Jan. 11, 2007

EAST LANSING, Mich. (AP) -Mark Hollis has heard the allegations about Nike Inc. operating sweatshops overseas.

The Michigan State senior associate athletic director believes Nike when it says all its workers are treated well, and he eagerly accepted the company's offer to tour some of its Asian factories.

"It's easy to be told one thing, but it's a great opportunity to go see for yourself," said Hollis, who was set to travel Thursday to Vietnam. "Nike is in business to make money, but they take allegations and perceptions seriously."

Michigan State, Georgetown, California - a few of the many schools with sponsorship agreements with Nike - and the America East Conference are expected to have representatives joining Nike officials for a tour of facilities in Vietnam and China.

Global Exchange, a humanitarian, not-for-profit organization based in San Francisco, hopes Hollis and the other college administrators ask tough questions during a tour paid for by the world's largest athletic shoe and clothing company.

"Are the workers paid a living wage that allows them to live in their country's middle class?" said Jason Mark, who is on Global Exchange's board of directors. "Are the workers allowed to collectively bargain for their interests with an independent trade union?"

"Unfortunately, repeated investigations into Nike's operations overseas has given us `No' answers to both of those questions."

Kit Morris, Nike's director of college sports marketing, said it's the fourth such trip in five years.

"We've found that athletic administrators gain a better understanding of the cultural and economic conditions with this firsthand view of our overseas operations," Morris said in a telephone interview from Nike's headquarters in Beaverton, Ore. "Most of our products, including collegiate-licensed apparel, are made by subcontracted workers overseas and that issue has drawn some attention at colleges over the last decade.

After hearing criticism about its labor practices abroad for years, Nike disclosed the names and locations of 700-plus factories that make its shoes, apparel and other products in 2005.

Industry experts said the disclosure, included as part of the company's corporate responsibility report, made the sneaker giant the first major apparel manufacturer to voluntarily disclose its entire supply chain.

Last month, Nike said its earnings were up 8 percent in the second quarter to $325.6 million and that sales increased 10 percent to $3.82 billion for the quarter that ended Nov. 30.

While Global Exchange is frustrated with Nike over core issues related to pay and unions, Mark said the company has made improvements.

"Nike has made some important changes over the last decade in terms of looking out for the health and safety of its workers," he said. "But I hope that the administrators going on the trip ask the hard questions that need to be asked, and that they help make progress for living wages and the right to form unions for the workers overseas."