Indonesian Firms Fired By Nike

Nike Inc. said Monday it has severed ties with four Indonesian-based contractors because they failed to comply with the company’s requirements for wages and working conditions.

The company announced the unprecedented action at its annual shareholders meeting.

Nike has been under intense criticism from workers’ rights groups because of alleged poor working conditions and low wages at factories in Indonesia, China and Vietnam.

Nike only identified one of the subcontractors, Seyon. Nike said it has cut its relationship with Seyon, which manufactures specialty sports gloves, because it didn’t conform to Nike’s policies that all contractors pay the country’s full cash minimum wage.