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Article

12 Jan 2012

Author:
Kate Hodal, Guardian [UK]

Nike factory to pay $1m to Indonesian workers for overtime

A Nike factory has agreed to pay $1m in unpaid overtime to Indonesian workers in a move that could force other suppliers of multinational companies to follow suit. Nearly 4,500 employees at one of the sportswear group's suppliers, the PT Nikomas shoe plant in Banten province, will be compensated for close to 600,000 hours of overtime…The out-of-court settlement…set a precedent for other workers, said Bambang Wirahyoso, national chairman of the trade union Serikat Pekerja National…The union claims it is standard practice for Indonesian factory employees to work seven days a week without overtime or proper benefits…Nike said it "…Nike will continue to monitor and support their efforts to remediate the situation. "The multinational group said it would create a task force to address future grievances and offer training programmes to employees.