Nike's response to layoffs at PT Victory Chingluh
Nike worked with PT Victory Chingluh Indonesia to confirm that workforce retrenchments were implemented in accordance with Indonesia labor regulations and respective collective bargaining agreements, which require exhausting alternative measures such as collective leave and adjusted work hours first. The decision was communicated proactively and transparently to relevant stakeholders, including trade unions and government offices.
Factory trade union leaders acknowledged and appreciated PT Victory Chingluh’s proactive approach in providing advance notice of the retrenchment. Local government and local Manpower offices were also informed and consulted throughout the process, with PT Victory Chingluh maintaining regular communication and providing progress updates to these stakeholders.