Indonesian Labor Association Movement (GSBI) secretary-general Emelia Yanti Siahaan criticized PT Victory Chingluh for reducing workdays and slashing the salaries of over 17,000 workers since July despite opposition from the unions.

PT Victory Chingluh is a Taiwan-based shoe factory in Tangerang, Banten, that has solely produced footwear for Nike since 2018. GSBI and four other labor unions had rejected the company’s recent pay cuts, Emelia said.

“The off-days are not what workers want, but that’s the company’s decision. So [money lost from] salary cuts due to the off-days should be given back to workers,” she said recently, noting that Nike had yet to respond to a letter the union sent to it questioning the matter.

She also condemned the lack of the union’s involvement in the layoffs.

The company told unions in early April that it would lay off 564 workers who were still in their three-month training period.

It then told them again that it would fire some 4,988 workers on April 21 who worked for less than a year, which made up less than a quarter of Victory Chingluh’s 23,000 workers at the time, Emelia said.

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