The agreement also requires that workers have full rights to freedom of association and collective bargaining, as mandated by International Labour Organization conventions. The contract factory also must comply with Nike's labor compliance standards and with all requirements of the 1997 Atlanta Agreement and any successor agreements that establish labor and compliance standards in Pakistan's soccer ball industry.
Nike expects to place its first order with Silver Star this summer, with production to begin in the fall. Initial and ongoing production with Silver Star will be contingent upon the factory's ability to comply with Nike's product and compliance standards and follow-through on its commitments to support workers' rights.
The decision to work with Silver Star comes about six months after Beaverton-area-based Nike (NYSE: NKE) announced in November 2006 that it would cease placing orders with its primary hand-stitched soccer ball contract manufacturer. That decision was due to the factory's inaction on correcting significant labor compliance violations. Among the violations was widespread, unauthorized outsourcing of Nike production inside homes in the surrounding area.
