Globalization, Athletic Footwear Commodity Chains and Employment Relations in China

Abstract

Globalization has hastened the growth of buyer-driven commodity chains that connect advanced country marketing or retail companies with contractors manufaturing in low-cost, developing countries. Allegations of labour exploitation have been levelled at the global firms for turning a blind eye to their contractors' labour practices. In response, some firms have implemented codes of practice. This paper focuses on the operation of these codes in two leading athletic shoe buyer-driven chains and their contractor plants in Southern China. The codes are administered differently by the two firms, encouraging a less authoritarian, more human-resource-oriented approach at the two plants associated with the larger and more successful global firm. Nevertheless, employment conditions at all four plants meet the requirements of the corporate codes of practice. The one major exception relates to worker representation and collective bargaining. While the current international context is conducive to upholding labour standards and improving employment relations, Chinese national and local institutional contexts limit this tendency. Consequently, workers remain in a vulnerable position. The paper concludes by arguing that although present structural tendencies favour increases in worker stability and power, institutional supports are needed to continuously improve employment relations and labour standards.