Require suppliers to issue 'Right to Organize' guarantees to workers.
Nike is exploring a longer-term effort to work with suppliers to develop their own codes of conduct. As part of this, Nike would encourage suppliers to outline their commitment to non-interference in workers’ rights to organize and bargain collectively that could be communicated to workers in their own languages.
Proposal A4: Provide an accessible complaints process for workers.
Nike supports the general objective and has supported setting up hotlines for workers to share their grievances in several countries. However Nike is reluctant to set up systems that are dependent upon its company to operate. Nike does not believe it can reach the targets in the proposed timeframes. As a member of the Fair Labor Association (FLA), workers at Nike’s suppliers can file complaints through the third-party complaints system of the FLA.
Proposal A9: Require suppliers to sign union access agreements.
Nike says that it “expects its contract factories to respect a country's legal requirements regarding agreements between factory management and local unions,” but will not require the signing of access agreements.
Nike says it strongly discourages factories from using 3rd-party contractors to hire workers engaged in its core business, but the company will not commit to eliminating the practice, claiming that employment agencies are required in some countries (i.e. small firms in Malaysia).
Nike supports “the overall concept of eliminating inappropriate use of short-term contracts for workers engaged in core business operation,” and expresses a willingness to engage with stakeholders on the use of short-term contracts, but the company does not commit to clearly defining use of short-term contracts, providing same salary and benefits to short term contract workers, or automatic open-ended contracts for workers after 2 fixed term contracts or two years’ employment.
Proposal B6: Establish long-term relationships with factories.
“Nike's focus within apparel and footwear is to move toward fewer stronger, longer-term strategic partnerships with factories.” The company will meet the target if calculated on FOB volume or % of workers.
“Nike does have a formal exit policy, outlined in our CR report,” which is publicly available.
Proposal C3: Report publicly on length of factory relationships.
Nike believes “this would be very challenging” given its data collection methodology. While the company says it “may be able to consider this as part of a broader reporting effort on our focus factories,” it makes no commitment to do so.
Proposal C4: Report publicly on how suppliers are chosen and/or eliminated.
“This is something that Nike currently reports on in our Corporate Responsibility reports.”
Although Nike is studying the impacts of the total compensation package provided to its workers, the company says: ”We are not prepared to incorporate a living wage standard in our Code of Conduct at this time.”
Proposal D3: Ensure prices are sufficient to pay a living wage.
Nike is willing to engage stakeholders “to discuss if there is another way to achieve this objective (e.g. identifying ways to train trade unions on product costing),” however the company believes a third-party review may be unfeasible.
Proposal D6: Take steps to improve workers’ wages.
Nike will be conducting an assessment of overall worker well-being at a specific set of factories that will include wages, but the company will not commit to achieving a living wage.
The brand claims to implementing all components of this proposal or has agreed to implement them within Play Fair's proposed timeframe.
The brand is currently implementing or has agreed to implement some of the essential components of the proposal but has refused to implement, has overlooked, or has raised issues with one or more important components; or, the brand agrees to implement the proposal but not within Play Fair’s proposed timeframe.
The brand has refused to implement the essential components of the proposal.
The brand has misunderstood or failed to comment on the proposal; or the brand is considering the proposal, but has yet to make a decision.