Company News: Nike to offer tour of Asian factories
Mark Hollis has heard the allegations about Nike Inc. operating sweatshops overseas.
The Michigan State University senior associate athletic director believes Nike when it says all its workers are treated well, and he eagerly accepted the company’s offer to tour some of its Asian factories.
“It’s easy to be told one thing, but it’s a great opportunity to go see for yourself,” said Hollis, who left Thursday for Vietnam. “Nike is in business to make money, but they take allegations and perceptions seriously.”
Michigan State, Georgetown, California — a few of the many schools with sponsorship agreements with Nike — and the America East Conference are expected to have representatives joining Nike officials for a tour of facilities in Vietnam and China.
Global Exchange, a humanitarian, not-for-profit organization based in San Francisco, hopes Hollis and the other college administrators ask tough questions during a tour paid for by the world’s largest athletic shoe and clothing company.
After hearing criticism about its labor practices abroad for years, Nike disclosed the names and locations of 700-plus factories that make its shoes, apparel and other products in 2005.
“Theme-park operator Six Flags Inc., which has been struggling with falling attendance and a large debt load, said Thursday it will sell seven of its 30 North American parks, including one in Western Washington, for $312 million.
Shares of Six Flags gained 48 cents, or almost 9 percent, to $5.91 in afternoon trading on the New York Stock Exchange after the news.
The sale comes after a management shakeup at Six Flags in recent years. Mark Shapiro, a former executive at ESPN, became chief executive of the company in December 2005 following a proxy fight led by investor and Washington Redskins owner Daniel Snyder that resulted in the ouster of former CEO Keirian Burke and other executives.
“General Motors Corp., facing stiff competition from Toyota and other foreign rivals, said Thursday it plans to boost yearly capital spending by as much as $1 billion as it attempts to revitalize its product line while drastically cutting costs.
GM Chairman and Chief Executive Rick Wagoner said the world’s largest automaker will increase its global capital spending to between $8.5 billion and $9 billion in 2007 and 2008, up from less than $8 billion in 2005 and 2006.
The increase in capital spending will go toward improvements on wide range of products including powertrains and vehicles made at its Asian operations.