Beaverton, Oregon - The US sporting goods giant, Nike, has terminated contracts with four factories in Indonesia because employees there earn less than the minimum wage, a Nike spokesman said last night.
It is the first time that Nike, which oversees more than 50 sub-contracted factories in Indonesia, ended contracts because factories are not paying the minimum wage.
This decision comes as Nike is under growing pressure from human rights groups to change its overseas labour practices. In recent months, the company has reviewed its operations in China, Vietnam and Indonesia.