We measure performance based on focus factories taking part in human resources management training that incorporates a segment on Freedom of Association.
Going forward, the three targets tied to Human Resource Management training will be assessed with a single metric tracking the number of focus contract factories that have completed training.
Our Approach
We believe in the rights of workers to associate freely and bargain collectively. However, protecting these rights remains a persistent and fundamental compliance challenge in the industry. We see three important opportunities for Nike to support improvements in this area:
- Working with contract manufacturers to encourage them to engage in worker-management dialogue,
- Sharing best practices to improve factory grievance systems
- Directly intervening where specific Freedom of Association issues arise
Many challenges are beyond our ability to impact significantly, but we continue to address them when possible. These issues include:
- The complex and varied legal framework for Freedom of Association from country to country
- The varying degrees of effectiveness, transparency and good governance within union representation, and a need for local unions to build capacity to be effective and constructive partners with management
- The need to educate contract manufacturers - to varying degrees - on the role of freedom of association and collective bargaining
To address these issues, we are taking several important steps:
- Clarify. We have developed a deeper and more clearly defined position on Freedom of Association and the broader topic of worker-management dialogue on working conditions and worker grievances. Like others, we continue to grapple with the challenge of promoting free association in countries where legal or political constraints prohibit or limit these rights for workers
- Train. We have developed Freedom of Association training for our compliance staff and identified mechanisms for delivering this training to factories. The training was based on stakeholder input as well as country-specific profiles we developed to capture a range of issues, including legal requirements, trade unions and NGO concerns regarding the country's practices, information on specific Freedom of Association issues within the Nike supply chain. The training aims to increase understanding among our field staff of FOA requirements and to better equip them to work with contracted manufacturers to address FOA issues and improve labor relations
- Build. In FY07-09 we integrated Freedom of Association content into the human resource management training being implemented with focus factories. The training segment also includes a discussion of ILO principles on FOA, the tripartite framework, and sharing best practices around grievance systems and worker-management communication. We believe that training for contract manufacturing management and the HR function is a key to improving conditions and the worker-management climate overall. We also believe that this type of training is the best available way to increase the overall capacity for contract factory employees - both current and future ones
On the Horizon
We continue to offer training to contracted manufacturers on FOA as part of our Human Resources Management efforts. We also continue training our own staff and working with others in the industry, with governments and international organizations to improve understanding and application of Freedom of Association.