Sports equipment maker Nike Inc has agreed to give workers in Indonesia $1 million in unpaid overtime, employee representatives said on Thursday.
A national trade union representing nearly 4,500 employees from the PT Nikomas shoe plant in Banten province said Nike had failed to pay close to 600,000 hours over a two-year period. After 11 months of negotiations, the Seattle-based company reached a $1 million settlement, said Bambang Wirahyoso, the union’s chairman.
Officials at Nike could not immediately be reached for comment.
Wirahyoso said he hopes the case will set a precedent in a country where factory employees often work seven day weeks without overtime or proper benefits.