The low wage controversy in nike shoe factory in indonesia
Nike says she and others were fired after they went on strike over wages and damaged the factory so extensively that three days of production were lost the factory then was owned by south koreans now it is in local hands and the case is before indonesia's supreme court. Wages of labour discrimination: case study on nike company indonesia saifulbakri yusoof, faiezi zuber, hazrin mnsr, nadhir zamziba, was criticized by several ngo’s because of low wages for the employee which is 250$ a day 32% and 20% shoes branded by nike this paper made is intended. About 4,000 workers at a factory making shoes at a factory in tangerang, an industrial centre west of jakarta run by nike contractor pt hardaya aneka, struck when the company failed to pay the new. 1st promise: all nike shoe factories will meet the us occupational safety and health administration’s (osha) standards in indoor air quality 2nd promise: the minimum age for nike factory workers will be raised to 18 for footwear factories and 16 for apparel factories. Many us firms have been taking advantage of the low wages in indonesia for some time now nike, for example, employs more than 100,000 factory workers in indonesia, paying them an average of about $350 per day still, despite the rapidly growing demand for its labor, indonesia remains one of asia’s poorest countries, with the average citizen taking home less than $3,500 per year.
Every day at 7 am, suyatmi begins work at p t hardaya aneka shoes industry, one of six companies in indonesia making sports shoes for nike inc, the spectacularly successful us sporting goods company. Several nike shoe contractors in indonesia apply for exemptions from paying new minimum wage in indonesia increase is from $225 to $246 a day massive protest march by hasi workers to regional parliament building. - a shoe factory in sukabumi, indonesia, which produces nike products allegedly hired high-ranking indonesian military officers to force workers to agree to work for less than the country's minimum wage, which had just gone up.
Nike: case study nike's indonesian factories poor working conditions 75% of workers quit within the first year undercutting indonesia's minimum wage of $1/hour paying $050/hour, make roughly $250/day after forced unpaid overtime workers and environment of factories in indonesia factory owners in indonesia indonesian governments analysis. The factory also fails to pay the legal minimum wage and the legal wage for overtime pay the legal minimum wage in dongguan is $193 (16rmb) for 8 hours of work, but workers in nority receive only $120-$145 (10-12rmb) per day. The daily livable wage in indonesia is between $400 to 450, (tanaka, protesters lace nike labor practices) yet nike still pays minimum wage to the workers who make the shoes that sell for over $100 certain conditions in vietnam are even worse. A nike spokesman did not immediately respond to a question about why nike didn’t disclose information about factory wages in the new report nike has only disclosed that information once, in a similar report released in 2001.
Since the factory introduced nike code of conduct of the factory at the factory, the pace of work has increased for example, before the nike code was applied, because of nikes stipulation on overtime working, now the workers have to finish a job in 10 hours that used to take 12 hours. On january 15, the australian broadcasting corporation (abc) revealed shocking exploitation of workers in indonesia making shoes for the global sports manufacturer, nike the report aired workers’ claims that military personnel were paid to intimidate and coerce them into accepting wages less than the legal minimum. Sukabumi, indonesia (ap) -- workers making converse sneakers in indonesia say supervisors throw shoes at them, slap them in the face and call them dogs and pigs nike, the brand's owner, admits. The ex-indonesian leader was greatly aided by corporations such as nike, as two suharto-controlled foundations owned part of pt astra international, a conglomerate with power over nike’s biggest shoe-factory partner in indonesia.
The low wage controversy in nike shoe factory in indonesia
Nike is well aware of the issues raised in the report (based on interviews with 35 workers) because we engaged in a transparent assessment of our indonesia operations with an independent entity, the global alliance for workers and communities, which involved interviews with 4,000 workers, says a statement from nike. This is because nike outsourced all of its manufacturing to indonesia, because the wages in indonesia were lower than all the other countries that nike was looking to outsource to, like taiwan and south korea (spar, 2002. The low-wage havens sought out by nike are also, not coincidentally, havens of repression when south korea and taiwan began to democratize, nike looked to indonesia, china, and vietnam for its new investment. Nike has reached an out-of-court settlement to compensate shoes factory workers in indonesia for unpaid overtime photograph: chris graythen/getty images a nike factory has agreed to pay $1m in.
Nike told reuters that all its factories are required to pay at least the local minimum wage or the “prevailing wage” this includes additional pay for overtime and legally mandated benefits. Don blair, nike’s chief financial officer, said its objective was to reduce the number of people making its products as he highlighted the impact of a sharp increase in wages in indonesia.
Nike shoe factory controversy there has been a lot of controversy lately about the working conditions and low wages in overseas nike shoe factories this controversy has affected thousands of overseas workers, hurt the economy of indonesia, decreased the gross revenue generated by the nike corporation, and lowered the overall opinion of the. Nike – the shoe company that produces those famous athletic shoes – set up factories in indonesia because of the low wages there indonesia is the most populous country of asean with 243. [with obama visiting, nike announces it might make shoes in america again] as that happens, wages in the countries left behind by us businesses will decline, and wages in vietnam will probably rise. Indonesian industry minister saleh husin inaugurated the new usd $60 million shoe factory of changshin reksa jaya in garut (west java) which will produce nike branded shoes the shoe factory has an annual production capacity of 15 million pairs and will provide employment to 5,500 people reportedly.