Dispute Settled at Indonesian Nike Contractor

A violent union protest involving nearly 5,000 workers at an Indonesian factory that makes shoes for Nike Inc. was resolved after the owner, PT Hardaya Aneka Shoe Industry, agreed to a 10.7% pay increase, a Nike spokesman said. Angry workers at the factory outside Jakarta said they were not being paid Indonesia’s $2.50-a-day minimum wage, but Nike said they receive more than that. The Beaverton, Ore.-based shoe manufacturer said Indonesia, where labor unrest has led to a threefold increase in wages over the last two years, is in danger of pricing itself out of the market. In an unrelated incident, 3,000 workers working for a Nike subcontractor in Vietnam walked off the job on Friday over a wage dispute.