MGT372 - 3. An income of $2.28 a day, the base pay of Nike...

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3. An income of $2.28 a day, the base pay of Nike factory workers in Indonesia, is double the daily income of about half the working population. Half of all adults in Indonesia are farmers, who receive less than $1 a day. Given this, is it correct to criticize Nike for low pay rates for its subcontractors in Indonesia? Nike is a worldwide global corporation that has its shoes manufactured on a contract basis in places like Asia, China, and Vietnam and Indonesia. Although it does not actually own any of the manufacturing locations, it has long been accused of having its products manufactured in facilities that exploit workers. One of the major clams from a number of agencies and organizations throughout the world that the workers who manufacture Nike shoes are denied the basic essentials of living—a fair wage and decent benefit. An income of $2.28 a day, the base pay of Nike Factory workers in Indonesia, is double the daily income of about half the working population. Half of all adults in Indonesia are farmers, who receive less than $1 a day. Given this, is it correct to criticize Nike for the low pay rates of its subcontractors in Indonesia? Each country has their own which is regulated by the labor laws in each country. Daily rates are different according to the skill of workers, type of city the worker lives and works in and the prices of essential commodities in the city and state. For example, the daily wage of workers in factories manufacturing Nike shoes may be higher than farmers in the same city and or state. If
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This note was uploaded on 06/29/2011 for the course BBA 202 taught by Professor Svd during the Spring '11 term at Ahsanullah University of Sci & Tech.

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MGT372 - 3. An income of $2.28 a day, the base pay of Nike...

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