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Nike and TCFUA Sign Ethical Clothing Deed

Media Statement

Melbourne, June 25th, 2003: Nike Australia and the Textile Clothing and Footwear Union of Australia (TCFUA), today signed the Sports and Corporate Wear Ethical Clothing Deed, effective immediately.

The objective of the Deed is to help ensure all workers in the clothing industry (including outworkers) are protected and receive their correct entitlements. The Deed will be monitored by the TCFUA. Nike will continue its existing internal and external monitoring systems, in addition to the Deed.

While Nike forbids its contract manufacturing factories to use outworkers anywhere in the world, Nike Australia has agreed to sign the Deed and share its labour compliance expertise in the hope that other companies who manufacture clothing locally will follow its lead, and in so doing, help improve the textile industry in Australia.

The TCFUA, for its part, sees the widespread adoption of the Deed protections throughout the industry as a necessary step in the fight against the exploitation of outworkers. The TCFUA reaffirms that outworkers are employees who are entitled to be properly paid in accordance with award obligations. As such, they are an important and legitimate workforce in the Australian clothing industry.

Tony Balfour, Managing Director, Nike Pacific said, "We believe that by signing the Deed, Nike is making a strong statement about its commitment to protect local workers' rights. We hope other manufacturers in this country will adopt the same principles and standards for the betterment of the clothing industry and Australian workers."

Tony Woolgar, National Secretary, TCFUA said, "The union has worked closely with Nike over the past year in drafting the best possible Deed of Cooperation for Australian workers employed in the manufacture of sporting apparel.

"I have only worked with Nike in relation to its contract manufacturing operations in Australia and to date we have found the company's conduct of its factory operations in Australia to be ethically sound. I believe this Deed will form the cornerstone for future agreements with other companies, as well as help improve the working conditions for those in the industry and bring to account those companies or individuals who fail to provide proper working conditions or entitlements."

Nike has an existing global Code of Conduct and monitoring system in place, aiming to protect the rights and entitlements of the people who make Nike product. Genuine Nike product is made in contract factories subject to Nike's Code of Conduct. The Nike Code prohibits the use of outworkers, encourages a safe and healthy workplace, and the well-being of its contract workforce.

Monitoring takes place on several levels including independent audits conducted under the guidance of the Fair Labor Association (FLA). The independence is what makes the FLA audits and information particularly useful to consumers and other interested stakeholders. The FLA reports publicly on compliance issues uncovered during its audits, the company's remediation efforts, and the company's internal monitoring processes. To review the first audit reports and remediation plans, posted this month, visit www.fla.org.

The Sports and Corporate Wear Ethical Clothing Deed is a legally binding document, and another sign of Nike's ongoing commitment to protecting worker's rights and entitlements.

Nike's continuous goal remains to make responsible sourcing a business reality (through compliance, partnerships and outreach) that helps enhance workers' lives. The company consistently shares its global experience and expertise in the creation and monitoring of its global Code of Conduct with unions, governments, NGOs and even its competitors, in the hope others will follow its lead for the continued improvement of the global textile and footwear manufacturing industry.

Contacts: Kate Meyers Barry Tubner

Nike Corporate Communications Manager TCFUA National President

(03) 9292 9354 or 0419 208 298 (02) 9789 5233 or 0408 166 645