April 13, 2005

Worker rights group asks: If Nike can disclose factory locations, why can't Canadian retailers?

The Toronto-based Maquila Solidarity Network is challenging Canadian retailers and the Canadian government to follow Nike's lead and publicly disclose the names and addresses of all factories where apparel products sold in Canada are made.

This morning, the US sportswear giant that has been the subject of anti-sweatshop campaigns for the past decade announced it was posting on its website the names and addresses of all factories in its global supply chain making Nike branded products.

For the past four years, the Maquila Solidarity Network (MSN) and its coalition partners in the Ethical Trading Action Group (ETAG) have been calling on the Canadian government to make changes in federal labelling regulations to require apparel companies to publicly disclose factory locations where apparel sold in Canada is made.

According to MSN Policy Analyst Bob Jeffcott, "Canadian retailers have lobbied hard against factory disclosure regulations, and unfortunately the Canadian government has bought their argument that factory locations are proprietary information." According to Jeffcott, "Nike's announcement exposes the Canadian industry's argument for what it is, a blatant attempt to hide factory conditions from public scrutiny."

In November 2003, the federal government convened a roundtable meeting involving industry, labour and NGO representatives to discuss the ETAG proposal for factory disclosure regulations and other policy options to address worker rights abuses in the global garment industry. One and a half years later, Industry Minister David Emerson has not yet released the report and recommendations from the roundtable meeting.

According to Jeffcott, Nike's decision to disclose factory locations in its global supply chain is part of a growing trend toward greater transparency among major brands that have been the focus of anti-sweatshop campaigns. "Companies like Nike and Gap are now admitting that worker rights violations are a systemic problem in the global garment industry that need industry-wide solutions," says Jeffcott. "As a result of anti-sweatshop campaigns, major brands are now more willing to disclose the findings of factory audits and corrective action taken. Factory disclosure is another important step in this process."

According to Nike's 2004 Corporate Responsibility Report, "disclosure of supply chains is a key to unlocking greater collaboration among brands and to creating the incentives necessary for factories to turn their CR performance into a point of differentiation."

According to Jeffcott, while increased transparency is an important step forward, Nike and other brands must now deliver on their promises to improve working conditions at the factory level. "Admitting there is a problem is a necessary first step toward solving it," says Jeffcott, "but concerted action is needed to eliminate sweatshop abuses. Unfortunately, Canadian retailers are still ten years behind their US and European competitors."

To access the Nike Corporate Responsibility Report and factory list, visit: http://www.nikeresponsibility.com/