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Indonesia : Nike must take HR responsibility: HASA official
July 21, 2007 |  |
 Despite the fact that shoe giant Nike withdrew orders from two local factories amid quality concerns, a company spokesperson said Nike is committed to raising production base in Indonesia.
Nike had, earlier this month, told PT Hardaya Aneka Shoes Industry (HASI) and PT Nagasakti Parama Shoes Industry (PT NASA) that their orders won’t be renewed as they had failed to take the necessary steps to meet quality standards. Consequently, around 1000 workers employed at the factories would be affected by the decision.
However, an official from PT Hardaya Aneka Shoes Industry (HASI), a Nike contractor in Tangerang, Indonesia, denied that the quality lapses were very serious. Instead, he told Fibre2fashion that compared to global quality standards, the two factories didn't fare that badly.
He added that the factories only provided machinery for production; for other quality-driven exercises, Nike had their officials stationed there. Compared to other Nike factories, their output was far better. The official further said that at most, quality could have been compromised due to the subcontracting factories' inability to meet rising prices head-on.
On Nike's long-term investment goals in Indonesia, the HASI official said talks are still on between Indonesian business enterprises and Nike as to how future plans will be chalked out. But the official said Nike has been asked to take responsibility of the workforce and take the fate of their families into consideration before taking any step in the future. Many affected workers had taken to streets to protest Nike's decision to roll back the orders. | | | | Fibre2fashion News Desk - India |  |
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