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NIKE & Converse address supply chain issues
16
Jul '11
As an affiliate of NIKE Inc, Converse takes matters of unfair labor practices very seriously and vigorously supports the protection of rights for the worker. Once notified about these issues within factories producing Converse product, immediate action was taken. NIKE, Inc. and Converse remain highly engaged with its factory partners so that the corrective actions are systemic and lasting.

NIKE, Inc. has made significant progress in its Nike brand supply chain and we will continue to accelerate the optimization of our affiliate supply chain. This includes – where possible – integration between factories producing affiliate branded product and those producing Nike-branded product, while aligning factories that exclusively supply affiliate brands to the standards outlined in the NIKE, Inc. Code of Conduct.

Once we were notified of these issues, NIKE, Inc. and Converse took decisive action and immediately began implementing the following changes at PT Amara and Pou Chen:

• Engaged in direct interviews and conversations with workers and created action plans from results.
• Engaged the Fair Labor Association to independently review remediation and transparently report on the results.
• Pou Chen and PT Amara deployed special task teams to start implementing immediate actions at the factories.
• Reviewed and reinforced a confidential grievance process for workers to help with the immediate escalation of issues.
• Human Resource and cross-cultural training for the expatriate supervisors and managers. Bi-weekly training on this began immediately.

NIKE Inc


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