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Pay Increases For 7,000 Employees Globally Announced By Nike


07/24/2018


Pay Increases For 7,000 Employees Globally Announced By Nike
Wages for 10 per cent of the global workforce or about 7000 employees of Nike would be raised by the company.
 
An internal memo by the company made this announcement.
 
The company wants to "support a culture in which employees feel included and empowered", said company spokeswoman Sandra Carreon-John.
 
She said hat this wage raise is aimed to make the compensation in eth company competitive. The entire company would be covered by the adjustments.
 
While every year, a review of the pay packages is conducted by the company, this year there was a “deeper analysis" of the wages was conducted by the company, Carreon-John said.
 
This measure taken by the global sportswear company is one of a number of changes inducted in it this year. Earlier in the year on April, there had been resignations of several executives of the company following multiple complaints of sexual harassment and gender discrimination, the New York Times had reported earlier.
 
The decision to increase pay for employees was a good one for the company, said Elizabeth Tippett, an associate professor at the University of Oregon School of Law. She has earlier written extensively on employment law and discrimination and has also written on Nike following the Times report this year.
 
"Sometimes companies are afraid to make a change. Nike was not afraid, and I think that's really commendable," she said.
 
The bonus structure of the company has also been altered by Nike. Earlie, a combination of company, team and individual performances used to form the basis for computation of bonus. Now, only company wise performance would be yardstick for ascertaining bonuses.
 
And those employees of the company who are eligible too own stocks of the company will now be presented with a choice about their preferred way of receiving the annual stock awards – either as stock options or restricted stock uses, or a combination of both.

 Earlier in March this year, Nike was rocked by a series of resignations on multiple complaints related to work environment – including gender discrimination and sexual harassment.
 
The executives included Nike Brand President Trevor Edwards and VP Jayme Martin.
 
Following the resignations, an e-mail was circulated among the employees across the company by Nike explaining workplace conditions and the way to "evolve" company culture.
 
Nike had said in a statement at that time that "there has been conduct inconsistent with Nike's core values and against our code of conduct."
 
At the time of the scandal, a Nike spokeswoman had said "there have been no direct allegations of misconduct against," Edwards. 
 
(Source:www.money.cnn.com)


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