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According to a Reuters news report from Los Angeles, Nike Inc, the world's largest athletic shoe and apparel maker, has stopped placing orders with its Pakistan-based supplier of hand-stitched soccer balls. As for the cause of its action, it is stated to have pointed out that Saga Sports of Pakistan had failed to rectify labour compliance violations.
Moreover, the news report under reference also has it that the severed relationship synchronises with Nike's marked thrust on carving out larger market share in the lucrative soccer market, which had remained dominated by its arch rival, Adidas AG, German sporting goods maker. The American firm's action against its Pakistani suppliers would be understandable, if viewed in the perspective of its goal to dominate the global soccer industry by 2010.
But it also needs to be noted that seemingly disenchanted with its Pakistani suppliers, Nike said in a statement that rather than continuing with them, it would limit its supply of hand-stitched soccer balls as it was developing new sources with factories committed to upholding its standards and treating workers fairly. Reference, in this regard, was also made to its efforts, in the meantime, to overcome any shortfalls in supplies as factories in China and Thailand would continue to make the balls it required.
However, lest it be misconstrued as an attempt at discrediting the alienated suppliers or the Pakistani soccer ball industry as such, Nike has clarified that soccer teams and leagues sponsored by it would not be affected by its decision. It also said that it was continuing to source clothing in Pakistan, while trying to find other Pakistani factories to supply the balls it needed. For the action taken against the Pakistani soccer ball suppliers has been attributed to their failure to correct labour compliance violations.
Viewed in the light of the vital role played not only by certain developed countries importing the item but also by the concerned firms in retrieval of Sialkot's legendary soccer industry from the depths it had fallen into some years back; due to non-compliance with international labour and hygienic standards, it should leave little to doubt the cause of setback now facing it. Violations of these rigid requirements had led to the loss of a huge market internationally, thereby putting the national economy in jeopardy. Besides violations of health and hygiene standards, the use of child labour had also figured prominently in the situation thus resulting.
Thanks to the efforts of interested businesses abroad, it became possible for the Sialkot soccer ball industry to find its way back to the rails. However, peculiar to us as it is as a people to slacken guard against unethical practices, we often invite more troubles, though tending to place the blame on others. Of course, this will be seen as being largely owed to lack of serious efforts by the government as well as the business community towards creating awareness of the need for compliance. The urgency of sticking to the strict demands from the importing companies brooks no delay, as otherwise we may have to suffer huge losses in our export sector.

Copyright Business Recorder, 2006

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