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Original Articles

Production beyond the Horizon of Consumption: Spatial Fixes and Anti-sweatshop Struggles in the Global Athletic Footwear Industry

Pages 73-95 | Published online: 17 Jan 2011
 

Abstract

Transnational outsourcing makes it possible for Western companies to access the enormous labour reserves in countries such as China, India or Bangladesh without entering into formal (contractual) relations with these workers. It provides global buyers with an opportunity to disassociate themselves from (labour-intensive) production activities, and thereby from struggles over wages, environment, conditions of work and reproduction. In this context, workers are increasingly treated as a subcontracted component rather than a fixture as part of employer organisations. Drawing upon concepts derived from human and labour geography, this paper takes one labour-intensive sector—athletic footwear—as a case study of how the transnationalisation of production has resulted in a sweatshop model, while simultaneously transforming the athletic footwear industry into a site of social struggle. This paper looks at how global buyers have used relocation as a spatial fix for crises of profitability and labour control, but also pays attention to countervailing tendencies such as the emergence of a global anti-sweatshop movement, and the influence of codes of conduct on working conditions, which adds an extra-local dimension to labour relations.

Notes

*An earlier version of this paper was presented at the “Changing Cultures of Competitiveness” ESRC Research Seminar Series, 2007–2009, 17 April 2009, at the Institute for Advanced Studies, Lancaster University. The author thanks Khalid Nadvi, Kees van der Pijl, Liz Parker and Marcus Taylor for helpful comments.

1. Richard Appelbaum and Nelson Lichtenstein, “A New World of Retail Supremacy: Supply Chains and Workers’ Chains in the Age of Wal-Mart”, International Labor and Working Class History, Vol. 70, No. 3 (2006), pp. 107–108.

2. Ibid., p. 106.

3. See, for example, Linda Weiss, The Myth of the Powerless State: Governing the Economy in a Global Era (Cambridge: Polity Press, 1998); Paul Hirst and Grahame Thompson, “Globalisation in Question: The International Economy and the Possibility of Governance (Cambridge: Polity Press, 1996).

4. William I. Robinson, A Theory of Global Capitalism: Production, Class, and State in a Transnational World (Baltimore, MD: Johns Hopkins University Press, 2004), p. 28.

5. Ibid.

6. See, for example, G. Gereffi and M. Korzeniewicz (eds.), Commodity Chains and Global Capitalism (Westport, CT: Praeger, 1994); Gary Gereffi, John Humphrey and Timothy Sturgeon, “The Governance of Global Value Chains”, Review of International Political Economy, Vol. 12, No. 2 (2004), pp. 78–104.

7. Jane Collins, Threads: Gender, Labor, and Power in the Global Apparel Industry (Chicago and London: University of Chicago Press, 2003), p. 20.

8. Massimo De Angelis, The Beginning of History: Value Struggles and Global Capital (London: Pluto Press, 2007), p. 119.

9. Ibid., p. 117.

10. Interview with Jamie Gough, available: <http://www.praksis.org/files/Gough-Interview.pdf> (accessed 10 April 2010).

11. Robinson, op. cit., p. 19 (emphasis added).

12. De Angelis, op. cit., p. 119.

13. On the notion of social distance see Richard P. McIntyre, Are Worker Rights Human Rights? (Ann Arbor, MI: University of Michigan Press, 2008), ch. 3. On the notion of “core” and “peripheral” workers see, for example, Bennett Harrison, Lean & Mean: Why Large Companies Will Continue to Dominate the Global Economy (New York and London: Guilford, 1994).

14. R. Braun and J. Gearhart, “Who Should Code your Conduct: Labor Union and NGO Differences in the Fight for Workers’ Rights”, in Deborah Eade and Alan Leather (eds), Development NGOs and Labor Unions (Bloomfield, CT: Kumarian Press, 2005), pp. 216–217.

15. See, for example, Michael Burawoy The Politics of Production: Factory Regimes under Capitalism and Socialism (London: Verso, 1985); Paul Thompson, The Nature of Work: An Introduction to Debates on the Labour Process (Basingstoke: Macmillan, 1989).

16. The valorisation process refers to the process of surplus value creation, i.e. the processes through which management seeks to ensure that the value generated by workers exceeds the value of the wages paid to them.

17. See, for example, Karl Marx, Capital, Vol. 1 (London: Penguin, 1976); Alain Lipietz, Mirages and Miracles: The Crisis of Global Fordism (Thetford: Thetford Press, 1987); Jamie Gough, Work, Locality and the Rhythms of Capital: The Labour Process Reconsidered (London and New York: Continuum, 2003), pp. 49–54.

18. Pun Ngai and Chris Smith, “Putting Transnational Labour Process in its Place: The Dormitory Labour Regime in Post-socialist China”, Work, Employment, Society, Vol. 21, No. 1 (2007), p. 27.

19. Stephen Gill and David Law, “Global Hegemony and the Structural Power of Capital”, International Studies Quarterly, Vol. 33, No. 4 (2008), p. 481.

20. Noel Castree, Neil Coe, Kevin Ward and Mike Samers, Spaces of Work: Global Capitalism and Geographies of Labour (London: Sage, 2004), p. 159.

21. Andy Cumbers, Corinne Nativel and Paul Routledge, “Labour Agency and Union Positionalities in Global Production Network”, Journal of Economic Geography, Vol. 8, No. 3 (2008), pp. 369–387.

22. Collins, op. cit., p. 151.

23. See, for example, Jeroen Merk, “Jumping Scale and Bridging Space in the Era of Corporate Social Responsibility: Cross-border Labour Struggles in the Global Garment Industry”, Third World Quarterly, Vol. 30, No. 3 (2009), pp. 599–615.

24. Micheal Donaghu and Richard Barff, “Nike Just Did It: International Subcontracting and Flexibility in Athletic Footwear Production”, Regional Studies, Vol. 24, No. 6 (1990), p. 538.

25. According to Michel Perraudin, Executive Vice-President Adidas-Salomon, cited in Third World Sports Forum (2001), available: <http://www.wsforum.org/2002/Report/proceedings_wsf2001.pdf> (accessed 12 June 2006).

26. Morgan Stanley, “Athletic Footwear and Apparel: Everything you Always Wanted to Know about Sports”, Hong Kong (7 September 2001), pp. 23–24.

27. Lu Lin Cheng, “Embedded Competitiveness: Taiwan's Shifting Role in International Footwear Sourcing Networks”, PhD thesis, Duke University (1996), pp. 113–116.

28. Robert Goldman and Stephen Papson, Nike Culture: The Sign of the Swoosh (London: Sage, 1998), p. 6.

29. Stella Lowder, “Globalisation of the Footwear Industry: A Simple Case of Labour?”, Tijdschrift voor Economische en Sociale Geografie, Vol. 90, No. 1 (1999), pp. 47–60.

30. Ferenc Schmél, “Relation between Footwear Production, Costs and Technology”, Paper written for United Nations Industrial Development Organisation (9 October 2002), available: <http://www.bimeo.hu/bor-cipo/2002/021014.htm> (accessed 10 February 2009).

32. Schmél, op. cit., p. 12.

31. CAD (computer-aided design), CAM (computer-aided manufacturer), CIM (computer-integrated manufacturing).

33. Lowder, op. cit., p. 51.

34. David Harvey, The Limits to Capital (London: Verso, 1999), p. 185.

35. Gough, op. cit., p. 54.

36. ILO (International Labour Organisation), “Labour Practices in the Footwear, Leather, Textiles and Clothing Industries”, Report for discussion at the Tripartite Meeting on Labour Practices in the Footwear, Leather, Textiles and Clothing Industries, Geneva, 16–20 October 2000 (Geneva: International Labour Office, 2000)

37. Ibid.

38. For a longer discussion see Lowder, op. cit.

39. Puma, Annual Report 2000 (Herzogenaurach: Puma, 2000), p. 23.

40. Ray Hudson, Economic Geographies (London: Sage, 2005), p. 118.

41. David Harvey, The New Imperialism (Oxford: Oxford University Press, 2003), p. 115.

42. Ibid., pp. 115–116.

43. Ibid., p. 109.

44. Gough, op. cit., p. 175.

45. Beverly Silver, Forces of Labor: Workers’ Movements and Globalization since 1870 (Cambridge: Cambridge University Press, 2003), p. 41.

46. Countries such as the Philippines, Hong Kong, Mexico, Malaysia, Thailand or India also produce (or produced) athletic footwear but on a much smaller scale. India is often mentioned as the most serious candidate to become a major site in the near future.

47. Phil Knight, cited in Walter LaFeber, Michael Jordan and the New Global Capitalism (New York: W.W. Norton, 1999), p. 104.

48. Donaghu and Barff, op. cit., p. 541.

49. Suk Jun Lim, “The Political Economy of Orderly Marketing Agreements (1977–81)”, South Korea Journal of Populations and Development, Vol. 26, No. 2 (1997), p. 90.

50. Jun Duk Lim, “Restructuring of the Footwear Industry and the Industrial Adjustment of the Pusan Economy”, Environment and Planning A, Vol. 25, No. 4 (1994), p. 571.

51. For a discussion see Ho Keun Song, “Labour Unions in the Republic of Korea: Challenge and Choice”, Department of Sociology, Seoul National University (5 January 2000), available: <http://www.hartford-hwp.com/archives/55a/311.html> (accessed 24 February 2010).

52. Ibid.

53. Cynthia Enloe, “The Globetrotting Sneaker”, in Tom Vanderbilt (ed.), The Sneaker Book: Anatomy of an Industry and an Icon (New York: New Press, 1998), p. 105.

54. Jun Duk Lim, op. cit., p. 571.

55. Cited in James Austin and Francis Aguilar, “Nike in China”, Harvard Business School Publishing, Case 386-065 (1988), p. 15.

56. Wall Street Journal (1 September 1987).

57. Cited in Philip Rosenzweig, “International Sourcing in Athletic Footwear: Nike and Reebok”, Harvard Business School Publishing, Case 9-394-189 (1994), p. 9.

58. Ibid.

59. Jun Duk Lim, op. cit., p. 576.

60. Suk Jun Lim, “Industrial Order in the Footwear Industries of Korea and Taiwan”, Unpublished paper presented at the Workshop on East Asia: Politics, Economy, and Society, January 1995, pp. 195–196 (emphasis added).

61. For discussion, see Yi-Chi Chen and Monina Wong, “New Bondage and Old Resistance: Realities and Challenges of the Labour Movement in Taiwan” (Hong Kong: Hong Kong Christian Industrial Committee, 2002).

64. Far Eastern Economic Review, “Pain in Pusan” (5 November 1992).

62. Jin-Yuh Hsu and Lu-Lin Cheng, “Revisiting Economic Development in Post-war Taiwan: The Dynamic Process of Geographical Industrialization”, Regional Studies, Vol. 36, No. 8 (2002), pp. 897–908.

63. Footwear Business International, “China—Simply the Biggest Thing in Footwear” (Kettering: SATRA, May 2000).

65. Ibid.

66. Ren-Jye Liu and Man-Li Lin, “Taiwanese-owned Footwear Factories in China: Organizational Capability and Brand Partnership”, China Information, Vol. 23, No. 1 (2009), pp. 71–102.

67. Cited in P. Parrish, “Putting the Boot into Coasts”, Data Center Search Service (1 February 1997).

68. Lowder, op. cit., p. 50.

69. Footwear Business International, “Indonesia Footwear” (Kettering: SATRA, July/August 1999).

70. Goldman and Papson, op. cit., p. 7.

71. Phil Knight cited in Donald Katz, Just Do It. The Nike Spirit in the Corporate World (Holbrook: Adams Media Corporation, 1994), pp. 186–187.

72. Sources: SATRA, World Footwear Markets (Kettering: SATRA Technology Centre, 2000); SATRA, World Footwear Markets (Kettering: SATRA Technology Centre, 2004); Vietnam Footwear and Leather Association (2005), Footwear Export, available: <http://www.vietnam-ustrade.org/Eng/footwear_&_leather.htm> (accessed 15 July 2006).

73. See, for example, Ivanka Mamic, Business and Code of Conduct Implementation: How Firms use Management Systems for Social Performance (New York and Geneva: International Labour Organization, 2004); Stephen Frenkel and Duncan Scott, “Compliance, Collaboration and Codes of Labor Practice: The Adidas Connection”, California Management Review, Vol. 45, No. 1 (2002), pp. 1–21.

74. Jeroen Merk, “Restructuring and Conflict in the Global Athletic Footwear Industry: Nike, Yue Yuen and Labour Codes of Conduct”, in M. Taylor (ed.), Global Economy Contested: Finance, Production and the International Division of Labour (London: Routledge, 2008), pp. 79–97.

75. Katz, op cit., p. 172.

77. Rachel Silvey, “Spaces of Protest: Gendered Migration, Social Networks, and Labor Activism in West Java, Indonesia”, Political Geography, Vol. 22, No. 2 (2003), p. 136.

76. Michele Ford, “Economic Unionism and Labour's Poor Performance in Indonesia's 1999 and 2004 Elections”, Proceedings of the 19th AIRAANZ Conference, 2005, Sydney, 9–11 February, p. 200.

78. See, for example, Anita Chan, “Boot Camp at the Shoe Factory: Where Taiwanese Bosses Drill Chinese Workers to Make Sneakers for American Joggers”, The Washington Post (3 November 1996); ICCR (Interfaith Center for Corporate Responsibility), Footwear Manufacturing Fact-finding Report—Nike and Reebok Plants in Indonesia, Vietnam, China (New York: ICCR, 1998); Duncan Green, Just How Clean Are Your Shoes? Report on the Global Shoe Trade (London: Christian Aid, 1997).

79. Ian Stewart, “Workers Speak up in Vietnam”, Associated Press (22 June 1997).

80. Clean Clothes Campaign, “Using Codes of Conduct: Some Background for the CCC Strategy Debate”, Clean Clothes Newsletter, No. 13 (2000), p. 21.

81. César A. Rodriguez-Garavito, “Global Governance and Labor Rights: Codes of Conduct and Anti-sweatshop Struggles in Global Apparel Factories in Mexico and Guatemala”, Politics and Society, Vol. 33, No. (2005), p. 204 (emphasis added).

82. Graham Knight and Josh Greenberg, “Promotionalism and Subpolitics: Nike and its Labor Critics”, Management Communication Quarterly, Vol. 15, No. 4 (2002), p. 558.

83. New York Times, “Nike Pledges to End Child Labor and Apply U.S. Rules Abroad” (13 May 1998).

84. Greider cited in Jeffrey Ballinger, “Taking on the Global Market Machine: Time to Gear for a Revolution in Worker Rights”, Paper presented at the “Conflict and Congruence: Human Rights and Development in Theory and Practice” CORD Symposium, Denver, 17 May 2001, p. 6.

85. Cf. Zygmunt Bauman, Globalization: The Human Consequences (Cambridge: Polity Press, 1998), p. 9.

86. See, for example, Stephanie Barrientos and Sally Smith, “Do Workers Benefit from Ethical Trade? Assessing Codes of Labour Practice in Global Production Systems”, Third World Quarterly, Vol. 28, No. 4 (2007), pp. 713–729; Clean Clothes Campaign, Looking for a Quick Fix: How Weak Social Auditing is Keeping Workers in Sweatshop (Amsterdam: Clean Clothes Campaign, 2005).

87. For a discussion on how the formal endorsement of ethical standards contradicts the way production processes are organised see Marcus Taylor, “Race You to the Bottom … and Back Again? The Uneven Development of Labour Codes of Conduct”, Unpublished paper (2010), draft on file.

88. Paul Fireman, former CEO of Reebok, cited in Katz, op. cit., p. 175.

89. Nike, Innovate for a Better World. Nike FY05-06 Corporate Responsibility Report (Beaverton: Nike, 2007), available: <www.nikeresponsibility.com/#crreport/main> (accessed 11 May 2009), p. 22.

90. Ibid.

91. Ibid., p. 18.

92. Ibid., p. 24.

93. Ibid., p. 26.

94. Adidas, Adidas-Salomon Investor Day, Presentation by G. Bennett, London, 25 September 2002 (emphasis added).

95. Ibid., p. 29.

96. Adidas-Salomon, “Adidas-Salomon's Position on the Multi Fibre Arrangement”, Adidas, Herzengenaurach (2005), available: http://www.adidas-group.com/en/sustainability/archive/2005/MFA_statement.asp (accessed 14 December 2009).

97. Ibid.

98. Fair Labor Association, Beyond Questions of Principle: Exploring the Implementation of Living Wages in Today's Global Economy, Forum organised by the Fair Labor Association in cooperation with the Schell Center for Human Rights, Yale Law School; the Center for the Study of Human Rights, Columbia University; and SIPA Human Rights Concentration, 20 October 2003.

99. For a popular view on lean manufacturing see, for example, James Womack, Jones Daniel and Roos Daniel, The Machine that Changed the World: The Story of Lean Production (New York: Macmillan, 1990).

100. These claims are highly contested and critics dismiss them as managerial rhetoric. They point out that lean often just reflects another way of imposing labour control and worker flexibility under the guise of employee empowerment and involvement. See, for example, Kim Moody, Worker in a Lean World: Unions in the International Economy (London: Verso, 1997).

101. For discussion see Garrett Brown and Dara O'Rourke, “Lean Manufacturing Comes to China”, International Journal on Occupation and Environmental Health, Vol. 13, No. 3 (2007), pp. 249–257.

102. For a cautiously positive assessment of how lean manufacturing improved efficiency and quality, avoided excessive overtime and resulted in higher wages at a Mexican garment supplier to Nike, see Richard Locke, Thomas Kochan, Monica Romis and Fei Qin, “Beyond Corporate Codes of Conduct: Work Organization and Labour Standards at Nike's Suppliers”, International Labour Review, Vol. 146, No. 1–2 (2007), pp. 21–40.

103. Brown and O'Rourke, op. cit., p. 251.

104. Ibid., p. 252.

105. Gough, op cit., p. 50.

106. Ngai-Ling Sum, “From ‘New Constitutionalism’ to New Ethicalism: Global Business Governance and the Discourses and Practices of Corporate Social Responsibility”, Paper prepared for the European Consortium for Political Research Joint Sessions, Workshop 24: Transnational Private Governance in the Global Political Economy, Granada, Spain, 14–19 April 2005.

107. Tim Connor, “Rewriting the Rules: The Anti-sweatshop Movement; Nike, Reebok and Adidas's Participation in Voluntary Labour Regulation; and Workers’ Rights to Form Trade Unions and Bargain Collectively”, PhD thesis, University of Newcastle (2007), p. 215.

108. See, for example, Micheal Fichter and Jörg Sydow, “Using Networks Towards Global Labor Standards?—Organizing Social Responsibility in Global Production Chains”, Industrielle Beziehungen, Vol. 9, No. 4 (2002); Stephen Frenkel, “Globalization, Athletic Footwear Commodity Chains and Employment Relations in China”, Organization Studies, Vol. 22, No. 4 (2001), pp. 531–562; Alex Hughes, “Corporate Strategy and the Management of Ethical Trade: The Case of the UK Food and Clothing Retailers”, Environment and Planning A, Vol. 37 (2005).

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