Global Production Networks, Latent Power Resources and (Constrained) Collective Worker Agency: Findings from a Nike Mega-Supplier in Indonesia

Abstract

This paper looks at the processes that constrain worker organising at Indonesia’s largest manufacturer, PT Nikomas-Gemilang, where 68,000 workers produce athletic footwear for brands such as Nike, Adidas, and Puma. The paper critically applies the power resource approach to understand labour relations and (barriers to) transnational worker contestation at this mega-supplier. The paper gives special attention to the power dynamics that surround the factory, including the role local elites play in undermining trade union rights. This case study casts significant doubt upon the degree of freedom of association workers enjoy at Nikomas. It argues that traditional power structures in the region where the factory is located in combination with a long history of union-busting and the existence of a legacy union has constrained the organising possibilities of the Nikomas workers. However, it also highlights a case of a successful campaign against forced overtime. This way, the article shows that even in highly globalised sectors, local context enables and limits organising possibilities.