NIKE WORKERS ALLEGE THEY HAVE BEEN CHEATED OF MILLIONS OF DOLLARS IN WAGES THROUGH FORCED, UNPAID OVERTIME

Team Sweat:
This afternoon I sent the letter below to Nike CEO, Mark Parker. The letter outlines the information I was recently given by the trade union representing Nike’s 18,000 workers at PT Nikomas in Indonesia. If Nike complies with my requests, I hope to have an update to you on this case on March 8th.
Peace, Jim Keady
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February 22, 2011
Mark Parker, CEO
Nike Inc.
One Bowerman Drive
Beaverton, OR 97005
Dear Mr. Parker,
On February 6, 2011 I had the pleasure of meeting with representatives from the Serikat Pekerja Nasional (SPN) in Serang, Indonesia to discuss the current conditions for Nike factory workers producing at PT Nikomas.
During this meeting, I was told that Nike factory workers at PT Nikomas are being forced to work unpaid overtime to meet Nike’s production quotas.
Here are the facts as they were given to me:
- There are approximately 18,000 Nike factory workers at PT Nikomas and they produce more than 2,000,000 pairs of Nike sneakers per month.
- Nike factory workers at PT Nikomas typically work from 7am-3pm. This is followed by three hours of paid overtime.
- Following their regular shift and paid overtime hours, your factory workers are then told by their supervisors to punch out on the time clock.
- Once your workers are off the clock, they are forced by their supervisors to get back on the production line for one hour of unpaid overtime.
- This hour of forced, unpaid overtime happens primarily in the sewing divisions and includes approximately 13,000 Nike factory workers.
- The hourly wage for a fourth hour of overtime would be Rp12.600 ($1.40).
- Nike factory workers are being forced to work this unpaid hour 6 days a week.
- If these allegations are accurate, Nike factory workers at PT Nikomas have been cheated out of approximately $5,460,000.00 this past year - $1.40 (rate) x 6 (days) x 50 (weeks) x 13,000 (workers) = $5,460,000.00.
- The SPN representatives shared that this forced overtime/wage cheating has been happening to Nike factory workers at PT Nikomas for 18 years.
In light of these alleged violations of your workers’ rights, I am requesting that:
1. By March 8, 2011, Nike Inc. will contract the Trade Union Rights Centre (TURC) in Jakarta, Indonesia to conduct an independent investigation into the allegations at PT Nikomas listed above and the results of TURC’s investigation will be made public to the international NGO community, the press, and the trade unions at each Nike factory in Indonesia.
2. By March 8, 2011, Nike Inc. will send an official memo to Muhaimin Iskandar, Indonesia’s Minister of Manpower, alerting him to the fact that you have received this memo and that you will be taking immediate action to ascertain the validity of the aforementioned violations of your Indonesian workers’ rights at PT Nikomas.
3. By March 8, 2011, Nike Inc. will send an official memo to Rakhmat Suryadi, Chairman of SPN-Serang District, alerting him to the fact that you have received this memo and that you will be taking immediate action to ascertain the validity of the aforementioned violations of your Indonesian workers’ rights at PT Nikomas.
4. By March 8, 2011, Nike Inc. will send me confirmation that each of the actions in points 1-3 has been taken, along with copies of the memos sent in English and Indonesian.
Once the findings from the investigation by TURC are complete, we can discuss what appropriate action(s) might follow.
If you would like to discuss this in more detail or if you have any questions, please feel free to email me at jim@educatingforjustice.org or call me at 732-988-7322.
I thank you for your consideration of this matter and I look forward to hearing from you by March 8th.
Peace,
Jim Keady, Director
Educating for Justice, Inc.

