Nike Agrees to Pay $1-Mln in Overtime to Indonesian Worker

Nike, the U.S.-based shoe and sportswear giant, has agreed to pay $1-million in overtime compensation to about 4,500 Indonesian workers in an out-of-court settlement, following almost a year of negotiations.

Serikat Pekerja National (SPN), the trade union representing workers at the PT Nikomas plant in Serang, Banten province, said that almost 600,000 hours of overtime at the facility went unpaid over the past two years.

The union said it hopes the settlement leads to similar action in other factories across Indonesia.

The decision is being viewed as a symbolic victory, given that the compensation was rather modest and because Nike has long been accused of exploiting and underpaying employees toiling in its Third World factories.