The Straits Times
Published on Jan 15, 2013

Nike investigates Indonesian suppliers over wage abuse


JAKARTA (AFP) - US sporting goods giant Nike said on Tuesday that it was investigating claims by labour activists that its manufacturers in Indonesia were trying to evade paying its workers the minimum wage.

"Nike takes these claims seriously and company representatives are investigating the claims," global corporate communications director Greg Rossiter told AFP.

Nike's code of conduct is "very clear", he said, adding that the company expected workers producing for Nike to be "paid at least the minimum wage required by country law and provided legally mandated benefits", such as holidays, leave and severance pay.

Following massive protests, Jakarta workers won a 44 per cent minimum wage rise to 2.2 million rupiah (S$279) a month, effective on Jan 1, and other provincial governments are following suit at different rates.