Nike to pay $1m overtime bill

Nike has agreed to give workers in Indonesia €1m in unpaid overtime, unions say.

The sport equipment giant had failed to pay nearly 600,000 hours over a two-year period, says the union which represents nearly 4,500 employees from the PT Nikomas shoe plant in Banten province.

The money will be distributed to the workers by early next month.

Officials at Nike could not immediately be reached for comment.

The union hopes the case will set a precedent in a country where factory employees often work seven day weeks without overtime or proper benefits.

Nike, which came under heavy criticism a decade ago for its use of foreign sweatshops and child labour, has taken steps since then to improve conditions at its 1,000 overseas factories.