Footwear industry observers expect companies to take a hard look at the economics of producing a bigger
fraction of athletic shoes in Asian-Pacific and Latin American countries where trainable supplies of lowwage
labor are readily available. Compensation levels for Asian-Pacific and Latin American workers
currently run about 20% of annual compensation levels in Europe-Africa and North America. However,
worker productivity levels at different plants can vary substantially because of the overall experience of the
work force, the use of different incentive compensation plans, the degree of emphasis placed on best
practices training, and the use of up-graded footwear-making equipment. All workers worldwide are paid
1.5 times their regular base wage for working overtime (more than 40 hours per week).