Nike Sweatshops In Vietnam: Evaluation Of Negative And Positive Sides

Low-cost labor has been around for decades. That is because people want to buy cheap clothing rather than ethical clothing. “Made in Vietnam” is everywhere in the American footwear market. Shoes that were exported to the United States were estimated at $1. 2 billion in 2008 and $2. 9 billion in 2013.

There are various arguments for and against that Nike should allow low-cost labor in Vietnam. One reason for this view is that low-cost labor is a financial advantage for Nike. For many year, Nike has used outsourcing to make billions euros of profit. If they would produce more in America, the price for their products would be high and it would cause the customers to buy less products.

Another reason is that the revenue in the poor countries like Vietnam will be increased, because Nike is providing jobs for previously unemployed groups of citizens in these Asian countries. This is a benefit for Vietnam. When you buy cheaper products from the developing world, it doesn’t only make you richer; but also the people from the developing world.

Thirdly, the sweatshop system is not about what consumers want. It’s definitely not about what the workers want. Its main goal is to increase profits for manufacturers and retailers, to make the richest people even richer. We cannot blame the consumers for the working conditions, because it’s the company’s own decision to have such a bad working environment for the workers.

On the other hand, there are arguments against. Firstly, the income of the factory workers is lower than their living expenses. The mediocre employee earns about $37 a month which is way lower than the minimum wage of $72 a month, while the living expenses are about $535 a month. It would be hard to even buy bread from the local supermarket after the monthly rent and electricity bills.

In addition to that, the working environment in the factories are lamentable. Multiple violations at Hansae Vietnam were detailed in a report from 2016. They included verbal harassment, restrictions on toilet use and forbidden yawning. It was denied when the employees wanted to take a sick leave, even when ordered by a doctor. These mistreatments would, under usual conditions, be prohibited. Next to these mistreatments, common illnesses due to toxic solvents involve their lungs, skin and allergies by being in the factory all day long.

But this was not the first time in history that Nike has harmed the human rights of their employees in Vietnam. In the case of the Tae Kwang Vina factory in the late 1990’s, where the Tae Kwang Vina factory where they have found out that toxic solvents and glues used in manufacturing caused headaches, dizziness, and other sicknesses between workers.

Finally, sweatshops do not actually reduce poverty. That’s because the people who are forced to work must spend most of their paycheck on food for their families to survive.

So, on balance, I think that Nike should not allow low-cost labor. Nike should make the factories a better working environment for the employees by keeping an eye on how they treat their employees. Their income should be higher so that they could have enough money to live off and to take care of their family.

References

1. Bhatnagar, D. R. (2003, March 1). Nike in Vietnam: the Tae Kwang Vina factory. Retrieved from The World Bank: https://siteresources. worldbank. org/INTEMPOWERMENT/Resources/14826_Nike-web. pdf
2. Brinkley, J. (2014, November 21). Jobs for Low-Skilled Workers Moving from China to Vietnam. Retrieved from Forbes: https://www. forbes. com/sites/johnbrinkley/2014/11/21/jobs-for-low-skilled-workers-moving-from-china-to-vietnam/#5c4352b7158b
3. Dimitritrijevic, N. (2018, March 19). Manufacturing: China vs. Vietnam (Pros and Cons). Retrieved from Linked In: https://www. linkedin. com/pulse/manufacturing-china-vs-vietnam-pros-cons-nick-dimitrijevic
4. Do something. (n. d. ). 11 FACTS ABOUT SWEATSHOPS. Retrieved from Do something: https://www. dosomething. org/us/facts/11-facts-about-sweatshops
5. Eurostat. (n. d. ). Saigon. Retrieved from https://www. saigon. com/nike/fact-sheet. htm
6. Lynn R. Kahle, D. M. (2000). Good morning, Vietnam: an ethical analysis of Nike activities in Southeast Asia. Retrieved from Academia: https://www. academia. edu/24489166/Good_morning_Vietnam_an_ethical_analysis_of_Nike_activities_in_Southeast_Asia
7. MacGuil, D. (2018, September 7). Do Nike Factory Workers in Vietnam Earn 20 Cents Per Hour? Retrieved from Snopes: https://www. snopes. com/fact-check/nike-workers-pay-kaepernick/
8. Patel, D. (2017, Juli 17). The Pros And Cons Of Outsourcing. Retrieved from Forbes: https://www. forbes. com/sites/deeppatel/2017/07/17/the-pros-and-cons-of-outsourcing-and-the-effect-on-company-culture/#4b6bee8d562d
9. Rasmussen, P. (2018, June 21). Advantages of Manufacturing in Vietnam. Retrieved from East West: https://news. ewmfg. com/blog/advantages-of-manufacturing-in-vietnam
10. Vietnam, M. t. (2019). What is the cost of living in Vietnam. Retrieved from Move to Vietnam: https://movetovietnam. com/cost-of-living-in-vietnam/#tab-con-3
11. Wilson, D. L. (2013, September 19). Who really benefits from sweatshops? Retrieved from Climate & capitalism: https://climateandcapitalism. com/2013/09/19/really-benefits-sweatshops/