Nike Inc, world's biggest sneaker and sportswear maker, said falsified documents, underage workers and unpaid wages were problems encountered at suppliers in China, despite what experts say is one of top social compliance regimes in the industry.
The Oregon-based company’s difficulties highlight the deep roots of some of problems businesses face in manufacturing in China, particularly at a time of sharply rising costs and a stiffening legal environment.
In its first country-specific supply chain report, which it said focused on China because of upcoming Beijing Olympics, Nike detailed efforts it has been making to get suppliers to comply with its code of conduct and Chinese law, including a scheme to monitor Olympics-related suppliers this year.
“Like our partners in any other country, factories we contract with in China continue to face challenges as well,” observed the Nike report.
The report further listed several labour-related challenges, including falsification of factory documents, like payroll records, lack of effective grievance systems for disgruntled workers and hiring practices that did not ensure minimum age standards are met.
