A Nike contracted factory has agreed to pay around £650,000 to 4,500 workers in Indonesia who had been in dispute about unpaid overtime.
The factory will also set up training programmes and a task force to address workers' grievances. Those moves come after 11 months of negotiations with the the Serikat Pekerja National (SPN) trade union.
'Nike commends the factory on their action plan and efforts to correct inadequacies in current policies designed to protect the rights of workers,' said the company in a statement. 'Nike will continue to monitor and support their efforts to remediate the situation.'
The decision could have consequences for other brands active in Indonesia. The SPN told the BBC that 593,468 hours of overtime had gone unpaid in the last two years, and warned that it would take on any organisation pushing its employees to work unpaid overtime.
Bambang Wirahyoso, the union's national chairman, said: 'The leadership at SPN is gearing up to take on the fight for any workers who have been subjected to forced overtime without pay. We have only just begun.'
