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Mention Nike, the athletic shoe
manufacturer, and many people
will say, “Don’t they use sweat- AP Photo/Ben Margot
shop labor?” This perception is the result Protestors from Global Exchange line the entrance to the “Niketown” store in San Fran-
of a decade-long campaign by activists cisco during its 1997 grand opening. Their aim? To organize or demonize Nike subcon-
who accuse Nike of subcontracting its tractor factories in Indonesia.
work to overseas suppliers who overwork
and underpay their employees and use in the USA Foundation (linked to UNITE, ered at the National Press Club.
child labor. Initiated by then-AFL-CIO the Union of Needletrades, Industrial, and
operative Jeff Ballinger in Indonesia in Textile, Employees), and Ballinger’s own * “Anti-sweatshop” student dem-
1992, the campaign against Nike now in- group, Press for Change. The signs of the onstrations at college campuses
volves such groups as Global Exchange, campaign’s success are dramatic: across the United States, includ-
the Campaign for Labor Rights, the Made ing Georgetown, Duke, North-
* A 1993 feature on CBS’s Street
Stories news magazine in which
In This Issue: Ballinger tours Nike contractors’ January 2002
factories in Indonesia
Jarol Manheim, of George Washing- AFL-CIO Reelects Sweeney
ton University, analyzes the structure, * A White House-sponsored code Loses on “Fast Track”
history, and strategy of the corporate of conduct for the apparel indus- page 7
campaign, the important new tactic in- try
creasingly used by labor unions and Labor Notes
other activist organizations. * A 1998 public mea culpa by page 8
Nike CEO Philip Knight deliv-
western, Michigan, Illinois, and evolved into their present form, and how cally have different objectives. The union
Iowa. they function. wants to unionize the company, increase
wages, or gain some other economic con-
At face value, the attacks against What Are Corporate Campaigns? cession. Environmental organizations and
Nike may seem like a spontaneous and A corporate campaign is a form of human rights advocates want to punish the
unplanned uprising by a cross-section of reputational warfare waged through company for its policies, change its ways,
citizens concerned about overseas work- broadsides, half-truths, innuendo, and a and hold it out as an example of what can
ing conditions for Nike’s contract em- staccato rhythm of castigation, litigation, happen to other companies that do not
ployees. That is how they are intended to legislation, and regulation. It is fought in accept their demands. But both hope to
appear, but they are anything but sponta- the press and on television, on the internet, so damage a company’s reputation that its
neous. This is a corporate campaign—a in the halls of government, in the market- ability to conduct normal business will be
multi-faceted coordinated attack on a place, on the trading floor, and in the threatened and it will yield to their de-
company’s reputation intended to pressure boardroom. mands. Unions and activist groups have
the target company to accede to the cam-
paigners’ goals.
The original goal of the anti-Nike For unions, corporate campaigns are
campaign was to counter U.S. companies’
outsourcing of shoe and apparel manufac- a powerful organizing tool because they
turing to other countries. The campaign
has not achieved that goal, but it has since focus not on prospective union members,
evolved into a broad “anti-sweatshop”
movement, and has been successful at re- but on their employers.
cruiting a new generation into labor ac-
tivism—all the while positioning Nike as
its principal target. Though waged for a variety of rea- learned that by coordinating their efforts
Corporate campaigns are today one sons, corporate campaigns, at their foun- they improve their prospects for success.
of the leading tactics employed by labor dation, attack the essential corporate char- Corporate campaigns are not simple
unions and other activists. It is important acter of their targets and challenge the le- defamation or propaganda operations.
to analyze what they are, how they have gitimacy of the corporation as a social They are coordinated, wide-ranging, and
form. often long-term programs that attack the
The corporate campaign is designed essential relationships on which every
Editor: Ivan G. Osorio to appeal to an underlying distrust of big corporation depends. A successful cam-
business. It is perhaps best understood as paign turns these relationships into vul-
Publisher: Terrence Scanlon a morality play in which the union or some nerable pressure points. It strikes at the
other antagonist defines standards of con- company where it will hurt most—at the
Labor Watch duct that reflect its own interests, chal- same time depriving the company of its
is published by the Capital Research lenges the target company to meet these best lines of defense.
Center, a non-partisan education and standards, and then portrays the company The corporate campaign moves the
research organization, classified by the as a social outlaw when it proves unwill- battle over union organizing and contract
IRS as a 501(c)(3) public charity. ing or unable to do so. disputes off the negotiating table and into
The protagonists in this conflict gen- the streets. What was an orderly, predict-
Address: erally fall into three camps. On one side able and—from the unions’ perspective—
1513 16th Street, N.W. are the targets: companies such as AK less and less effective negotiating process
Washington, DC 20036-1480 Steel, ExxonMobil, Nike, Overnite Trans- becomes a very disorderly and unpredict-
Phone: (202) 483-6900 portation, and Wal-Mart. Two interlocked able challenge that has a greater likelihood
sets of antagonists are arrayed against of success against the corporations that
Email Address: them: labor unions, which seek economic must confront it.
iosorio@capitalresearch.org advantage, and non-labor activist groups Unions and advocacy groups have
Website: and non-governmental organizations waged over 200 corporate campaigns over
www.capitalresearch.org (NGOs)—Greenpeace, the Sierra Club, the past quarter century against all sec-
the Interfaith Center on Corporate Re- tors of industry—mining, manufacturing,
Labor Watch welcomes sponsibility and many others—with a pro- healthcare, retail, and services. Over the
letters to the editor. grammatic or ideological agenda. last decade, the campaigns have grown
Reprints are available for $2.50 prepaid What unites these diverse corporate more frequent and dramatic. What began
to Capital Research Center. antagonists? Unions and activists typi- as a desperation effort by a few belea-
1. Power is not only what you have, but what your 8. Keep the pressure on.
opponent thinks you have.
9. The threat is usually more terrifying than the
2. Never go outside the experience of your people. thing itself.
3. Whenever possible go outside the experience of 10. Maintain a constant pressure upon the oppo-
your enemy. sition.
4. Make the enemy live up to their own book of 11. If you push a negative hard and deep enough
rules. it will break through into its counterside.
5. Ridicule is man’s most potent weapon. 12. The price of a successful attack is a construc-
tive alternative.
6. A good tactic is one that your people enjoy.
13. Pick the target, freeze it, personalize, it, and
7. A tactic that drags on too long becomes a drag. polarize it.
However, at this time, some unions commitment that is not in place in a repre- expanded an infrastructure of educational
like the Amalgamated Clothing and Tex- sentation election. programs, recruitment activities, financ-
tile Workers Union (ACTWU) were be- In 1976, ACTWU launched the first ing, and policy initiatives to support union
ginning to experiment with a new approach full-scale corporate campaign against J.P. corporate campaigns. These include: the
to organizing—the corporate campaign. To Stevens, a large textile producer. The Office of Investment, which helps coor-
unions, the benefits were obvious: Rather union pressed shareholder resolutions, dinate and exploit the investment of union
than organize workers vote-by-vote in attacked the company’s banking relation- pension funds; the Center for Working
workplace elections, campaigns could or- ships, threatened to leverage union pen- Capital, which rates the voting records of
ganize whole companies. And their mes- sion-fund investments, made aggressive investment managers on issues of inter-
sage was simple: Hand over your workers use of NLRB filings, and pressured other est to labor and provides guidelines; the
or see your reputation destroyed. companies linked to J.P. Stevens through George Meany Center in Silver Spring,
Organizing workers is not the imme- one or another corporate director. Maryland, which provides training in
diate goal. Instead, union corporate cam- Activists waged other corporate cam- campaign skills; and even an affinity
paigns often call for “card check” and neu- paigns in the 1980s with mixed success— credit card program that helps fund orga-
trality agreements, which are intended to Eastern Airlines, Hormel, International nizing efforts.
promote workplace organizing. The ob- Paper—and learned how to build coali- Sweeney has also strengthened ties
jective is to pressure management to agree tions and shape messages to undermine with unions in other countries to turn cor-
to union demands regarding the organiz- corporate reputations. Yet this alternative porate campaigns into international af-
ing process. approach to organizing was distrusted by fairs. American unions are at a disadvan-
For unions, a card check agreement most union officials until John Sweeney, tage when multinational companies can
is a lower-risk alternative to a NLRB- a long-time advocate of corporate cam- respond to organizing pressure by mov-
sponsored representation election. Instead paigns, became AFL-CIO president in ing jobs offshore. But an international
of voting by secret ballot, the union 1995. corporate campaign gives unions a way
presses the employer to let the union ask to pressure employers in overseas mar-
its employees to sign union cards to de- The “Mainstreaming” of Corporate kets.
termine whether to accept union represen- Campaigns International corporate campaigns
tation. Neutrality agreements improve the Sweeney has encouraged the also solve a problem of union legitimacy.
odds for union organizing even more. federation’s member unions to use corpo- Even in their weakened condition, Ameri-
These agreements commit the company rate campaigns in their organizing drives. can unions have more resources than
not to oppose the organizing effort, a At the AFL-CIO he has constructed or unions in Europe and elsewhere, but most
New Jersey Teachers Back At Work After Being Jailed for Defying Judge
Public school teachers in Middletown, New Jersey, were back in their classrooms on December 10 after 228 were
jailed for defying a judge’s back-to-work order. Judge Clarkson Fisher, Jr. issued the order after the 1,000-member
Middletown Township Education Association (MTEA) struck on November 29 over health benefits, causing 10,500
students to miss a week of classes. Strikes by public employees are illegal in New Jersey. Middletown teachers’
average salary is $56,300 a year. Judge Fisher and the MTEA reached an agreement sending the teachers back to work
and submitting contract negotiations to a court-appointed mediator.