"Nike Brand Shoe Factory in Tangerang Lays Off 2,804 Employees", 30 October 2025

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PT Victory Chingluh Indonesia, a factory that is the main supplier of Nike international brand shoes in Pasar Kemis, Tangerang, officially laid off 2,804 of its employees by the end of October 2025...

The General Chairman of the Confederation of the Congress of the Alliance of Indonesian Trade Unions (KASBI), Unang Sunarno, confirmed this sad news.

According to Unang, the company reasoned that the layoffs were forced to be carried out due to a drastic decrease in export orders. This decline was triggered by complaints from overseas buyers who returned products due to a decline in the quality of production results...

Regarding workers' rights, PT Victory Chingluh Indonesia offers a compensation scheme of at least two severance pay, an offer that is claimed to be in accordance with negotiated terms.

Until now, the process of housing workers runs in two stages:

• 1,824 people have approved and received layoffs and their compensation.
• The remainder, 980 workers (out of a total of 2,804), are still in the negotiation stage between workers' representatives and the company's management.

Although the company offers compensation, the union considers this layoff policy to be non-transparent and potentially detrimental to workers. They urged the Government, especially the Ministry of Manpower, to immediately intervene to oversee the process of resolving workers' rights fairly and find strategic solutions to prevent further layoffs in the export-oriented shoe industry...

[Translation via Microsoft Edge]