Help

Nation Topics - Corporations

Topic Page

Nation Topics - Corporations

Articles

News and Features

The Texas company has been a scandal in other countries for a long time.

(A Houston version of the Irish folk song)

Oh, Kenny Boy, your friends are disappearing.
They don't know you, much less your kvetchy wife.
Yes, it's sad when pols that you've been shmeering
Now hope that you'll get twenty years to life.
They sang your song: They passed deregulation.
They passed your laws. They bent the regs your way.
But now they track your every obfuscation.
Old Kenny Boy, their Kenny Boy's now Mr. Lay.

Enron, maker of big promises and big donations, stands revealed as a four-flusher.

Is the Enron story one of outrageous mendacity or stupefying ignorance?

Having simmered on the back burner through the aftermath of September
11, Congress's effort to obtain records from Vice President Dick
Cheney's energy task force has now reached the boiling p

Right till the end of January, Dita Sari, an Indonesian in her late 20s, was preparing to fly from her home near Jakarta to Salt Lake City to bask in the admiration of assorted do-gooders and celebrities mustered by the public relations department of Reebok for its thirteenth annual Human Rights Awards, overseen by a board including Jimmy Carter and Kerry Kennedy Cuomo. Make no mistake, the folks--usually somewhere between four and six--getting these annual Reebok awards have all been fine organizers and activists, committed to working for minorities, the disfranchised, the disabled, the underdogs in our wicked world.

Dita Sari's plan was to proceed to the podium in the Capitol Theater in downtown Salt Lake City, on February 7, and then, when offered the human rights award, reject it.

Now, this annual Reebok ceremony isn't up there with the Nobels, or the genius grants from MacArthur. Despite Reebok's best efforts, it's definitely a second-tier event. Nonetheless, it has paid off for Reebok. Says Jeff Ballinger, an antisweatshop activist who's organized with shoe workers in Indonesia for the past thirteen years, "With this kind of ceremony, Reebok gets its name into respectable company. When they give a prize to someone like Julie Su, a lawyer for immigrant workers in California, people who wouldn't be seen dead in Nikes are impressed."

Dita Sari got picked by Reebok's judges because she defied her government on the issue of independent trade unions. In her own words: "In 1995, I was arrested and tortured by the police, after leading a strike of 5,000 workers of Indoshoes Inti Industry. They demanded an increase of their wages (they were paid only US $1 for working eight hours a day), and maternity leave as well. This company operated in West Java, and produced shoes of Reebok and Adidas."

She got out of prison in 1999. Since then she's been building a union in plants across Java. It was there that she got a good look at Reebok's contractors, the underbosses of all the apparel, footwear, computer and toy companies. These contractors run their plants in a notoriously harsh manner.

Reebok's flacks can brandish armloads of studies, codes, monitoring reports, guidelines and kindred matter, all attesting to the company's dedication to fair treatment of anyone making consumer items with the name Reebok printed on them. But nothing has really changed. "We've created a cottage industry of monitors and inspectors and drafters of codes," Ballinger says, "but all these workers ever wanted was to sit down in dignity and negotiate with their bosses, and this has never happened."

Due in large part to the efforts of the workers and Western allies like Ballinger's Press for Change, the daily wage in Indonesia actually went up more than 300 percent between 1990 and 1997, at which point the Asian economic crisis struck. Inflation wiped out all those gains. Workers' daily pay is now half what it was before the crisis hit.

These were the points Dita Sari was going to make when she got to Salt Lake City. Then she learned that Reebok intended to schedule her and other recipients for some public events before the actual award ceremony. Rather than let Reebok benefit in any way from her presence, Dita Sari pulled the plug and at last word is in Jakarta trying to raise relief money for workers left destitute by the worst flooding in decades. She's sent the speech she was planning to give at the awards:

I have taken this award into very deep consideration. We finally decide not to accept this....
       In Indonesia, there are five Reebok companies. Eighty percent of the workers are women. All companies are sub-contracted, often by South Korean companies such as Dung Jo and Tong Yang. Since the workers can only get around $1.50 a day, they then have to live in a slum area, surrounded by poor and unhealthy conditions, especially for their children. At the same time, Reebok collected millions of dollars of profit every year, directly contributed by these workers. The low pay and exploitation of the workers of Indonesia, Mexico and Vietnam are the main reasons why we will not accept this award.

But isn't Reebok at least trying to do something decent? The way Dita Sari sees things, the attempt is phony. All the awards in the world--all the window dressing with Desmond Tutu, Carly Simon, Sting, Robert Redford--doesn't alter the basic fact that workers in the Third World are being paid the absolute minimum to make a very profitable product. The labor cost of a $70 pair of sneakers made in China, Vietnam or Indonesia is $1 or less.

Is there such a thing as a virtuous sneaker? Ballinger cites Bata, a Toronto-based company that runs its own factory in Jakarta. Its executives sat down with the union and worked out a contract with significant improvements on issues that employees care about greatly, like seniority. Though the margin has fallen recently, wage scales are better than minimum. Instances of bullying and intimidation are far fewer. Bata's shoes are sold in Indonesia for what an Indonesian can afford: $10 or less.

Ten years ago another courageous Indonesian, Teten Masduki, was asked by the Levi Strauss company to broker a clinic to be built near a contractor's factory. Teten, uncompromising labor advocate that he is, refused, even though the assignment would have made him a local hero. His reason: a clinic wouldn't give the workers what they need, a voice, the power to bargain.

Teten Masduki and Dita Sari see the world clearly, a lot more clearly than the celebrities and activists massed at such events as the one organized by Reebok in Salt Lake City, which is already awash with Olympian bunkum about human brotherhood. Dita Sari turned down $50,000 from Reebok. Teten Masduki turned down a tempting position with Levi Strauss. These days he's been responsible for chasing out a corrupt attorney general from his post as head of Indonesia's Corruption Watch. Do-gooders should study these fine examples and stiffen their spines.

Enron's power project in India demonstrates who benefits from globalization.

(With apologies to Stephen Foster)

The Enron hearings stretch ahead,
Doo-dah, doo-dah,
Until the final soundbite's said.
Oh, doo-dah day.

Pols will posture night,
Pols will posture day.
They'll show the voters just how tough they are,
Browbeating some CPA.

They'll talk of all the laws they'll make,
Doo-dah, doo-dah.
And meanwhile they're still on the take.
Oh, doo-dah day.

Pols will posture day,
Pols will posture night.
The guy who's shmeered them for a dozen years
Now is the guy they'd indict.

George W. Bush must be feeling an acute sense of déjà vu these days, as the dubious dealings of the accounting firm Arthur Andersen, LLP take center stage in the Enron scandal.

Blogs

While the tech world fawns over the new iPhone 6, labor abuses abound at an Apple factory in China.

September 10, 2014

More than 1 million comments have been submitted to the US Securities and Exchange Commission calling on the agency to require that corporations disclose political spending to their shareholders.

September 5, 2014

Thanks to corporate inversions, many highly profitable companies are stiffing the United States government of billions of dollars that could be used to fund vital social programs. Tell President Obama to stop corporate deserters.

August 14, 2014

America stands to lose a great deal more from inversion deals from companies President Obama calls “corporate deserters.”

August 13, 2014

Why that’s a win for media diversity.

August 7, 2014

“This is exactly why we need Net Neutrality. We don’t want to live in a world where Comcast or AT&T gets to decide which side of the story you see.”

August 1, 2014

Staples is at the center of a highly controversial “public-private partnership” deal to turn its counters into quasi-post offices. 

July 28, 2014

Walgreens wants to use tax loopholes to take $4 billion out of taxpayers’ pockets. And that’s just the beginning.

July 3, 2014

How the boys from New Jersey are trying to pay for it all—at taxpayer expense.

July 2, 2014

Yet another multibillion-dollar conflict-of-interest tangle involving the New Jersey governor and the former chairman of the Port Authority.

July 1, 2014