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Indonesia: Nike supplier to pay $1m unpaid overtime to workers

Date: 13 Jan 2012

PT Nikomas factory in Indonesia - Nike supplier

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.

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