11 January 2012
Last updated at 23:24 ET
Nike says it will set up a task force to address grievances and offer training at the plant
Sportswear group Nike has agreed compensation in a dispute with workers in Indonesia over unpaid overtime.
The company will pay $1m (£650,000) to about 4,500 workers at a PT Nikomas plant in Serang, Banten.
The workers union that brought the case to Nike said in a statement that 593,468 hours of overtime went unpaid over the last two years.
The union said it hopes this will set a precedent for factories across the country.
“This has the potential to send shock waves through the Indonesian labour movement,” said Bambang Wirahyoso, the national chairman of the Serikat Pekerja National (SPN) trade union.
“The leadership at SPN is gearing up to take on the fight for any workers who have been subjected to forced overtime without pay. We have only just begun.”
Short-changed?
The settlement comes after 11 months of negotiations between Nike and the union.
Nike said in a statement: “Nike commends the
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