KEY POINTS:
JAKARTA - US sportswear maker Nike has offered to delay severing contracts with two Indonesian shoe firms employing 14,000 people, a Nike executive said yesterday.
Nike had said in July that it would stop taking orders at the factories owned by Central Cipta Murdaya - PT Hardaya Aneka Shoes Industry and Nagasakti Paramashoes Industry - at the end of this year.
The decision, which Nike said it made after the firms failed to meet its standards, sparked street protests by thousands of employees from both factories.
But in a statement sent to Reuters this week, Nike reversed its position.
It repeated its commitment to keep Indonesia as one of its top sourcing countries and said it would extend the contracts provided the two companies made a firm commitment to improve their performance.
- REUTERS
