Pages

Monday, January 16, 2012

Nike Paid Out $ 1 Million Overtime To The Workers

Sportswear company, Nike, has finally approved the provision of overtime pay to its workers in Indonesia. The payment of the U.S. $ 1 million or approximately IDR 9 billion overtime will be paid to 4500 workers at PT Nikomas in Serang, Banten.

Nike and Overtime Workers
Representatives of the union stated that the overtime payment for 593,468 working hours have not been paid for 2 years. If Nike continues this to happen, it could create a bad precedent.

"This condition has the potential to cause workers movement in Indonesia," said Chairman of the Indonesia National Workers Union, Bambang Wirahyoso.

Bambang said, the union he led is prepared to fight for the rights of workers everywhere who have to work overtime without getting the extra pay.

The agreement between Nike and the workers at PTNikomas occurred after 11-months negotiations. In its statement, Nike said they are ready to protect the rights of its workers. Nike is ready to continue monitoring and supporting so that the situation becomes conducive.

This U.S. sportswear company also offers training programs to the workers in Nikomas. This offer gets positive response from the union.

Actually, the workers in Nikomas have worked overtime without getting paid during the last 18 years. But the Indonesian law only allows the workers to recover their rights for only the last 2 years.

Source: Detik