Mounting labor costs forces Nike to relocate in China

Want China Times, Staff Reporter 2013-02-27

A worker in a shoe factory in Hangzhou. (Photo/Xinhua)

A Guangdong shoe manufacturer for the leading US brand Nike has cut its work force to 4,000 from 13,000 since the global financial crisis five years ago, China Business News reported on Feb. 26.

The factory has no recruitment plans even in the current hiring season after the Chinese New Year holiday, said the factory manager, surnamed Wu.

Nike paid its workers US$200 a month in the 1990s, when plants came to China from Taiwan, Wu said. Labor costs have rocketed after the financial crisis, now over US$500 a month. The pay well exceeds Indonesian salaries at US$300 and Vietnam's US$250 a month, Wu added.

"We have lost part of our orders as Nike would not pay a cent more if it could strike a deal without that cent," Wu said. "If I felt like taking a risk, I could have kept about 10,000 employees. But this means we would have to pay an extra US$2 million each month to prevent orders from going to Indonesian competitors."

Rising labor costs and intense competition have put sportswear giants, such as Nike and Adidas, in a dilemma about slashing profits or making fewer products.

Another Guangdong manufacturer who has contracts with Nike told China Business News that it plans to raise quotes because minimum wages in China have skyrocketed over recent years. The manufacturer also admitted that it was very likely to receive fewer orders.

A pair of sports shoes manufactured in Guangdong costs US$1 to US$2 more than those made in Indonesia or Vietnam. Nike still leaves a reasonable amount of orders to Guangdong shoemakers because of quality standards, and the domestic market is still promising despite a 6% decrease in orders from China for five months through April 2013, a Nike contract manufacturer said.

Statistics compiled by China Business News showed that in 2001, China made 40% of Nike's sneakers and Vietnam 13%. In 2005, China's contribution declined to 36% while Vietnam's climbed to 26%. In 2009, Vietnam caught up with China, both individually making 36% of all Nike sneakers. In 2010, Vietnam overtook China, making 37% of Nike's sneakers versus 34% by China.

Sourcing raw materials for sneakers and sportswear and their assembly lines are easier to standardize, giving Nike leverage to move its production base to China's hinterland and Southeast Asian countries, said Li Peng, Asia Footwear Association secretary general.

Nike has established five production sites in Jiangxi province, employing tens of thousands of workers.

Graft case prompts Indonesian resignation

Deutsche Welle, 23 February 2013

A probe into a sports center project by Indonesia's Corruption Eradication Commission has prompted the resignation of the chairman of Indonesia's ruling party. Anas Urbaningrum denies receiving kickback payments.

Indonesian President Susilo Bambang Yudhoyono’s 2009 re-election slogan "Mr. Clean" took a knock on Saturday when the head of his ruling Democratic Party (DP) quit after being named as a further suspect in a corruption case.

"I quit as the chairman of the Democratic Party," said Urbaningrum (pictured above) at a press conference in Jakarta while vowing to fight the charges.

His resignation had been widely expected. DP officials recently signed an "integrity pact" to give up their posts if named as graft suspects.

Popularity slump

The ruling DP slumped to just eight percent in surveys in December from 21 percent in 2009, when Yudhoyono was re-elected with a landslide vote. Indonesia's next elections are due in 2014.

State auditors say many irregularities surrounded the Hambalang sports complex, near Jakarta, resulting in $25 million (18.9 million euro) in state losses, due in part to a questionable tendering process.

In December, sports minister Andi Mallarangeng resigned after being named a suspect in the same case. Former party treasurer Muhammad Nazaruddin was jailed last April for nearly five years over a separate sports graft case.

Transparency International's index of the least to the most corrupt nation ranks Indonesia 118th among 176 countries.

ipj/slk (AFP, AP, dpa)

Boost for City as Sir Mervyn King does currency swap deal with Bank of China

Independent, Russell Lynch, 22 February 2013

 

The Bank of England today took a crucial step towards boosting the City as a centre of trading in the Chinese renminbi after agreeing a currency swap deal with the Bank of China.

The announcement of the three-year swap — to allow Threadneedle Street to draw down renminbi from China’s central bank to supply to UK firms and vice versa — came after talks between Governor Sir Mervyn King and his counterpart in Beijing.

Bankers have long called for a swap to allay fears over a lack of liquidity in China’s tightly-controlled currency, which has hampered trading in the renminbi. The Bank of England had resisted as it usually reserves swap lines for emergencies.

A Standard Chartered spokesman said the deal “will have a positive psychological effect on the market in the City and encourage more companies to do business in renminbi.” HSBC UK economist John Zhu said: “This will provide greater confidence for businesses that trade with China and represents a positive step to improving convertibility between sterling and renminbi.”

Hong Kong currently has 80% of off-shore renminbi trading, with London and Singapore sharing the rest.

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"The U in Kundalini"- Oct 18, 2012 (Kryon channeled by Lee Carroll) - (Subjects: Kundalini, Unification, EU, Nobel Peace Prize 2012, Middle East, South America, Only 5 Currencies on Earth, Old Souls, Duality will dismiss, 3D Humanity will melt with Multi dimensional higher self, Global Unity… etc.)

Bumi: Rothschild defeated in battle to oust board

BBC News, 21 February 2013 

Related Stories

• Bumi's bitter boardroom battle
• Bumi board fights Rothschild plan
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Nathaniel Rothschild was hopeful of
 regaining control of Bumi, a company
he helped found

Financier Nathaniel Rothschild has lost his bid to oust the current board of coal mining giant Bumi, the company he helped to found.

Chairman Samin Tan survived a vote to remove him but informed the board he was stepping down.

Mr Rothschild had wanted to rejoin the company and expel 12 of the 14 board members, including the chief executive and chairman.

Shareholders rejected his attempts and voted to remove just two members.

Chief executive Nick von Schirnding also managed to keep his post, with more than 60% of votes cast in his favour at the London meeting.

Mr Tan, who received 57% of votes in favour of hisretention, said he would resign once a new independent chairman was found.

The company said it would look for a new chairman "who has experience in, and is familiar to, the London market", according to a statement.

The two members who were ousted were Jean-Marc Mizrahi and Nalinkant Rathod.

Mr Rothschild set up Bumi with the influential Bakrie family, part of Indonesia's political and business elite, in 2011.

The deal was intended to offer international investors the chance to buy into natural resources assets in emerging markets while ensuring they were protected by UK market rules.

Fraud allegations

But the partnership, and relations with the Bakrie family, soured after Mr Rothschild called for a radical clean-up at the firm.

To make matters worse, he made allegations of potential misuse of development funds and other assets at the firm in September 2012.

Allegations of financial irregularities at Bumi's key Indonesian operating subsidiary, PT Bumi Resources - in which it owns 29% alongside the Bakrie family - first emerged that month, after Mr Rothschild received information from a whistleblower.

However, an investigation by legal firm Macfarlane, commissioned by the management of the London-listed parent company, said the evidence provided to Mr Rothschild comprised emails that had been obtained illegally.

Macfarlane said the claims that money intended to finance development of coal mines had been misappropriated could not be substantiated, in large part due to "the unwillingness of key parties to be interviewed and provide information".

Bumi's management said that it had referred the matter to the relevant authorities, including the Indonesian financial services authority, and the UK Serious Fraud Office.

Mr Rothschild quit the board in October.

Bumi's new chief executive, Mr Schirnding, has negotiated an amicable divorce with the Bakrie family, including the sale of its stake in PT Bumi Resources for $580m (£370m), and the family's divestment of its 24% in the London-listed company.

But the board warned that the deal would be scuppered if Mr Rothschild succeeded in retaking control of the company.

The company's share price has slumped 60% since it listed in 2011.

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Rothschild Says Indonesia's Bumi Can Shake Up Coal World
Maligned at Home, Bakrie Group Is the Face of Indonesia Inc. Around the World

The company formed by the union of Bumi Resources and

Berau Coal Energy is looking to acquire coal mines around

the world and become a global giant, investor Nathaniel

Rothschild, left, said on Friday, Dec 17, 2010.

CNBC Admits We're All Slaves To Rothschild Central Bankers Global Government

Moody's may cut Portugal on growth, debt concerns (Dec 21, 2010)

Moody's slashes Ireland to Baa1, warns more may be ahead (Dec 17, 2010)

Moody's may cut Greek credit rating, puts on review (Dec 16, 2010)

Moody's warns it may downgrade Spain's debt (Dec 15, 2010)
Moody’s Threatens Credit Downgrades for Belgium, U.S. (Dec 14, 2010)

Matthew message (Channelled by Suzanne Ward, Feb 18, 2013)

"... The Rothschild faction of the Illuminati, which governed its empire from London and the Vatican, lost its media foothold along with its other powers in that part of the world. A section of the Illuminati’s Rockefeller faction, headquartered in Washington, DC, and New York City, still has influence on major media in the US as well as on Wall Street; and their lingering foothold in Congress is evident in the intransigence that has stagnated progress. ..."

SBY Orders Lapindo to Fully Compensate Mudflow Victims

Jakarta Globe, Ezra Sihite, February 14, 2013

Victims of the Lapindo mudflow rally in front of the State Palace for World
Human  Rights Day. The protestors demanded that the government prosecute
those responsible for a mud volcano that inundated much of their town. (JG
Photo/Safir Makki)

              

Related articles

• Lt. Gen. Says Lapindo Case Used Fake Data Dec 20, 2012
• Ruling to Limit Lapindo Share Of Payouts Is ‘Final, Binding’ Dec 19, 2012
• Constitutional Court Rejects Review to Transfer Lapindo Mudflow Compensation Dec 14, 2012
• Sidoarjo Mudflow Victims Seek Answers Nov 27, 2012
• Taxpayers Still Footing the Bill For Sidoarjo Mud Oct 24, 2012

President Susilo Bambang Yudhoyono on Thursday strongly criticized Lapindo Brantas, the oil and gas company that some scientists blame for the Sidoarjo mudflow disaster, for not fulfilling its obligation to compensate the victims.

“I got a report that Lapindo still has not completed its responsibility and Rp 800 billion ($83 million) is still not paid,” Yudhoyono said on Thursday.

Yudhoyono expressed his concern after receiving reports that the area inundated by the mudflow was also threatened by the impact of recent heavy rains.

“I have heard reports saying that there are some unfinished matters that disrupted our efforts to contain the Sidoarjo mudflow,” he said.

Yudhoyono urged Lapindo Brantas, a company partly owned by presidential hopeful and Golkar Party chairman Aburizal Bakrie, to honor its pledge.

“Please convey this message to Lapindo: that they should keep their promise. If you play around with people you will carry the sins to the afterlife, tell them that,” he said.

Golkar leadership board chairman Hadjriyanto Thohari said he rejected speculation that Yudhoyono’s criticism was a political shot at his party.

“I don’t think it was an attack against Golkar because structurally there is no connection between Lapindo and the party,” said Hadjriyanto, who is also a deputy speaker of the People’s Consultative Assembly (MPR).

Agung Laksono, the coordinating minister for people’s welfare and a Golkar deputy chairman, also denied that Yudhoyono’s Lapindo critique was politically motivated.

“It was in line with the discussion with the minister of public works, so it was not political at all,” he said.

Agung said Lapindo had paid Rp 3 trillion in compensation to the mudflow victims thus far.

“It’s true that the payment has not been completed, but it doesn’t mean they haven’t paid at all, let’s just wait,” he said.

The Sidoardjo mudflow in East Java — which began in May 2006 after a blowout at one of Lapindo’s natural gas wells — destroyed hundreds of homes, swamped 720 hectares of land and displaced thousands of people.

Lapindo Brantas has long denied it was the cause of the mudflow, instead blaming an earthquake in Yogyakarta, hundreds of kilometers to the west.

The company only agreed to compensate victims within the boundaries of the affected area.

Related Articles:

Bakrie Rep Confirms That Not All Lapindo Mudflow Victims Have Been Compensated

LapindoTold to Shell Out For Mudflow Before Drilling Again

Satellite picture received from Ikonos Satellite Image on May 29, 2008 shows

 the mud volcano and its surrounding area in Sidoarjo, East Java. (AFP/Ikonos

 Satellite Image)

More pictures ....

Indonesia Passes Law to Stop Terrorism Funding

Jakarta Globe, Markus Junianto Sihaloho, February 12, 2013

Armed Indonesian police secure the area in Dompu, West Nusa Tenggara, on
 Saturday after a special anti-terrorism unit raided a militant training camp. Five
 terrorists were killed in the raids on military camps in eastern Indonesia, the latest
 in a series of anti-terror operations, police said. (AFP Photo/Muhammad Yusril
Ramadhan).

               

Related articles

• House Set to Pass Bill to Stop Terror Funds  Feb 11, 2013
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• Rise of the Women Radicals in Indonesia  Feb 8, 2013
• PKS Appoints Sohibul Iman as New House Deputy Speaker  Feb 7, 2013
• Computer Hacker Sentenced to 8 Years for Role in Terror Group  Feb 6, 2013

Indonesia tightened its grip on financial transactions on Tuesday as the nation introduced its first law aimed at choking off funding for radical organizations, marking what supporters called a key step in combatting domestic terrorism.

The House of Representatives passed the bill into law on Tuesday, introducing harsh penalties for individuals and companies convicted of funding terrorist activity. Supporters called the bill a crucial component in the nation’s ongoing battle against terrorism.

“[This law] will strengthen our international cooperation when cracking down on terrorism funding [from overseas],” Justice and Human Rights Minister Amir Syamsuddin said.

Indonesia, which has increased efforts to combat domestic terrorism in recent years, hasn’t suffered a large-scale attack since the 2009 twin bombings of the JW Marriott and Ritz-Carlton Hotels in Jakarta.

But in the past year, the nation has witnessed a surge in terrorist plots aimed at law enforcement as suicide bombers and gunmen attacked police officers in towns in Java, Sulawesi and Papua. Other groups targeted locations in Jakarta and Depok in unsuccessful bomb plots.

Adang Daradjatun, the committee chairman, said the law allows law enforcement to flag the bank accounts and freeze the assets of those suspected of funding terrorism in Indonesia and abroad. The bill, while allowing the government to tighten its grip on money transfers, won’t affect the average citizen, he said.

“The idea is that while this legislation calls for tighter supervision of financial transactions, it won’t inconvenience the general public, but only those who are involved in terrorist activities,” Adang said.

Adang, a former deputy chief of the National Police, said his committee had scrutinized the bill to ensure that it did not infringe on civil or human rights.

“It provides legal protection to citizens, so that in the event that their bank accounts are blocked on suspicion of terrorism-related funding or they are blacklisted as suspected terrorists, both of which require the authorities to obtain court warrants, the individuals in question can go to court to challenge the decisions,” he said.

Among the key provisions in the new law is an article stipulating a maximum prison sentence of 15 years for anyone convicted of funding or attempting to fund terrorist activity, while conspiring with others to fund terrorist activity carries a maximum sentence of life in prison.

Companies convicted of similar offenses face fines of up to Rp 100 billion ($10.4 million) as well as the possibility of having their assets seized by the state, their permits rescinded or even of being dissolved.

The law also requires banks and other financial services providers, as well as the Financial Transaction Reports and Analysis Center (PPATK), the government’s anti-money-laundering watchdog, to be more thorough about analyzing and flagging suspicious transactions.

Foreign governments can also ask Indonesian authorities to freeze the accounts of foreign individuals or companies suspected of involvement in terrorist activities.

The bill was passed into law one day after a House special committee agreed to bring it before Tuesday’s session. Indonesia was one of two G-20 nations without a law preventing the funding of terrorist activities.

Hartati Murdaya Jailed for 32 Months for Bribery

Jakarta Globe, February 04, 2013

Siti Hartati Murdaya has been found guilty of bribery and sentenced to
two years and eight months in prison. (JG Photo)

           

Related articles

• ICW Slams Hartati Murdaya's 'Lenient' 32-Month Prison Term Feb 4, 2013
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• Prosecutors Recommend Five Years Jail for Hartati  Jan 14, 2013
• Prosecutor Demands 12-Year Prison Sentence for Former Buol District Chief Jan 10, 2013
• Jakarta Court Orders Unfreezing of Hartati’s Bank Accounts Dec 6, 2012

The Jakarta Anti-Corruption Court found businesswoman and Democrat Party benefactor Siti Hartati Murdaya Poo guilty of bribery and sentenced her to two years and eight months in prison on Monday.

"The defendant Siti Hartati Murdaya is found guilty of committing corruption," Judge Gusrizal said as he read the verdict on Monday.

Gusrizal said Hartati has been proven guilty of violating Article 5 of the Anti-Corruption Law and Article 55 of the Criminal Code. Hartati was also ordered to pay Rp 150 million.

Hartati was accused of offering Rp 3 billion ($313,000) in kickbacks to Amran Batalipu, the former head of Central Sulawesi’s Buol district.

Hartati initially claimed the money was a donation, but later said she was extorted by Amran.

The panel of judges said Hartati gave orders to her subordinates, Yani Anshori and Gondo Sudjono, to give the Buol district head Rp 3 billion in exchange for land concessions for her oil palm plantation companies, Hardaya Inti Plantation and Cipta Cakra Murdaya.

Another judge, Made Hendra, said that on July 11, 2012, Hartati met with Amran at the lobby of the Grand Hyatt hotel to ask for his help in dealing with protesting employees. Hartati was also said to have asked Amran to give a recommendation to issue a land use deed, for which she agreed to pay Rp 3 billion.

Hartati told the court that she would need some time to consider whether or not she would file an appeal. It was not yet known whether prosecutors would appeal the sentence, which is shorter than the five years in jail and Rp 200 million fine they had recommended.

Prosecutors alleged that Hartati was not forthcoming about her role in the bribery case during the trail. They also criticized her for mobilizing a mob of protestors to rally outside the trial. But judges, during the sentencing, played up Hartati's efforts to develop the local economy in Buol. 

After the sentence was delivered, Hartati asked to be allowed to continue undergoing medical treatment at Medistra hospital for her illness. Last year, she failed to meet a KPK summons after suffering a seizure.

The KPK has also named Amran, Gondo and Hardaya Inti Plantation general manager Yani Anshori as suspects in the case. Prosecutors are seeking a 12-year prison sentence for Amran.

Israel must withdraw all settlers or face ICC, says UN report

UN Human Rights Council says Israel is in violation of Geneva convention and should face international criminal court

guardian.co.uk, Harriet Sherwood in Jerusalem, Thursday 31 January 2013

A Palestinian demonstrator during a weekly protest against the Jewish settlement
of Qadomem, near Nablus, West Bank. Photograph: Alaa Badarneh/EPA

Israel must withdraw all settlers from the West Bank or potentially face a case at the international criminal court (ICC) for serious violations of international law, says a report by a United Nations agency that was immediately dismissed in Jerusalem as "counterproductive and unfortunate".

All settlement activity in occupied territory must cease "without preconditions" and Israel "must immediately initiate a process of withdrawal of all settlers", said the UN Human Rights Council (UNHRC). Israel, it said, was in violation of article 49 of the fourth Geneva convention, which forbids the transfer of civilian populations to occupied territory.

The settlements were "leading to a creeping annexation that prevents the establishment of a contiguous and viable Palestinian state and undermines the right of the Palestinian people to self-determination," it said.

The UNHRC report broadly restated international consensus on the illegality of Israeli settlements. But its conclusions are likely to bolster the Palestinians following their admission last November to the UN as a non-member state, which potentially gives them recourse to the ICC.

"The Rome statute establishes the international criminal court's jurisdiction over the deportation or transfer, directly or indirectly, by the occupying power of parts of its own population into the territory it occupies, or the deportation or transfer of all or parts of the population of the occupied territory within or outside this territory," said the UNHRC report. 

It added: "Ratification of the statute by Palestine may lead to accountability for gross violations of human rights law and serious violations of international humanitarian law and justice for victims."

In a statement, the Israeli foreign ministry said: "Counterproductive measures – such as the report before us – will only hamper efforts to find a sustainable solution to the Israel-Palestinian conflict. The human rights council has sadly distinguished itself by its systematically one-sided and biased approach towards Israel. This latest report is yet another unfortunate reminder of that."

Israel refused to co-operate with UNHRC investigators over the report, barring them from access to the West Bank. Investigators conducted more than 50 interviews in Jordan with Palestinians about the impact of settlements, the confiscation of and damage to land, and violent attacks by settlers.

Earlier this week, Israel became the first country to refuse to participate in a "universal periodic review" of the human rights records of the UN's 193 member states, conducted by the UNHRC.

Palestinian and Israeli human rights group said Israel's boycott of the review set a "dangerous precedent … that could be followed by other states refusing to engage with the UN in order to avoid critical appraisals".

The UNHRC rescheduled the review for later in the year in order to give Israel time to reconsider its stance.

Israel also refused to co-operate with a UN investigation, headed by Richard Goldstone, into the three-week war in 2008-09, and it has refused entry to Israel to Richard Falk, the UN's special rapporteur on human rights in the Palestinian territories, since his appointment in 2008.

According to the UNHRC's report on settlements, Israel has established around 250 settlements in the West Bank and East Jerusalem since 1967, home to more than half a million Israeli citizens.

The settlements impede Palestinian access to water resources and agricultural lands, it said.

Following the Palestinians' upgrade to non-member state status, the Israeli government announced a fresh wave of settlement-building, including the development of a highly sensitive swath of land east of Jerusalem known as E1. Palestinians and most international diplomats say construction on E1 will effectively close off East Jerusalem from the West Bank and impede a territorially contiguous Palestinian state.

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"THE BRIDGE OF SWORDS"– Sep  29, 2012 (Kryon Channelling by Lee Caroll) - (Text version)

“… Let us talk about the swords: When you hear the word sword, the first thing that occurs to you is battle. The Bridge of Swords is a battle and we told you that as well. Swords are metaphoric and they mean many things, so let us describe the things we mean them to say to you.

Number one: They are indeed a weapon in a battle. There is a battle coming. "Kryon, does that mean there's going to be a war?" Potentially, yes. Right now we will tell you that the Middle East cooks itself. You've noticed, haven't you? What do you know about the Middle East, dear one? Let's start examining things for a moment. What energy did you grow up in? What was the energy of the Middle East? In the '40s, what was the energy? With the establishment of the state of Israel, you built a wall of hate, both sides. The wall was so thick that the children of both sides were taught to hate one another as soon as they were able to understand the language. They were told who their enemies were. Now, where were you then?

Some of you weren't here yet. By the time you arrived, in your youth, were you aware of the Middle East? Not particularly. "What's the hatred about?" you might ask. What if I told you it's about a family feud? Two sons of a Jewish master are involved. One founded the Arabs and one remained a Jew. They don't want to hear this, but they are all Jews. (Don't tell them this.)

If you look at the lineage, it's pretty obvious and yet it's a complete and total set-up for either solution or war. The set-up would have this world ending in a conflagration that would have been brought about by this hatred. That's in the prophecy of Nostradamus and your scripture, but it is no longer the prophecy of the planet. Yet the hatred still exists. The hatred is as great today as it was then, but where was all the terrorism 40 years ago? It was isolated.

Those in Israel and Palestine and surrounding areas took the brunt of it, but now it's seemingly everywhere - and you're worried. Why would this be? The answer is that the old energy was happy to have this hatred contained, for it would keep it going and never involve outsiders. Outsiders tend to bring unwanted light to the party. Suddenly, the whole earth is involved and can see the entire scenario before them. The old guard wants war, just like all the eons before them. The ones on the bridge are holding the light and showing the earth how to cross. Even many younger ones in Israel and Palestine and Iran are holding light! It's all around the old guard and they are furious, for they are losing the "battle of hatred." …”