Indonesian Nike Workers Win USD1 Million Settlement

JAKARTA, KOMPAS.com — Nike will pay workers in Indonesia $1 million for unpaid overtime.

A trade union representing 4,500 employees from a plant that sews sneakers accused the sportswear giant of failing to pay nearly 600,000 hours in the last two years. After lengthy negotiations, the Seattle-based company agreed to a settlement.

Bambang Wirahyoso, chairman of the national trade union, says the $1 million will be paid in full by early February.He hopes the case will set a precedent in a country where factory workers often work seven day weeks without overtime or proper benefits.

Officials at Nike — which came under heavy criticism a decade ago for its use of foreign sweatshops and child labor — could not immediately be reached for comment.