Just Pay It....

After suddenly laying off over 1,800 workers from two local factories (ie. sweatshops) in Honduras, Nike agreed to create a $1.54 million “workers relief fund” this past week. The money from this fund will be used to provide unemployed workers with vocational training while also guaranteeing these workers priority hiring when the next factory opens. Oh my God- a multinational corporation (MNC) following through on a promise to workers?! Not quite. First, the actual payment should have been over $2 million according to Honduran labor laws and standards. Before we get all sentimental about this supposedly altruistic $1.54 million donation, we also have to realize this amount (although seemingly infinite to a starving college student) is quite literally small change to Nike. Nike reported over $19 billion in revenues just last year. Lastly, an active reader has to question why Nike suddenly closed down the factory in the first place. Chances are, they found another subcontractor that promises cheaper costs through more “efficient” production means. By “efficient” production, they mean paying the workers less money to do the same work. Come on Nike- are we really supposed to be impressed with this?

Having said that, Nike’s actions brings hope to several workers rights activists. Scott Nova, director of the Workers Rights Consortium, argues that Nike’s actions “will give labor advocates a stronger basis in the future. They can point to this precedent now and say that no less a brand than Nike agreed that companies have an obligation to do more than just cajole these factories.” In addition, students in universities rallied to demand fair severance payments from Nike for the Honduran workers. Groups like United Students Against Sweatshops, chanted “Just Pay It” in front of Nike stores all over the country. Although Nike’s actions establish a cautiously hopeful precedent, we cannot become complacent and passive to this phenomenon.

Sweatshops (although MNC's would like them to seem like an inevitable part of globalization) are not just a problem for third world countries. Learn about sweatshops in Los Angeles and what you can do about them.

Hold the Applause

Finally, an anti-sweatshop movement sees results! Yesterday, CommonDreams.org headlined a story on an anti-sweatshop coalition which organized a nationwide campaign against Russell Athletic, a national sportswear company. This happened after Russell Athletic closed a factory in Honduras when its workers unionized. The company’s actions left nearly 1,200 workers unemployed.

The coalition and its web of connected groups and students were able to persuade many college administrations to suspend their licensing agreements with the company, impacting Russell’s overall sales. The impact most likely resulted in Russell altering its previously hostile attitude towards unionizing groups and adopting its current, more accepting one. However, as the article points out this victory was a long time in the making… it took nearly 10 years to get an agreement like this to occur.

In the agreement Russell agreed to rehire the dismissed workers for a new unionized plant and they also agreed to not fight unionization at the seven other factors it has in Honduras.

Campus officials and other businesses have publicly applauded the Russell company for its actions. I agree that such praise could have been deserved but its NOT. Russell Athletics was simply afraid of losing its bottom line. The company only showed concerned for the laid off workers in Honduras once it’s sales were impact. Unfortunately for some big companies their bottom line is worth more than its workers. It was alleged that in 2007 Russell fired 145 workers who supported a union; it is known that in 2009 they shut down an entire factory because it unionized.

Yes this is a huge victory, yes it is an awesome thing. But I do not agree that Russell should be receiving countless praises yet—give their promises some time. Make sure they are actually upheld... can someone say temporary contracts? Yay go anti-sweatshop coalition. Keep on the pressure!


Photo Credit:Scott Beale/Laughing Squid on flickr.com