Nike Factory in Indonesia to Pay Workers $1 Million in Unpaid Overtime
Nearly 4,500 workers working at a Nike contract factory in Indonesia will receive a little more than $1 million in unpaid overtime compensation from the Nike supplier.
The PT Nikomas Gemilang IY shoe factory in Serang owed the workers more than 500,000 hours in overtime from the past two years. According to news reports, the workers have been working with Indonesian labor organization Serikat Pekerja Nasional and U.S.-based nonprofit Educating for Justice to obtain their unpaid wages from the factory.
PT Nikomas Gemilang IY will be implementing training programs for the local management team, including “cultural sensitivity, respectful supervisory skills, team leadership and human-resource management,” as well as developing a task force to rectify grievances and third-party reviews to “review plans, conduct employee-satisfaction surveys and report on results,” according to Nike.
The Beaverton, Ore.–based sportswear company said in a statement that it “commends the factory on their action plan and efforts to correct inadequacies in current policies designed to protect the rights of workers” and that it will “continue to monitor and support their efforts to remediate the situation.”—Deidre Crawford
