Vietnam Labor Watch

Vietnam Labor Watch

Press Contact: Thuyen Nguyen, thuyen@spacelab.net

Nike contractor, Sam Yang Vietnam Co. apologized to workers
July 6, 1997
Enclosed please find a translation of a handout given to factory workers in June 1997 at a Nike factory, Sam Yang Vietnam Co., located in Ho Chi Minh City, Viet Nam.

To friends and workers of the Sam Yang family:
As you have noticed, recently we have made many changes in the management practices, and today we are issuing a list of improvements and working conditions in the Sam Yang VN Co.

Issue

Training period After April 1^st, Sam Yang VN has eliminated the practice of paying workers the training wage and the company will pay the minimum wage from the first day of employment according to the law.
(VLW Note: no compensation for violation of minimum wage law in 1996 and 1997)

Overtime hours The labor law does not allow workers to work more than 200 hours of overtime per year. You have the right to refuse if you were asked to work overtime after you have worked more than 200 hours of overtime per year. In cases when you are forced to work overtime, you must come meet the General Director of Management. The company has found that 290 workers have worked over the legal maximum limit for overtime. We would like to apologize and compensate them for the violation.
(VLW Note: Sam Yang has only compensated workers for 1997 overtime violation and did not compensated workers for the same overtime violation during 1996.)

Company's directives In cases where workers violate company's directives, the line supervisor must notified the General Director requesting permission to issue for a letter of warning. After the General Director will make the final decision in issuing a the letter of warning. If a violation has occurred, we will meet with the trade union representative to decide the matter according to the working directives of the company.

Health and Safety We have placed notices and direction on health and safety areas inside and outside the company's facilities. We hope that you will read them carefully and understand them before working to protect your own health.

Medical Clinic The Sam Yang Vietnam Co. is planning to have a full time doctor to staff the clinic after May 23^rd.
Each year, you are allowed one medical examination. Two medical examinations for employees working with hazardous chemicals. Each employee will have her own medical file which will have a personal medical history on the employee.

Menstruation rest During menstruation period, female employees are allowed to have 30 minute of rest per day.

Lunch We have tried to improve the quality and the amount of food, but still have not satisfied. We will continue to try harder so that workers will have a good lunch. If the result is still not satisfactory, then we will use a contractor.

Toilet facilities According to the number of workers, the bathroom will be expanded. First on the list are the toilets in the sewing area.
To insure security and safety for you, the company will provide other amenities like liquid soap. Of course, it will not last long if you do not use them accordingly.

Trade union We have sponsored a trade union but still need to promote it. During June 15, we will conduct an open election. We will encourage and insure the establishment of fair labor practices to worker representatives.

Suggestion Box In each factory there is a suggestion box where you can put in complaints, questions and suggestions. We will address requests and questions on all issues that have not been addressed in this letter.

These initiatives represent our effort. They are not less than what we have known and hope that you will understand. They are according to the general understanding of the universal principle of human decency. We will continue classes to train and develop workers to learn Korean, English and management principles.
The Nike shoes produced by Sam Yang Vietnam is one of the best shoes in the world and we all should be proud of them.
Even with all the difficulties we have undergone, we believe that Sam Yang Vietnam Co will succeed and reach a prosperous future for all of us.
Self understanding is the only course we have taken to the winning road in the competitive global market.
Thank you sincerely.

Nike in the News

Issue
Training period	After April 1^st, Sam Yang VN has eliminated the practice of paying workers the training wage and the company will pay the minimum wage from the first day of employment according to the law. (VLW Note: no compensation for violation of minimum wage law in 1996 and 1997)
Overtime hours	The labor law does not allow workers to work more than 200 hours of overtime per year. You have the right to refuse if you were asked to work overtime after you have worked more than 200 hours of overtime per year. In cases when you are forced to work overtime, you must come meet the General Director of Management. The company has found that 290 workers have worked over the legal maximum limit for overtime. We would like to apologize and compensate them for the violation. (VLW Note: Sam Yang has only compensated workers for 1997 overtime violation and did not compensated workers for the same overtime violation during 1996.)
Company's directives	In cases where workers violate company's directives, the line supervisor must notified the General Director requesting permission to issue for a letter of warning. After the General Director will make the final decision in issuing a the letter of warning. If a violation has occurred, we will meet with the trade union representative to decide the matter according to the working directives of the company.
Health and Safety	We have placed notices and direction on health and safety areas inside and outside the company's facilities. We hope that you will read them carefully and understand them before working to protect your own health.
Medical Clinic	The Sam Yang Vietnam Co. is planning to have a full time doctor to staff the clinic after May 23^rd. Each year, you are allowed one medical examination. Two medical examinations for employees working with hazardous chemicals. Each employee will have her own medical file which will have a personal medical history on the employee.
Menstruation rest	During menstruation period, female employees are allowed to have 30 minute of rest per day.
Lunch	We have tried to improve the quality and the amount of food, but still have not satisfied. We will continue to try harder so that workers will have a good lunch. If the result is still not satisfactory, then we will use a contractor.
Toilet facilities	According to the number of workers, the bathroom will be expanded. First on the list are the toilets in the sewing area. To insure security and safety for you, the company will provide other amenities like liquid soap. Of course, it will not last long if you do not use them accordingly.
Trade union	We have sponsored a trade union but still need to promote it. During June 15, we will conduct an open election. We will encourage and insure the establishment of fair labor practices to worker representatives.
Suggestion Box	In each factory there is a suggestion box where you can put in complaints, questions and suggestions. We will address requests and questions on all issues that have not been addressed in this letter.