Pay is no doubt still lousy, but this step towards worker empowerment seems a gain beyond immediate monetary gains. Do folks find the collaboration between the AFL-CIO and Reebok problematic or a useful new model?
--Nathan Newman
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Reebok and American Center for International Labor Solidarity Partner in Labor Rights Training for Workers in Indonesia
STOUGHTON, Mass.--(BUSINESS WIRE)--April 6, 1999--Reebok International Ltd. (NYS: RBK) announced today the successful completion of a pilot training program by the American Center for International Labor Solidarity (ACILS), the arm of the AFL-CIO that promotes labor rights overseas, to teach freedom of association skills to workers in five factories making Reebok footwear and apparel in Indonesia.
This unique collaboration between a global corporation and a labor rights organization is a first in Indonesia, and the Stoughton, Massachusetts-based corporation believes the collaboration holds promise in facilitating workers' awareness of their rights, to organize and negotiate more effectively with management, and to learn about collective bargaining and other labor management interactions used effectively in other parts of the world.
Reebok worked with the ACILS to facilitate the labor rights training. A small group of line workers and union representatives with demonstrated leadership skills were chosen by unions to participate in two intensive, interactive four-day training sessions. Reebok ensured that participants would be allowed time off without penalty and were not punished in any way for participation. Reebok followed up with workers to make sure the training was useful and made recommendations to the ACILS based on evaluations from participants. Organizers ensured that both female and male representatives participated in the training program.
The right to freedom of association is a fundamental liberty that is often restricted in many parts of the world. The completion of this pioneering program is especially important because of the constraints historically placed on workers' right to freedom of association in Indonesia.
"Based on the positive comments from both workers and union representatives, we can say that this initial program was a success," said Doug Cahn, Vice President, Reebok Human Rights Programs.
"The training awakened us from our long sleep and helped us to recognize who we really are," said Syamsul Taufik, a worker at the P.T. Kukdong International, an apparel factory outside Jakarta. Another participant, Ujang F. Nana said, "this training is very valuable because we are given information that may help us to improve relationships between the management and the union."
Three additional training sessions are scheduled for this summer and will focus on negotiations, trade union finance and administration, and shop steward leadership. In addition, Reebok will explore ways to expand its collaboration with the ACILS in other countries in Asia.
"When the ACILS approached us about collaborating on this program, we saw it as an opportunity to strengthen the implementation of our code of conduct which states in part: `Reebok recognizes and respects the right of all employees to organize and bargain collectively.' Any thoughtful global company struggles in certain countries to make these words a reality. This unexpected collaboration between a global company and a labor rights organization is an example of diverse voices that can join together to help workers in countries where worker rights are not fully respected," said Cahn.
Support for labor rights training is part of Reebok's ongoing efforts to ensure that the perspective of workers is integrated into the workplace policies and practices of factories. Another innovation, the Reebok Worker Communication System, has been operating since 1997, providing a secure channel for workers to communicate their concerns about workplace conditions directly to Reebok, even though the factories are independently owned and operated. The program is operating in 21 factories in four countries. The Worker Communication System has successfully resolved a variety of worker problems while assisting in the development of factory problem-solving mechanisms.
"When we develop programs that we believe will improve conditions for workers, we want to share it with other companies so that more workers will benefit. Within the next two months, we intend to share our experiences in facilitating the worker training program with other interested companies in Indonesia through a series of informal meetings and by making kits available explaining how to implement a Worker Communication System in factories used by global brands," said Cahn.
Workers Wages
In response to the particular severity of the financial crisis in Indonesia last year, Reebok was the first footwear manufacturer to require factories to increase workers' wages, a policy that affected almost 30,000 workers. Following Reebok's lead, other footwear manufacturers raised wages.
As of April 1, 1999, base pay for workers in factories producing footwear for Reebok in Indonesia are 24.3% above the new government-mandated minimum wage. In addition to base pay, cash and in-kind compensation in the form of meals, transportation allowances and attendance bonuses, (available to all workers regardless of skill or length of service) increase the total compensation package for a 40-hour workweek to nearly 43% above the new minimum wage. Workers also receive Sembako packets, which include rice, sugar and other staples.
Support for Imprisoned Activist
Two weeks ago, Reebok CEO, Paul Fireman made public a letter to Indonesian President B. J. Habibie urging the release of imprisoned Indonesian labor rights activist, Dita Sari. "Dita Sari has been particularly effective at raising issues on behalf of factory workers, and her voice deserves to be heard," said Fireman in the letter sent to Habibie in January. No response has been received.
Reebok International Ltd., headquartered in Stoughton, Massachusetts, is a leading worldwide designer, marketer and distributor of sports, fitness and casual footwear, apparel and equipment.
CONTACT:
Ruder-Finn, New York
Abigail Golden-Vazquez, 212/593-6425
or
Reebok, Stoughton
Nancy Moss, 781/401-7121 .
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