Kukdong (Indonesia) Workers Receive Full Severance


December 13, 2019

Dear colleagues,

I am pleased to report that another group of Indonesian workers who produced university logo apparel have received the full severance pay they are owed under law. Following closely on the case of PT Kahoindah Citragarment, which we updated you on earlier this month, a second firm, PT Kukdong International, has paid out more than nine million dollars to 1,021 workers. The factory, which provided these funds when it closed in September, supplied collegiate licensed apparel to Nike and non-collegiate apparel to Fanatics. A WRC memo with further details on the Kukdong closure and the payment of these funds can be found here

While this closure remains a sad event for these workers, the fact that the owner chose to pay the full, legally owed severance at the time of closure is a rare bright spot. As in many countries where collegiate apparel is produced, the theft of legally required severance payments remains an all-too-common occurrence for garment workers in Indonesia. 

This payment, which will have a sizable and lasting impact on each of these workers and their families, is a testament to the value of university codes and the work by Indonesian workers and their allies to hold their employer accountable. It also reflects recognition by Nike and Fanatics of their obligation to ensure that Kukdong provided the funds required by Indonesian law and university codes.