Jakartass Home thoughts from abroad. Alien thoughts from home.

Some news about Indonesia slips below the radar of the print media because of the demands for space from advertisers and the editorial slants, often dictated by the owners who have their business and/or political interests to protect.

Someone who has no axe to grind other than a very strong moral sense of righting wrongs is Jim Keady, an American who I've written about a number of times before. He campaigns for improved working conditions for the workers employed by Indonesian companies to produce Nike sportswear and makes regular trips to Indonesia to discuss conditions with the management and workers.

Over the years, companies sub-contracted to produce sportswear here for Nike and Adidas have been the subject of a number of investigations into their labour practices.

PT Nikomas Gemilang is one such. It is a joint venture with the Pou Chen Corp. of Taiwan which has been accused of numerous labour law violations in China, Thailand and Vietnam, and their factory is in Serang, 100 kms west of Jakarta.

In 1996, PT Nikomas was accused of employing "slave" child labour.

A Jakarta-based international labor observer [said] that they have "boxes of reports" on Nike abusing worker rights in Indonesia which include "child laborers or workers earning 20 to 24 cents an hour, less than two dollars a day."

The observer, who asked to remain anonymous, said that Nike does not employ the workers directly. "They form partnerships with companies with ties to the military and the First Family [of President Suharto] as well as Chinese businessmen. They are the ones who handle the workers."

(It was wise to remain "anonymous" in the latter years of Suharto's regime.)

In 2002, OECD Watch, "an international network of civil society organisations from across the world promoting corporate accountability and responsibility", investigated a complaint that an Adidas supply chain in Indonesia (including PT Nikomas) was violating labour rights.

"Specifically, workers have been denied the right to organize and to collective bargaining. They have been subjected to intimidation ranging from humiliation, arbitrary arrests and threats to their health and safety. As a result, workers are unwilling to speak out about abuses out of fear of retaliation.

"In addition, workers do not receive a living wage. The low wages impacts parents, particularly women, who are frequently forced to live away from their children. The complaint also raises occupational health and safety issues."

Another allegation from 1996 concerned the issue of overtime at PT Nikomas.

Sumantri, a 25-year old labour activist, said of the factory: "From the outside, it looks like heaven, but for workers on the inside, it's hell. Overtime is mandatory. Workers say exhausted colleagues regularly faint from overwork. Punishment for misdeeds consists of petty humiliation. A supervisor who skipped work one Sunday to care for his sick wife and child was forced to clean toilets and then was demoted. Another worker had to run laps around the factory because shoes she assembled had defects."

From an email sent two days ago by Jim Keady to the CEO of Nike inc., Mark Parker, it would appear that little has changed.

Nike workers cheated of millions

Dear Mr. Parker,

On February 6, 2011 I had the pleasure of meeting with representatives from the Serikat Pekerja Nasional (SPN) in Serang, Indonesia, to discuss the current conditions for Nike factory workers producing at PT Nikomas.

During this meeting, I was told that Nike factory workers at PT Nikomas are being forced to work unpaid overtime to meet Nike’s production quotas.

Here are the facts as they were given to me:

• There are approximately 18,000 Nike factory workers at PT Nikomas and they produce more than 2,000,000 pairs of Nike sneakers per month.
• Nike factory workers at PT Nikomas typically work from 7am-3pm. This is followed by three hours of paid overtime.
• Following their regular shift and paid overtime hours, your factory workers are then told by their supervisors to punch out on the time clock.
• Once your workers are off the clock, they are forced by their supervisors to get back on the production line for one hour of unpaid overtime.
• This hour of forced, unpaid overtime happens primarily in the sewing divisions and includes approximately 13,000 Nike factory workers.
• The hourly wage for a fourth hour of overtime would be Rp.12.600 ($1.40).
• Nike factory workers are being forced to work this unpaid hour 6 days a week.
• If these allegations are accurate, Nike factory workers at PT Nikomas have been cheated out of approximately $5,460,000.00 this past year – $1.40 (rate) x 6 (days) x 50 (weeks) x 13,000 (workers) = $5,460,000.00.
• The SPN representatives shared that this forced overtime/wage cheating has been happening to Nike factory workers at PT Nikomas for 18 years.

Jim has asked Mr. Parker to take a number of steps before March 8th regarding this serious allegation. I too look forward to a positive response, rather than yet another pathetic excuse along the lines of "don't blame us, blame the local company."

Watch this hyperspace for developments.