Labor problems

Posted by Rob Walker on December 23, 2006
Posted Under: Ethics,Industry and stuff

You may have noticed a headline here or there last month, noting that Nike was ending a contract with one of its offshore suppliers, a Pakistan-based manufacturer called Saga Sports. The problem was evidence that Saga was using at least some child labor.

The Christian Science Monitor has an article taking a more detailed look at this, written by David Montero. “By severing its contract with Saga, Nike is likely to score moral points with its customers in the West,” Montero writse. “But it’s also likely, observers agree, to sink Saga, a corporate giant that makes about 6 million of Pakistan’s annual production of 40-million soccer balls,” employs thousands of stitchers, and depends heavily on Nike as its top customer.
Saga is based in Sialkot, Pakistan (population: 3 million), where the article says that 80 percent of all soccer balls are produced, adding up to a $210 million business category that employes around 45,000 stitchers. (“For as long as there have been soccer balls in Sialkot,” which is more than 100 years, “the hands of children have stitched them,” the piece adds.)

Obviously the article doesn’t suggest that child labor is okay, nor does anyone quoted in the piece say so. But it’s a pretty interesting look at a problem that’s more complicated than it might first appear to be. Check it out.

Further diversion may be found at MKTG Tumblr, and the Consumed Facebook page.

Reader Comments

It’s sad to see the effect that one company can have on a whole community, let alone a whole country. This story is a good example of a need to diversify. Just as with countries in Africa the effect of a major company like Nike could bring much help to a community but what government needs to do is nurture this relationship as well as other alternatives even within the same industry.

As a business person myself, I understand Nike’s position, however they also need to know that just because they can cut and run, doesn’t mean they need to. Somehow by doing this they hurt their image with the Pakistani people as well. Ahh the joys of being a successfull company. I can’t wait for my turn.

#1 
Written By Kofi Annan on December 23rd, 2006 @ 2:29 pm
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