How does Nike operate in Indonesia?

Nike – the shoe company that produces those famous athletic shoes – set up factories in Indonesia because of the low wages there. Today, typical workers can earn the equivalent of around $3.50 per day, which for a six day work-week amounts to $21. … In Indonesia, Nike found a country with a supply of cheap labor.

Does Nike manufacture in Indonesia?

As we understand the situation, Nike is implementing a significant relocation of production – including, though not limited to, university logo product – from Indonesia to other countries from which Nike sources. Several factories will be affected, including multiple factories producing university logo product.

Does Nike help their Indonesian workers?

Sportswear group Nike has agreed compensation in a dispute with workers in Indonesia over unpaid overtime. Its Indonesian subsidiary will pay $1m (£650,000) to about 4,500 workers at a PT Nikomas plant in Serang, Banten.

How much do Nike workers make in Indonesia?

Much of Adidas’ and Nike’s sportswear is made in Indonesia, where 80 percent of workers in the garment sector are women and some make as little as 86 euros ($102) a month while others do not earn the legal minimum wage, according to the CCC’s report.

Who is Nike’s competitor?

Nike’s competitors. Nike’s top competitors include Anta, lululemon athletica, VF Corporation, Adidas, Reebok, ASICS, FILA, PUMA, Under Armour, Skechers and New Balance.

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What countries does Nike not operate in?

Nike has been criticized for contracting with factories (known as Nike sweatshops) in countries such as China, Vietnam, Indonesia and Mexico.

What benefits does Nike bring to Indonesia?

In Indonesia, the Nike factories are a component of permissive national policies involving employment. They were located in the rural towns and in far off poorer regions and have helped to rescue thousands of families from poverty and the consequent malnutrition and illiteracy of their children.

Who is the boss of Nike?

Is labor cheap in Indonesia?

Indonesia has the largest labour force in Southeast Asia and the labour cost is still considerably cheaper than its neighbouring countries. Despite the economic slowdown in 2020, it is still one of the world’s biggest and fast-growing economies, making it attractive for doing business in Indonesia.

Does Nike have sweatshops?

Since the 1970s, Nike, Inc. has been accused of using sweatshops to produce footwear and apparel. It was built on the business model of finding the lowest cost of labour possible which led to child labour and exploitation.

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