Indonesian Nike supplier leaves workers with US$3m shortfall

WASHINGTON – A leading US labour rights group is urging Nike put its weight behind the claims of Indonesian workers who were left with a US$3m shortfall in severance pay when the Korean-owned factory they worked in relocated. PT Kahoindah Bekasi is a garment factory in Indonesia which, prior to its closure in October 2018, supplied university logo goods to Nike. The US-based Worker Rights Consortium claims to have uncovered evidence that the factory’s management used threats, workplace retaliation, and deception to compel employees to resign in exchange for a severance payment that was only half of what the law requires under onerous Indonesian regulations around severance payments.