JUST DO IT! Human trafficking in Nike's sweatshop factory in Malaysia

Summary

An undercover investigation reveals that workers at a Nike contractor factory in Malaysia were subjected to forced labor under appalling conditions. The workers, many from impoverished countries, were trapped by debt and had their passports confiscated. They were housed in overcrowded, unsanitary quarters and paid a meager salary. After the exposure by Seven News, Nike responded by moving the workers to better accommodations, refunding recruitment fees, and pledging to address similar practices in other factories. The scandal underscores the darker side of the global sportswear industry, highlighting the exploitation of vulnerable laborers.

Takeaways

• 😀 Nike contractor caught using forced labor in Malaysia, exploiting workers in poor living conditions.
• 😀 Workers from impoverished countries were lured by false promises and heavy debts to secure jobs in Malaysia.
• 😀 Workers' passports were confiscated upon arrival, effectively trapping them in forced labor contracts.
• 😀 The conditions for the workers were deplorable, with overcrowded, unsanitary living spaces and minimal pay.
• 😀 A secret undercover investigation revealed the stark contrast between Nike's public image and the reality faced by workers.
• 😀 Factory workers were paid only $45 a week, less than the cost of a single Nike t-shirt, while Nike stars earned millions.
• 😀 The workers lived in overcrowded conditions, with up to 26 people sharing a small room, and basic sanitation was inadequate.
• 😀 The workers had no legal means of escape, unable to afford to buy back their passports or pay off their debts.
• 😀 Nike responded publicly by promising to improve workers' housing and investigate the situation further.
• 😀 Following the exposure, Nike promised to move workers to better accommodations and refund recruitment fees.
• 😀 The scandal prompted global human rights organizations, unions, and legal actions, demanding better treatment and conditions for workers.

Q & A

What unethical practice was uncovered in the Nike contractor's factory in Malaysia?

An undercover investigation revealed that a Nike contractor in Malaysia was using forced labor, with workers being paid extremely low wages and living in squalid conditions. Workers were trapped due to debt bondage and had their passports confiscated, preventing them from escaping.

How were workers recruited to work for the Nike contractor in Malaysia?

Recruiters from poverty-stricken countries offered desperate individuals guaranteed work in Malaysia, but they had to pay an upfront fee equivalent to a year's wages. Upon arrival, workers' passports were confiscated, and they were trapped in debt, signing contracts they couldn’t understand.

What kind of living conditions did the workers face at the factory?

Workers lived in overcrowded, unhygienic conditions. They were crammed into tiny rooms, with up to 26 men per room, and shared filthy communal showers and toilets. The living spaces were described as barns, with poor sanitation and a lack of basic facilities.

How much were the workers paid for their labor?

The workers were paid only 45 Australian dollars a week, which is less than the cost of a single Nike t-shirt. This extremely low wage made it impossible for workers to pay off their debts and escape the exploitation.

What action did Nike take after the investigation exposed the conditions?

After the investigation, Nike responded by acknowledging the unsuitable housing and pledging to move hundreds of workers to better accommodations. They also promised to refund recruitment fees, grant workers access to their passports, and provide free flights for anyone who wanted to leave.

What did the workers have to do to escape their situation?

To escape, the workers needed to buy back their passports by paying off their debts, but given their low wages, this was nearly impossible. The workers were effectively trapped in a cycle of exploitation.

How did the media exposure impact Nike's response?

The media exposure through the 7 News report pressured Nike to take immediate action. The company flew an investigation team to Malaysia and made commitments to improve the workers' living conditions, which included moving them to private apartments and providing compensation.

What legal actions were taken against Nike's practices?

Australian human rights activists and unions took legal action against Nike, demanding that the company return the workers' passports and allow them to leave the country if they chose. Lawyers also demanded that Nike cease its exploitation of foreign workers.

How did the community and unions respond to the issue?

The Australian Vietnamese community and unions strongly condemned Nike's practices, with spokespeople emphasizing the importance of returning workers' passports and ensuring they were no longer trapped in forced labor. They also called for better treatment and fairer wages.

What was the ultimate outcome for the workers after the report was aired?

Following the media report, Nike moved hundreds of workers to better living conditions and promised to compensate them for the recruitment fees. The workers were also given the option to leave the country with their passports and free flights if they chose to do so.