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PT Sai Apparel, listed in our public supplier list, is one of our suppliers. Our local team has contacted both the supplier, as well as Better Work Indonesia about this case.

Based on our investigation, we do not consider this a violation of labor law or social dialogue principles. Indonesian labor regulations allow for wage adjustments through mutual agreement when employers are unable to provide work. PT Sai Apparel applied this provision through a bipartite negotiation process involving both union and non-union worker representatives, resulting in a mutual agreement in August.

The process followed was lawful and inclusive, and the agreement reached reflects the context and constraints faced.

That said, we recognize that even when legally sound, such wage adjustments can raise concerns about worker protection. We remain committed to continuously evaluating the broader impact of our purchasing practices and to promoting constructive social dialogue and fair agreements between employers and workers throughout our supply chain.

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