Jim Keady, founder of Team Sweat, an organization dedicated to the exposure of sweatshop conditions of Nike factories throughout the world, is pressuring the company’s CEO to address allegations of union busting at its factory in Tangerang, Indonesia.
In a letter to Nike CEO Mark Parker, Keady outlines a series of events at the PT ADIS factory in Indonesia, including the termination of five key union leaders.
“If these allegations are accurate, this is a clear violation of Indonesian law and Nike’s Code of Conduct,” Keady wrote.
The allegations of union busting stem from workers’ efforts to organize at the PT ADIS factory, effective May 30. On that day, workers elected five representatives to serve on the Serikat Pekerja Nasional union board.
Under Nike’s Code of Conduct, this is allowed: “To the extent permitted by the laws of the manufacturing country, the contractor respects the right of its employees to freedom of association and collective bargaining,” the code states. “This includes the right to form and join trade unions and other worker organizations of their own choosing without harassment, interference or retaliation.”
Yet according to the accounts of the five union representatives, they were subject to harassment, interference and retaliation.
The first to go was the union’s secretary, Mohammed Ridwan Simanjutak. According to Keady, Simanjutak was called into the factory’s industrial relations manager’s office on June 5, where he was pressured to leave Nike because of his involvement with the creation of the union. He was offered $1,808 to accept termination, according to Keady’s letter. Simanjutak initially refused, but after being detained from 8 a.m. to 4:30 p.m., he accepted termination at an escalated price of $2,828.
The chairperson of the union was next. On June 7, Chairperson Ahmad Junaedi went into the human resources department to present the letter of recognition regarding the establishment of the union. Later that day, he was called back to the office and told the PT ADIS factory would not recognize the union. Junaedi, too, was allegedly bribed with a termination payoff, according to Keady’s letter. After refusing to sign the termination letter, Junaedi was detained for two hours before his release.
Three other union leaders met similar fates when called into the human resources department on June 7. Two were ordered to leave the factory.
These allegations were presented to Nike’s CEO at a time when the company is aiming to bolster its image. Keady is requesting Nike not only hire back the union officials who were terminated, but also that the company send executives from its U.S. headquarters to the factory to train management on Indonesian law and Nike’s code of conduct.
Nike has not issued any statements regarding the allegations. Keady requested a response to the letter and allegations by July 17.