The contract factory, one of 665 in Nike’s supply chain, has committed to addressing problems identified in separate investigations published last week by the Worker Rights Consortium and Fair Labor Association. In a lengthy statement, Nike said its decades-long commitment to worker’s rights is “unwavering.” The sportswear giant already has sanctioned the factory by reducing orders.
In the source link, Matt Kish reports that a Nike factory has been accused of worker mistreatment.
While the sole focus should be on the mistreatment of workers making Nike products, it should be noted that the factory in discussion also makes products by other brands. Nike, however, has a history that has been documented extensively and at this point Nike is preparing for a big Quarterly report next week where they have shifted their discussion on Futures and are attempting to re-inspire confidence in the brand after a very difficult year. This report brings to light evidence of continued issues with the brands manufacturing and actually empowers the discussion created by President-Elect Trump and his call to return manufacturing to the US. Click through on the source link to read the report.
Note: After hitting a low of 50.70/share on November 30th, the NKE stock had begun to rebound at 52.30 today. This could affect investor confidence although it is an issue for many brands aligned with the Vietnam factory.
