How low can wages go? Not low enough if you’re Nike, which pioneered the practice of outsourcing apparel manufacturing to the poorest countries in the world. The latest strategy, according to a report by ProPublica and The Oregonian, may be to relocate footwear production from higher-wage areas of low-wage countries to lower-wage areas.
Today Nike’s branded apparel is made by an estimated 1 million workers at over 600 factories in as many as 35 low-wage countries, particularly Vietnam, China, and Indonesia.
Nike has been making shoes in Indonesia since 1988. The report shows that from 2015 to 2025, Nike suppliers in Indonesia eliminated 36,000 jobs in the higher wage Jakarta area and added 112,000 jobs in Central and West Java. The Jakarta area has stronger unions and a minimum wage of $300 a month, compared to $165 a month in Central and West Java. Most workers making Nike products that were interviewed for the story made the minimum wage.
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