize control of the narrative. And as that report makes clear, after a couple of years of that Phil Knight who was CEO at the time came out and said “we do have a charge to answer here, and this how we’re fundamentally changing”. Now that was a massive shift and gave a lot of hope to campaigners and concerned citizens.

Because you know the issue is that things are very, very complex. The, the move to substantive change has not really happened, the business model has actually grown more fierce and more competitive and I think we still have a huge amount of problems in the fashion supply chain. I actually wrote in my book-my book came out two years before the Rana Plaza catastrophe in Bangladesh. That was in 20th April 2013 when 1133 people were killed in a single incident making garments for different brands, for the Western high street stores they’re the brands that we all know very, very well.

And that you would think would mark a seismic shift, it hasn’t actually. And that really is evidence that it’s the business model that is really at fault here.

Max Pierson:

But isn’t there at least more transparency? It’s not as if the world does not know about the potential for sweatshop conditions in some of the developing world. And the responsibility has to some extent be on both the consumers and the big brands to be clear what they’re buying and where that stuff is being made.

Lucy Siegle:
It is not possible for them to be 100% clear and accurate about where stuff is being made when the supply chain is incredibly chaotic. Also, I think Nike was actually one of the first brands to publish their list of supplier factories and you see a lot of brands doing that now. But actually, what tends to happen is that they published a list of first tier factories that they know about where their first order was placed and what we’re still not taking account of are their two, three and four tier factories into which orders are subcontracted.

Where there isn’t really anybody watching what’s going on and this is where a lot of these abuses, which ranges as your report made clear from sexual abuse of women, intimidation, right through physical abuse and then right through to terrible disasters as we saw at Rana Plaza. So, transparency of first tier factories tells us something, but it doesn’t tell us enough. And it isn’t fair to expect the consumer to try and unravel all of this before they buy an item of clothing.

We know that boycotts damaged the people that they’re set out to help, we don’t want them to boycott, but what else do we want them to do? It’s a really really sticky question.

Max Pierson:

And what about what we might call the Nike argument in the 1990s, that umm they were paying more than the legal minimum wage in Indonesia at the time, even though that wage might be pitiful by the standards of those who were buying the products?

Lucy Siegle:

Yes, it’s still an argument that’s being used today by hundreds of other brands all over the world so that’s one, that’s one aspect that has travelled all through the decades. The living wage debate over fashion has really been disgracefully slow. What we can say is that the fashion industry is not paying people a living wage and is not providing decent livelihoods within its supply chain after all of these years.

Friday, 19 August 2016

The Olympic games show the fraudulent liberty of right wing Libertarianism





The Olympics are on again, and while the physical achievements of the athletes are quite impressive I’m not really that fussed about who wins medals and who got disqualified for nudging a bar. Even if I was the corruption, security crackdowns and forced relocations of thousands of locals that always seem to accompany these global events would sour me on the topic. It does provide some interesting lessons about government priorities, corporate ethics and culture clash. And very occasionally there will be a very important symbol of protest.

A bit of trivia that I learned about the 2012 Olympics provides an example of why right Libertarian types (Anarch Capitalists, the Watchmen state types, and the Ron Paul style Libertarians of the USA etc.) vision of a perfect society is basically a fraud. The main fixture of the Olympics is of course the medals, and how many medals one nation can accrue. For the 2012 games the precious metals supplied for the shiny medals was supplied by a global mining giant called Rio Tinto. Rio Tinto has stretched across the globe in the US, Canada, Australia, Madagascar and Indonesia. They have a very murky record in practically every operation they run. One part of Indonesia that is of particular interest to Rio Tinto and other mining conglomerates is West Papua, an area that has suffered over fifty years of martial law and is under the direct control of the Indonesian military. If you wish to visit West Papua legally, you require a permit with the signatures of 18 heads of different ministries, and the conflict is estimated to have killed between 100-500,000 people[1].



Indonesian military "pacify" a village



The resource extraction companies like Rio Tinto that operate in West Papua are not independent of the security apparatus, there labour practices and environmental destruction including dumping toxic chemicals into the river system

“ The mine reportedly has caused “massive environmental destruction” in West Papua due to the dumping of waste, including toxic metals, into Indonesia’s river system.(16)   According to WALHI, a leading Indonesian environmental group, the mine has already disposed of one billion tons of tailings into the local river system, resulting in copper concentrations in local rivers that are double the Indonesian legal fresh water limit. Over the life of the project, the mine reportedly will dump up to 3.5 billion metric tons of waste, despite the fact that riverine disposal is expressly prohibited under Indonesia’s water quality control regulation.(17)”[2]

Because of human and labour abuses at mining sites company infrastructure has been targeted, a riot in 1996 shut down the Grasberg mine (one of the largest open pit mines in the world) for several days and cost the company several million. In response the mining companies stepped their support for the Indonesian military.

“  In 1996, local people rioted, destroying $3 million in equipment and shutting the facility down for three days.  Shortly thereafter, Freeport-McMoRan, Rio Tinto’s partner, reportedly started providing significant support to the Indonesian government and military to ensure the protection of the mine.(18)   The company reportedly made an initial investment of $35 million in military infrastructure and vehicles and paid at least $20 million to military and police in Papua between 1998 and 2004.(19)

§    Serious human rights violations have reportedly occurred near the Grasberg Mine and Rio Tinto and Freeport-McMoRan have been accused of complicity due to their reliance on the military and police for security at the mine.  According to Indonesia’s National Commission on Human Rights, “in the mid-1990s the Indonesian security forces indulged in indiscriminate killings, torture and disappearances of local people in their safeguarding of the mine operations and their campaigns against West Papuan secessionists.” (20)”[3]



The support that Freeport (the operations company that Rio Tinto owns 40% of) has given to the Indonesian military and police in West Papua is more than the millions of dollars given to the Police and Military. Company support for this armed protection has become so extensive that Indonesian troops and police are barracked on company property, drive company vehicles, and sport company uniforms[4] and receive direct bonuses and are even fed by the company.



“During a recent interview in Jakarta, the respected Amungme traditional leader ('Mama') Yosepha Alomang demonstrated that she did not need to read the New York Times to know that although the government security forces [including police and military] receive three free meals a day from Freeport, they still receive generous "food allowances" and other payments. The payments were recently revealed to the wider world in an exposé by Jane Perlez and Raymond Bonner published in the New York Times. [5]



In return for this generosity the army and police (The distinction seems pretty arbitrary to me) maintain discipline on company sites, keep the area clear of terrorists and on occasion spy on troublesome civil society groups for the company. Indeed when this cosy relationship was exposed in 2005 by the New York Times the Indonesian military fully admitted to the relationship,


“A military spokesman, Major General Kohirin Suganda, said yesterday the military "as an institution" had never benefited from the Freeport payments. He also claimed that individuals did not enrich themselves, rather that the money was spent on the forces in the field. "We have heard that Freeport provides support such as vehicles, fuel and meals directly to the units in the field," Gen Suganda told the Associated Press. "That's the company's policy. It was not done because we requested it."”[6]

This is deplorable but you might be wondering what the point of this is. The abuses and murders being carried out in West Papua are by state institutions; the police and the army. Well for the sake of argument let’s assume that a world revolution took place, inspired by the ideas of right libertarianism, and the state everywhere was overthrown or dissolved, or whatever. Would anything change for the people of West Papua? I realise this is a hypothetical but I don’t believe it would. Rio Tinto, Free Port and the other resource and mining companies would still be there. The metals in the ground would still be there, the market and the capitalist system would still be functioning. So not much has changed, the people of West Papua are being oppressed and a key component of that oppression isn’t even scratched.



Rio Tinto et al aren’t using Indonesian soldiers because they personally oppose the regions secessionism and believe in an Indonesia one and indivisible. They are doing it because they want to keep profits up and costs down.

Since they’ve already shown for decades that they’re prepared to ignore the local population’s needs with their business practices and that they are willing to enforce this  corporate policy through armed force. What’s to stop them from continuing to do so? There using the state army and police, because they were already there. If the army and police go away along with the rest of the state then what’s stopping the companies from building their own security forces? They already employ by proxy Indonesian soldiers so it wouldn’t even be a radical break.

If you’re being menaced by an armed force does it really change anything from your point of view if that force is motivated by a desire to maintain national unity or to get a bonus? If the people are not much happy being beaten by the “people’s stick” would they be much happier being beaten by the “Individuals privately owned stick”?

The simple reality is that both state and capital are oppressive and exploitative institutions so getting rid of one and ignoring the other, leaving aside the question of whether it’s possible won’t stop exploitation or oppression, it simply changes the jargon and uniform logo’s.




[1] http://thediplomat.com/2013/11/asias-palestine-west-papuas-independence-struggle/
[2] http://londonminingnetwork.org/2010/04/rio-tinto-a-shameful-history-of-human-and-labour-rights-abuses-and-environmental-degradation-around-the-globe/
[3] Idib
[4] Leith, Denise. The Politics of Power; Freeport in Suharto's Indonesia. University of Hawai'i Press, 2003.
[5] http://www.downtoearth-indonesia.org/story/illegal-military-payments-freeportrio-tinto
[6] https://www.theguardian.com/world/2005/dec/30/indonesia.johnaglionby

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