I think this is definitely a loss for pakistan. However, I have received this from an Internal source and I do not have any links to this item. Can anyone confirm if this is true.
Also, what are the child labour laws in pakistan?
Islamabad, Pakistan — Nike Inc.'s decision to cancel orders from a Pakistan-based producer of hand-stitched soccer balls because of labor violations could cost the supplier more than 4,000 jobs, its general manager said Tuesday. Saga Sports, which employs 8,000 to 9,000 people, exported products valued at 2 billion rupees (almost $33 million) last year, said the company’s general manager, Rizwan Dar. He said soccer balls for Nike accounted for 70 percent of the company’s business. “If we don’t have the Nike deal, we don’t have further options, and it will be difficult to run the show with this huge volume of people,” Dar told The Associated Press. “I fear more than half of our employees could lose their jobs.”
*Nike CEO and President Mark Parker says the contract factory has persistently broken its commitments and irrevocably breached its trust with Nike.
Nike, the world’s largest maker of athletic apparel, says Saga Sports was having soccer balls made inside private homes in Pakistan, where Saga is based. Nike says it has a long-standing policy against such practices. This, because of the potential for using under-aged workers and the inability to ensure safe working conditions in home-based settings.*
The point is that the company was stupid to do things that jeopardized its relationship with Nike. I guess they thought they were too important and were shown that they were not.
sadly the workers als lose because they will have to find new jobs, but it serves the company right, dicking around with major companies not only is a limiting move for the supplier itslef but this reputation can start impatcing other suppliers ..even to othr companies as well.
I'd rename it "Saga Sports negligence costs jobs in Pakistan"
If anyone remembers properly, they've been accused of this for well over 7 years now. In recent memory, the last time they promised to stop their abuses was in 2005. When you risk harming your largest buyer's already shady reputation, and then ignore their pleas for reform - you're asking for a kicking.
It's about time they got shut. Too bad the people of sialkot have to deal with the downfall. Their whole "community based stitching" effort was a great front while it lasted.
Yes, I understand the larger context of what child labor means as sustainance for some families, however, when this company won such a lucrative contract from a major global player, they should have made all efforts to meet the conditions of that contract.
allegations of bonded labour child labour, unfavourable working conditions etc can cost a comany big time in lost sales if consumer groups go after them.
It would have been a tough call for Nike too, these companies have streamlined their sourcing and switching suppliers or getting nw suppliers costs them time and effort and is of much hassle.
Alot of my family is into the soccer production business in Sialkot. I do admit I have seen some kids at thier factories, but its not like how the west is portraying it to be, they are extremely well paid and treated very well, and apparently theres this thing about these kids stitching in a way that grown ups cannot... Also, most of them goto school as well, apart from being paid very well. Nevertheless, they shouldnt be working...
btw, saga was the biggest sports company in Sialkot...
It should be illegal to emply kids IMO. Give these guys a chance, not their fault born into poverty. Otherwise it's just a viscious cycle.
If you employr kids you are not going to say we beat them up, crap working conditions etc... Salvemasters used to say how well they look after their salves. Did they ever?
The reason they want kids is becuase of the small fingers that can get into smaller gaps. BTW the best footballs now dont have any sewing glued together in machines. Made on a automated line in Germany for ~ £100 a piece. No suprise their that pakis never thought of developing anything themselves.
I would say its not about child labour as, only company who has anti child labour setup in Sialkot, They have setup many stiching centres near people villages, so they dont have to send balls to home stich and hence done by kids. all the stiching centres have school and dispensery attached to it for workers welfare. only adult employed by stiching centres.
Saga downfall started when its founder was passed away in accident or murdered. now his uneducated wife and other people who running it cant handle nike like customers and every one in management is only interested in making money. hence nike is not very happy with it, and certainly dont see future growth with trust. for nike it will not be easy to find an other worlds largest(Saga) hand stiching vendor off the shelf. you might see another Sialkoti company getting the contract from nike.
well soccer ball industry is dieing in pakistan, buyers are now looking at china and thailand, gov. needs to step in and support them before its completly whiped out,
govt cant step in and make sure that business operate in a responsible manner on a daily basis.
the issue with Pakistani producers is that they dont think long term, short term minting mind set means that they would slack on quality and thus piss off their buyers. Its a constant problem, and retailers that I have consulted with have all noted that, these include Sears and Target.
Every major country has its own standards like ASTM, BS, etc and laws pertaining to them. Pakistan needs to have an independent authority on standards and their implementation. We have none.
For nstance, when I see oil tankers roaming on the roads with oil spilling down, it really feels heart breaking. Why just you can'tt use a standard guage of metal sheet on it for all oil tankers in Pakistan. Unltil, we make standards we will keep cheating and trying minting money.
I heard companies here certify them from International organisations on standards and do not implement them. Only use their certificates.
when it comes to standards, offices of companies like UL, SGS, Intertek (ITS/ETL), BV etc are operating in Pakistan but on small scale. Pakistani companies do NOT want the oversight and avoid them. I worked for over 3 years in the international trade area where standards .. process (ISO9001 types) and product (UL, CSA, ERL marks) were needed and Pakistan was just a tough place. companies did not want to do it ..so guess what... they were not on the radar of sourcing managers.
Our industries need discpline and profesinalism desperately.