Worker-management communication

Worker-management communication

In response to the article "Shoe factory workers demand ouster
of divisional heads" dated Monday, Dec. 28, 1998, Nike would like
to clarify the issues raised by The Jakarta Post.

Nike and our manufacturing partners take all worker concerns
very seriously and do our best to resolve all issues as quickly
as possible and to the satisfaction of all concerned.

With regard to meal allowances, PT Doson had already decided
to increase the meal allowance from Rp 1000 per worker per day to
Rp 1,700 per worker per day, starting Nov. 1, 1998. Due to a
miscommunication, the increase did not take place on that date.
On discovering the miscommunication, PT Doson has already ensured
that at the end of this month all workers will be reimbursed in
cash for the value of the November and December additional
allowance.

Having further consulted with the workers, PT Doson Indonesia
senior management are currently reviewing the workers' request to
improve the worker-management communications team. The results of
the review will be acted on as appropriate.

Nike is confident that the Doson management team will continue
to improve its worker-management communications system.

HARSH SAINI

Nike Corporate Responsibility

Asia-Pacific

Jakarta