UNITED STATES: Nike cuts support to universities
Footwear and sports clothing giant Nike has cut millions of dollars in sponsorship money to three prominent US universities. The universities claim the move is in retaliation for their support for workers' rights in Nike's factories worldwide, a claim the company denies.
Nike has partnerships with an estimated 200 universities in the US worth millions of dollars, in exchange for which it receives the right to outfit the colleges' often popular sports teams, guaranteeing prominent publicity for its logo.
The company is incensed at the activities of the Workers Rights Consortium (WRC), a student-led group trying to get universities to be more pro-active in monitoring the conditions in the overseas factories of those companies which provide their sports outfits.
All three of the universities hit by Nike's action support the WRC's anti-sweatshop stance.
A spokesperson for the company told the BBC's World Service that Nike makes no secret of its dislike for the group, accusing it of trying to dictate terms to the clothing industry.
Nike has been widely criticised for conditions in its overseas factories, where it pays very low wages for goods which retail for very high prices.
The company says it has made many positive changes in the last few months, including raising wages for its Indonesian workers by 70% and setting 18 as the minimum age limit for the workers in its footwear factories. Its opponents claim the moves are mainly PR attempts to divert criticism.