Clarification sought over abuse of Nike workers in Indonesia

JAKARTA (JP): The Indonesian Footwear Association (Apresindo) was cautious on Monday in responding to reported labor abuses in Nike's Indonesian partner factories.

Apresindo chairman Anton J. Supit said the association was seeking clarification both from Global Alliance and Nike production companies over reports that nine of the American footwear giant's contract factories in Indonesia had seen verbal and physical abuse of subordinates perpetrated by supervisors.

Anton said that as far as he knew Nike was quite strict on labor standards.

"We want Global Alliance to be more transparent in its survey so as to ascertain whether verbal and physical abuse is rampant in the factories. And the factories should admit their wrongdoing if their workers have been abused," he said at a press conference here on Monday.

He said Apresindo would support any measures taken to uphold the law and that legal proceedings should be taken against any companies found guilty of violating labor law, industrial relations norms and the applicable regulations.

"If the Global Alliance report is true, crimes have been committed and the companies abusing their workers should be brought to justice," he said.

He suggested that workers report any mistreatment they saw or suffered in the workplace.

The management of companies affiliated with Asperindo would not prohibit their workers from protesting poor labor conditions in the nine factories concerned, as long as such protests were conducted peacefully.

He said it was impossible for Nike's Indonesian partner companies to pay their workers in line with the remuneration paid to workers in the United States because the Indonesian companies received only 30 percent of the Nike selling price for their products.

"It's impossible for us to give more to the workers to improve their standard of living because we receive only 30 percent from every pair we produce while the greater part goes to the brand holder," he explained.

He said the 10 factories producing footwear for Nike were paying their workers at least Rp 700,000, far above the monthly minimum wage in Tangerang which was only Rp 426,000. (rms)