A group of unions representing more than 3 million workers in Canada and the United States has asked the United Nations to sanction Nike, claiming the Beaverton-based company violated Canadian worker rights at its hockey subsidiary.
The unions contend Nike has "shown little willingness to respect association and bargaining rights" at its Bauer Nike Hockey unit, based in Greenland, N.H. In doing so, the unions allege, Nike has broken a key principal of the U.N. Global Compact, an initiative that includes businesses identifying themselves as socially responsible. Nike joined the compact in 2000.
Nike officials on Thursday dismissed the allegations and said the company treated fairly all of its Canadian employees. The Global Compact doesn't cover a business restructuring, which its hockey unit is undergoing, said Michelle McSorley, a Bauer spokeswoman.
The dispute, centering on Nike operations in a developed economy, marks a rare departure from the typical complaint directed against Nike's foreign manufacturing methods. For years, activists have decried Nike's use of cheap-labor contract factories in third-world nations to make its products.
In a letter addressed to U.N. Secretary-General Kofi Annan and dated Wednesday, the unions contend that Nike has reduced the size of Bauer's bargaining units through outsourcing, routinely violated terms of collective bargaining agreements and failed to engage in "genuine" dialogue with unions representing Bauer Nike Hockey employees at unionized factories in Canada.
The U.N. compact has no mechanism to enforce compliance with its principles, but the unions nonetheless urged Annan to review Nike's affiliation and raise the issue with the company.
Last fall, Nike blamed stiff competition on the decision to close two Bauer factories, downsize a third and lay off a total of 321 employees from all three -- about a third of the unit's staff. The plan for layoffs in the restructuring, almost two-thirds completed so far, has since been curtailed to a target of 288. Laid-off workers are receiving a "fair" severance package and outplacement counseling, McSorley said.
"The changes are necessary for the long-term health of our company," McSorley said. More than half the gear produced by Bauer will still be made in Canada after the restructuring's completion, expected by year's end, she said.
None of Nike's 23,300 workers worldwide is represented by unions, with the exception of about 550, or three-fourths, of the North American employees at its Bauer unit, according to Nike's 2003 annual report. When Nike purchased Bauer in 1995, the hockey apparel and equipment maker employed more than 1,100 unionized workers at three Canadian factories, according to the unions calling for the U.N. censure.
The letter to Annan was signed by union presidents of Canadian Labour Congress; Glass, Molders, Pottery, Plastics & Allied Workers International Union; Industrial, Wood and Allied Workers of Canada; and the United Steelworkers of America.