BREAKING: Student-Worker Power wins $4.5 Million in Severance to Indonesian Garment Workers Producing for Nike
A year after launching a globally coordinated campaign by students and Indonesian garment workers, Nike-producing factory supplier Hojean is forced to pay $4.5 million in legally owed severance after Nike’s exit of a factory producing collegiate apparel — the largest severance settlement victory ever across the global garment industry.
Nike got its start producing in Indonesia 30 years ago. They built their empire and brand on the back of Indonesian labor. Throughout those 30 years garment workers, the vast majority of which are Muslim women, have fought for and maintained unions and have won better wages and working conditions.
However, in the summer of 2018, United Students Against Sweatshops combined forces with Serikat Pekerja Nasional/National Workers Union Federation-Indonesia, their factory-level affiliate unions, and the FEDERASI SEBUMI-KASBI union that represent Nike workers, following threats of large-scale factory closures endangering 30,000 garment worker jobs in Indonesia. Many of these workers have maintained strong union presence in their factories and a history of organizing for better conditions and higher pay. The majority of impacted workers are Muslim, women, and the main providers for their families. It became clear that Nike was leading the trend of union-busting and cutting and running, both of which are prevalent in the global garment industry. Powerful corporations such as Nike set industry trends and workers and students came together to say enough’s enough.
On October 12th 2018, an Indonesian factory called Kahoindah Citra Garment Factory, closed its doors and 3,000 workers were left jobless, many forced to resign because of factory management’s campaign of coercion and intimidation. According to a report released by the Workers Rights Consortium, thousands of workers were not paid their legally-owed severance and the total amount owed to these workers was between $3,000,000 and $4,000,000.
In response to the workers’ call for solidarity, USAS launched a national campaign to pressure universities to hold Nike accountable to the demands of students and workers — 1) pay the legally owed severance to workers who have been dismissed 2) respect workers’ freedom of association rights, and 3) maintain production in high union density factories in Indonesia. Students delivered demand letters to their university presidents, spoke out in town halls, held vigils, organized call-ins to administrator’s offices, dropped banners across campus, and organized other creative mobilizations to move their presidents to action.
In 2019, Nike’s history of sweatshop scandals is ever so salient despite efforts to align themselves behind messaging of racial justice and women empowerment. USAS members believe Nike’s exit from Indonesian factories with a strong history of union organizing is an affront to the values of freedom of association and promotes the disempowerment of women workers. Such actions on behalf of the company demonstrate not only a severe lack of commitment to the basic principles protected by university codes of conduct, but also a complete disregard for the lives of the workers who make Nike’s profits possible.
The collective efforts of students and workers gave way to this victory, wherein institutions and transnational corporations have been forced to respond to the demands of students and workers, both domestic and abroad. This victory builds on the historic precedent that USAS activists set with Nike in 2010 when the sports behemoth was forced to pay $2 million legally-mandated severance pay to 1,800 former Honduran garment workers.
While severance wins are crucial and create real benefits in workers’ lives in the short term, we also know that workers want to maintain their livelihood, jobs, and build on their collective power through their union. While this is one victory in the overall fight to force Nike to discontinue the brand’s historical trend of and cutting and running, we know that the support of our allies will be needed as the struggle continues. Major brands like Nike set an example for the broader garment industry and the company must be held accountable to the workers who have built its brand.
“This is the biggest severance victory USAS has ever won and I’m both grateful and proud to be a part of the fight. However, Nike still needs to be held accountable for choosing profit over people in Indonesia. While Hojean paid the workers $4.5 million in owed severance, it makes no sense that Nike hasn’t paid one cent. Severance isn’t enough, workers want their jobs back. The fight isn’t over until Nike takes responsibility for uprooting the lives of these women workers.” – Madeline Ochabillo, Villanova University, USAS Local 75
If we let go of the pressure, Nike will continue to pull production from high union density factories in Indonesia in search of cheaper labor. Each day that Nike isn’t held responsible for its union-busting practices is another day the brand becomes more emboldened to replicate these actions across the global supply chain. USAS is committed to standing in solidarity with Indonesian garment workers.
USAS is immensely grateful to our allies and supporters who helped make this victory possible. Stay tuned for more campaign updates over the coming weeks and please donate today to help us continue our work. Solidarity!