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26th July 2007

Nike threaten to cut orders in Indonesia.

Over 5,000 workers from Indonesian shoe companies resumed their rally on Monday, demanding the U.S. shoe company not to cut orders. Nike claim they have decided to terminate contracts with two local companies due to poor quality and plan to find other local partners. The owners of the local companies say that they can't make the shoes for the 11 U.S.dollars offered by Nike, less than the 15 U.S. dollars price a pair 15-18 years ago, due to high wage bills paid to their long-term staff. "Now Nike is trying to find new factories which offer lower prices of 10 U.S. dollars or even 7 U.S. dollars a pair," said the factory owner.

Read more in the Indonesian paper People's Daily.



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