Nike is investigating a "old age case." The matter concerns its Chinese suppliers who subcontracted the hand-stitched soccer business by hand from 2003 to 2007, resulting in a large number of orders falling into rural families in parts of China, including the participation of underage rural children in Nike soccer In sewing work. This incident closely resembles the case of child labor in Nike in Pakistan in 2006. At the time, a third party agency FLA (Fair Labor Association) surveyed SAGA Factories and found the fact that factories make heavy use of domestic workers and child labor. After the incident, under public pressure, Nike suspended contract with the SAGA factory. Nike China Press Spokesman Zhu Jinqian told the "China Business" reporter that the company received two complaints about the use of domestic workers and child labor in its foundry in 2007 and 2009, respectively, and conducted thorough and due diligence investigations. So far, no sufficient evidence has been found to substantiate the related complaint. The survey will continue. The reporter's survey results show that from 2003 to 2007, a large number of hand-stitched Nike soccer orders subcontracted by their suppliers, located in Anhui Jinzhai, Jiangsu Huaian and other areas of rural families. As you can see in the pictures in this issue, the children of Xuyou Town, Huaian in Jiangsu Province, sew Nike soccer at home in the garden after school. Each time a soccer ball is sewn, they can get 5 yuan. Foundry illegal employment A Ping (a pseudonym) was formerly a former executive at Nike hand-stitched soccer in China. During his tenure, many fake employee roster and factory capacity, it is handed to Nike through his hand. At the time of separation, in order to protect himself, Appin retained the evidence. Followed by the clues provided by A Ping, "China Business" reporter then found a number of key Nike football supply chain, the incident began to become clear. Nearly four years before and after 2006, with the holding of the World Cup in Germany, the demand for Nike football started to magnify, and the football orders that it placed on foundry enterprises such as Shanghai Wonder Sports Goods Co., Ltd. also began to gradually increase. In order to save costs, Shanghai Wande and other foundries have opened factories to expand production capacity in Huai'an, Wuyuan, Jiangxi and Jinzhai in Anhui Province. At the same time, a large number of manual football sewing processes have been subcontracted to villagers near the factory. This is an extremely simple labor method. The factory does not sign labor contracts with the villagers and does not agree on the working hours of the villagers. Home women and rural children at the bottom of the entire supply chain, in their hands, completed the manual sewing process of Nike football. Each completed a football sewing, they can get 5 dollars. According to one person involved in the incident, many local rural women often sting their bodies in a fixed position and sew late into the night in order to earn 5 yuan more. Some children learn sewing handmade football after school or during summer and winter vacations to help families earn more money. The largest beneficiary appears to be the factory. They completed the Nike order with minimal cost, did not have to pay workers for overtime, and did not have the risk of being checked for child labor. FLA (Fair Labor Association), an unnamed coordinator in China, told the "China Business Daily" reporter that events such as "sweatshops", child labor hiring and abusive labor that have taken place globally before show that such " Light Asset Company "faces great risks in terms of social responsibility. On the one hand, Nike has the responsibility of supervising the normative labor of foundry factories, but on the other hand, foundry factories often do things that brand names do not allow to maximize profits. It is worth mentioning that Nike itself is one of the sponsors of FLA. After experiencing the accusations of a series of "sweatshops" in the 1990s, Nike was "bought out" by some social organizations and campus groups in Europe and the United States. After 2000, Nike gradually compromised with the "Anti-Nike Movement, " established a social responsibility department and started to take part in fair labor activities with a positive attitude. A Ping believes that the main responsibility should be Nike to bear, "If not Nike will purchase costs so low, suppliers will not run the risk of reducing the factory rating to do such things." Supply Chain "Pyramid" Prior to 2006, in the Nike North China CR sector (social responsibility department) for the record of hand-stitched football processing plants, Jiangxi Wande 000 ball system Co., Ltd., Jiangsu Yixing Fangzhuang Wande ball factory, Jiangsu Huaian Huaiyin District Xu Town Wande ball factory three. These three factories are invested by Shanghai Wande Sporting Goods Co., Ltd. Shanghai Wande Sporting Goods Co., Ltd. is one of the largest suppliers of Nike hand-stitched football in China. Founded in 2001, Jiangxi Wande is located in Sikou Town, Wuyuan County, Jiangxi Province, China's "Most Beautiful Country in China." Jiangxi Wande overall business line is as follows: Shanghai Wande is responsible for negotiating orders with customers such as Nike. The order is posted, cut and printed by the factory. Jiangxi Wande pulls the ball to Jiangxi and applies the company's local network in Jiangxi Province to transport the vast majority of films Jingdezhen, Wuyuan adjacent to some of the processing points, according to the end of the production chain, but some processing plants in order to profit or progress, the ball will be distributed to the hands of nearby villagers. Handmade football production has its own particularity, the process sub-posted cloth, cutting, screen printing, sewing, plastic bile, sealing, finishing and packaging. Sewing is the only process that can not be mass-produced by the machine - it requires manual sewing with sewing threads. The value of this process will eventually be reflected in the terminal price of Nike football. Beautiful windows in the mall, the same material and style of Nike football, the price of ordinary football is 198 yuan, while the price of hand-stitched football is 298 yuan. Jiangsu Wande and Jiangxi Wande business model is similar. November 2005, Shanghai Wande Huai'an in Jiangsu Huaiyin District Xu Town has opened in Huaian Huaiyin District Wande Ball Factory, and after Nike's third-party FAIRLAND certification, began to engage in Nike hand-sewn football production. However, prior to the third-party audit, the village-run enterprises of Hanzhuang Village, Xuyou Town, the locality, had conducted business cooperation with Shanghai Wande for nearly two years. Local enterprises took the ball from Wande Company and distributed it to the local rural women who stayed at home for ball seaming. At the "processing point", they finished the rubber sealing and sealing procedure and finished the finished football, and returned to Shanghai Wande . As a large number of women and children left behind, Huai'an, Shuyang, Sihong, Siyang, Haimen and Taizhou in the northern part of Jiangsu Province have now become one of the largest manufacturing bases for handmade football in China. Of course, all these acts of suppliers, are without telling the Nike privately. Nike in each processing factory will be posted "Supplier Code of Conduct," which has a clear article requirements, Nike orders are prohibited from subcontracting to the unverified family workshops. Nike's suppliers understand the consequences of violating these rules. Supplier of digital games In 2006, the World Cup held in Germany, football began a four-year carnival. Nike, which had previously been hit hard by "sweatshops" around the world, stepped up regulation of suppliers and their factories during this time. Anyone familiar with Nike's strong business philosophy knows that Nike will never hand over a single product order to a single factory. In doing so, you can increase your pricing power and, second, reduce your business risk. On June 29 and 30, 2006, John Wilson, Production Director of EQUIPMENT at Nike headquarters in the United States, and Julie Zhu from Guangzhou Representative Office conducted a surprise audit on Jiangsu Wande and Jiangsu Best Sports Products Co., Ltd. At the time of the audit, John Wilson and Julie Zhu found in the factory records that many employees were able to sew up to eight or nine Nike soccer balls within eight hours, and even a factory employee could sew eleven soccer balls. It is clear to those who are familiar with hand-stitched soccer that the sewing procedure of soccer, although not technically demanding, can be months of training from the very beginning to becoming a skilled worker. Even skilled workers, the normal production within 8 hours is only 4 football. According to a slightly ridiculous industry insider, "If a worker can sew eleven Nike football within eight hours, can apply for a Guinness Book of Records." In March 2007, Robert Zhou, Social Responsibility Manager of Northern Region of Nike's Shanghai Representative Office, went to Jiangsu Province to review again after receiving the news. This time they vetted in the audit, the day after the audit quietly left a colleague in the local, the next morning at the entrance of Jiangsu Province, 100n is being handed over from the factory to the factory employees blocked and shot Many pictures were taken and the fact that the plant was privately owned and used by domestic workers was identified. September 21, 2009, "China Business" reporter called Robert Zhou, hoping for more information. Robert Zhou declined a reporter's interview on the grounds that the company has a spokesman system. The actual situation is that Nike suppliers made a fake data. It is the most common means of counterfeiting to establish fake employee records, alter false records of attendance, fabricate production records, falsify employee signatures, and train employees to respond to Nike's inquiries. Usually in response to Nike check, the factory will use the price of 10 yuan / day, the nearby rural women will be called to the factory, made the illusion of working in the factory. However, fraud also needs to use a lot of resources, such as staff's name, address, ID number and so on. "Sometimes the output of the staff actually can not be digested, had to create a staff 8 hours sewing nine football production records," A Ping told reporters. Nike was investigated by the serious illegal processing of the situation, Jiangsu Benn gradually withdraw from the Nike soccer foundry business. Subsequently, Anhui Jinzhai County, Anhui Xin Ye Sporting Goods Co., Ltd. has also been detected in a similar situation. According to sources, the private chat of Shanghai FAIRLAND, a third-party verification institution designated by Nike, was referred to. When they reviewed Anhui Xin Ye, they went all the way to the junction of the three provinces of Anhui, Henan and Hubei (deep in the Dabie Mountains) and found many domestic workers . September 25, the reporter called Shanghai Wande Sporting Goods Co., Ltd. and its trading company Shanghai First Zhen Trade Co., Ltd., but the person in charge of the phone has been unanswered. According to report, July 16, since the Nike self-examination has begun, Shanghai Wande Sporting Goods Co., Ltd., the two responsible person to Nike company to explain the situation. At the Nike China Social Responsibility Department's office, the two executives explained that the order was made by factory workers and took home without any intention from the factory.