Adidas buys Reebok

[Czar Jake]

Originally Posted by Stucki

Because if they paid them according to our standards it would blow the local wage scale and cause rapid inflation.

I admit that 17 cents doesn't sound like much, but compare it to the local wage scale. If it is low by their standards then complain.

The other issues is tha the only reason the factory is located there is because of low labor costs. The single biggest factor in textile production is labor costs. As soon as wages raise significantly, the factory will move to where wages are lower. That is why the southern US is no longer a center of textile production, becuase the workers there have priced themselves out of the market. If I were you, I would be more concerned with where the textiles sold at discount department stores are manufactured.

As the son of a dairy farmer, I can tell you that the increases in the price of milk and cheese don't go to the farmers, either.

I am more concerned with other things like safety factors, than I am with raw wages, because that just isn't a realistic comparison. So, if you are calling it a sweatshop because of unsafe conditions, I am on your side, if it is based only on wages, not necessarily.

Sorry, the geography teacher came out again.

No need to apologize, thanks for the information. I guess the reason that I complain is that people are reporting that the Reebok employees feel they are being treated unfairly and without respect. That may be due to safety conditions, I just noticed their wages in my own limited research and thought it was quite low.

Surely there is something Reebok, a giant corporation, can do to raise the quality of living in these places, considering they have so many employees there?

[Stucki]

Originally Posted by Czar Jake

No need to apologize, thanks for the information. I guess the reason that I complain is that people are reporting that the Reebok employees feel they are being treated unfairly and without respect. That may be due to safety conditions, I just noticed their wages in my own limited research and thought it was quite low.

Surely there is something Reebok, a giant corporation, can do to raise the quality of living in these places, considering they have so many employees there?

You would think that would be the case, but if the local economy doesn't bring in the necessary infrasructure to be able to diversify as wages raise to the point that the factory moves, the people are in worse shape than they were to begin with.

The wages do sound low, but they usually aren't nearly as bad as they sound. Do you know what countries Reebok factories are in? If I can remember the sites I have book marked at school, I may be able to do a purchasing power parity comparison and see how it compares to our minimum wage.

[Czar Jake]

Originally Posted by Stucki

You would think that would be the case, but if the local economy doesn't bring in the necessary infrasructure to be able to diversify as wages raise to the point that the factory moves, the people are in worse shape than they were to begin with.

The wages do sound low, but they usually aren't nearly as bad as they sound. Do you know what countries Reebok factories are in? If I can remember the sites I have book marked at school, I may be able to do a purchasing power parity comparison and see how it compares to our minimum wage.

I can't remember which country they said. I'd be interested to know though.

[Stucki]

I was just on their web page and they have some information about human rights funds and standards which were started in 1992. They claim to be the first in the industry, which probably means there were some abuses which that was a reaction to.

I think that several athletic companies contract out for some of the products which means they would have little or no control of those situations.

After talking to my brother about his time in the Phillipines, 17 cents a day would probably be an improvement where he served. Some of those countries are so screwed up that they have a great deal of work to do just get get much of their population above the subsistence level.

I do think that it is good that people keep shining a spotlight on these corporations, because you know that if noboday was paying attention, there would be a great deal of abuse, not so much by them as with their local contractors who don't have the western tradition of human rights.

[Stucki]

I just had a thought, will the home of Bolton Wanderers now become known as Adidas Stadium? The Adidas just doesn't roll of the tongue the same way that the Reebok does. Although I suppose they could then blare some Run DMC through the loudspeakers.

My adidas

[Remus]

Good thing A.D.I.D.A.S. stands for other things as well (See Korn). I just can't imagine Reebok being used in the same manner.... but we're talking about the shoe maker... right 😁