INDONESIA: Nike investigates military intimidation at factory
Sportswear giant Nike is investigating claims that one of its supplier factories in Indonesia is allegedly paying military personnel to intimidate employees into working for less than the minimum wage.
Workers at the footwear factory in the city of Sukabumi say they were made to sign a petition supporting the factory's claim to be exempt from paying higher wages, which were put in place by the government last year, the ABC reported.
According to the report, workers claim that those who tried to reject the pay restriction were summoned by military personnel who interrogated and intimidated them.
Companies that are not profitable and have worker support are able to gain an exemption from the new wage rules, the ABC reported, with exempt factory workers being paid A$3.70 a day instead of $4.
Reportedly, at least six Nike-contracted factories have applied to be exempt from paying the increased rate.
"The Nike Code of Conduct is very clear: Nike expects contract factory workers to be paid at least the minimum wage required by country law and provided legally mandated benefits, including holidays and leaves, and statutory severance when employment ends," a Nike spokesperson told just-style.
"We understand that some factories within the Nike contract supply chain in Indonesia have chosen to engage with their local governments to discuss the new wage levels and their implementation.
"We expect such conversations to take place within the provisions of the legal framework in Indonesia."
An interactive databank with intelligence on the major apparel sourcing countries
Given their rapid evolution over recent years, it is difficult to predict where ERP and PLM will be a few years from now. Increased compatibility, cloud-based systems, social media mining, and on-dema...
The most-read stories on just-style this week include the launch of Nike's new app to help designers focus on sustainability, mounting pressure for Gap and Walmart to join the safety accord, and a loo...
Sportswear giant Nike has called for an inquiry by the Cambodian government into a dispute between police and thousands of garment workers at a factory it sources from....
Sportswear giant Nike has reported a 22% hike in fourth-quarter net profit, driven by higher sales and improved margins....
- US fashion firms share their sourcing strategies
- Cost biggest barrier to Bangladesh RMG remediation
- How apparel retailers should react to Brexit
- Britain votes for Brexit – what happens next?
- Bad sourcing blamed for pressure on retail margins
- Ten key trends in apparel and footwear markets
- Bangladesh firm comes top in World Textile Awards
- Columbia rain jacket a milestone in sustainability
- Primark continues US expansion with third store
- $360m logistics investment to benefit Bangladesh
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Primark Stores Limited: Retailing - Company Profile & SWOT Analysis
- Clothing & Footwear Retailing in Indonesia– Market Summary & Forecasts
- Clothing & Footwear Retailing in China – Market Summary & Forecasts
- Nike Inc in Apparel and Footwear (World)