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Nike landed with $1m overtime bill

Sports equipment maker Nike Inc has agreed to give workers in Indonesia $1 million in unpaid overtime, employee representatives said on Thursday.

world Updated: Jan 13, 2012 01:59 IST

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.

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