Indonesia: Nike supplier to pay $1m unpaid overtime to workers
Date: 13 Jan 2012
PT Nikomas has reached a settlement to pay workers $1m in unpaid overtime to around 4,500 workers. The company, which makes shoes for Nike at its factory in Banten province, had failed to pay for nearly 600,000 hours of overtime in two years.
The settlement could lead to actions at other companies producing goods for major Western brands. Puma and Adidas are amongst those that also source goods from the area where abuses of working hours and proper payment are thought to be widespread.
Workers claimed that unpaid overtime had been a problem over an extended time period. Indonesian law only allows compensation for a period going back two years.
Nike said it would continue to monitor the situation at its supplier, and was pleased that the company was taking action to address past problems.
You must be logged in to add comments
In a recent article, the BBC's economics editor Robert Peston highlighted the fact that in 2012 the chances are that the economy - punch drunk as it is from the various flavours of debt crisis it has been pummelled with over the course of the year - will be hit by the collapse of a major bank and / or government.
Similar news stories
From the same country
Other stories about this company
Currently most popular stories