Minister Datuk Dr S. Subramaniam said a team had been sent to Hytex Apparels in Kepong to check on allegations of serious breach of Nike's code of conduct. He, however said he would only issue a statement tomorrow.

Foreign wire services had reported on Saturday that Nike had put out "red alert" on Hytex Apparels, following an investigation which revealed that the workers were living in sub-standard housing conditions, and that their passports were being withheld and wages not paid in full.

The reports also said Nike would review all of its 34 contract factories in Malaysia over the week, and require them to implement new measures to improve workers' conditions.

Nike also ordered Hytex Apparels to reimburse agent and work permit fees, which were deducted from the workers' salaries, return their passports and move them to Nike's approved housing facilities.
Nike, based in Portland, Oregon, had ordered the workers be moved within a month. It also provided a 24-hour hotline for workers to complain should their passports be held back again by the company.

Meanwhile, a spokesman for Hytex Apparels' parent group, Hytex Integrated Bhd, denied the allegations, adding that the media had blown the issue out of proportion.

He said it was unfortunate that Hytex had been singled out among the 34 Nike contract factories in Malaysia.

"Some contract factories could have failed to look after their workers' welfare, but our factory has always complied with local immigration and labour laws in employing and managing foreign workers.

"The 1,000 foreign workers from various countries, including Vietnam and Myanmar, have had no problems, and many have worked with us for between eight and 10 years."

The spokesman said the foreign investigating team, who did not understand the local working environment, gave a negative report to Nike.

"They must have been shocked to see the workers' hostel with stoves, pots and pans lying about in their living area, and walls plastered with pin-ups of the workers' favourite stars according to the workers' lifestyle back home.

"When the investigators were there, the workers were probably grouped together and engaged in some recreational activity. This gave the impression that they were living in a congested area."

On the matter of withholding the workers' passports, the spokesman said it was the workers themselves who handed over the documents for safekeeping, adding that the company had the workers' consent letters to prove this.

The spokesman also said the factory which had been supplying sports garments for Nike for the past 14 years was audited by Nike every year. Hytex is also a contract factory for many other international labels.

Tenaganita director Dr Irene Fernandez, when contacted, said Malaysian companies should comply with global standards of foreign worker treatment.

"There is a need for the government to come up with a clear labour policy that does not differentiate local and foreign workers.

"The government should directly recruit the workers on a government-to-government basis and do away with recruitment agents.

"This will ensure that basic global standards on hiring of foreign workers are adhered to."