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View all search resultsNike supplier to lay off 2,804 workers in second ‘efficiency’ round
Victory Chingluh Indonesia plans to lay off thousands of workers after reducing its workforce by 2,000 in March, but labor union group KASBI says workers are unfairly paying the consequences for an issue to do with production quality.
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Nike sneakers are displayed on June 28, 2022, at a factory store of the United States athletic footwear and apparel brand in Milpitas, California. (Getty Images via AFP/Justin Sullivan)
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anten-based footwear manufacturer PT Victory Chingluh Indonesia, a supplier of United States sports brand Nike, is reportedly planning another mass layoff by the end of this month, this time affecting 2,804 workers at its Pasar Kemis factory in Tangerang.
Earlier in March, Victory Chingluh laid off 2,000 workers in the first round of its so-called efficiency program this year.
Unang Sunarno, chairman of the Congress of Indonesia Unions Alliance (KASBI), has confirmed the report. He also said KASBI was opposed to the move, citing company data it had gathered indicating that the planned layoff was linked to reexport activities amid declining production quality.
“We oppose the unilateral layoffs because this is no fault of the workers, but rather a problem with the production system. Workers should not be made victims of management failures,” Unang said on Tuesday, as quoted by online media outlet Tirto.id.
He added that the alliance had held a series of meetings to negotiate with the company, and that both sides had agreed to a voluntary layoff scheme. Workers who opted to leave would receive a full compensation package that included double the standard severance pay in line with labor laws.
He also stressed the need for transparent communication between the Victory Chingluh management and workers, noting that its factory in Cikupa, Tangerang, was still operating normally with good production quality.
“The situation at Pasar Kemis should not be used as an excuse to intimidate workers who are demanding a wage increase in 2026,” Unang said.
