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Reebok cleans house
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October 18, 1999: 4:06 p.m. ET
Athletic shoe maker's report on Indonesia plants points out problems
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NEW YORK (CNNfn) - Reebok International Ltd.'s study of conditions at its Indonesian factories found cases of unsafe or unhealthy conditions and sexual bias, the No.2 U.S. athletic shoemaker said Monday.
The 14-month project, called "Peduli Hak," or, "Caring for Rights," detailed problems at two factories and steps taken to correct them. The two plants employ about 10,000 workers and account for over 75 percent of Reebok's footwear production in Indonesia.
Reebok noted that, like many global companies, its products are made in independently owned and operated factories. The study was conducted by an independent research and consulting firm in Jakarta, Indonesia.
Among other items, the report found workers didn't understand their own wage statements, women workers weren't fairly represented in supervisory positions, and poor ventilation systems led to complaints of headaches and rashes.
Regarding women, the study found that while women made up 84 percent of the workforce at one plant and 81 percent at the other, they comprised only 28 and 33 percent of supervisors, respectively.
The report also featured a survey of a sample of workers and interviews with workers, managers and labor union staff.
"The knowledge we have gained from 'Peduli Hak' will improve conditions for all the footwear factories we use," said Doug Cahn, vice president for Reebok's Human Rights Program. "By sharing the report broadly, we hope it can have a positive impact for the entire athletic footwear manufacturing industry."
Jill Tucker, the company's Jakarta-based manager of the Human Rights Program, said as a result of the reports, "the factories have created safer, more informed workplaces that better protect the rights of workers."
Shares of Reebok (RBK) rose 1/8 to 9-1/16 in late afternoon trading. 
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