Mustaqim Adamrah, Jakarta – Thousands of workers from two local shoe manufacturing companies staged a rally Monday to extend their demands for American sportswear giant Nike Inc. to restore contracts with their employers.

The workers were from Tangerang-based PT Naga Sakti Parama Shoe Industry (Nasa) and PT Hardaya Aneka Shoe Industry (Hasi), which manufacture shoes exclusively for Nike. Monday's rally was the second time workers from Hasi and Nasa protested, with last Monday's effort in front of the Jakarta Stock Exchange on Jl. Sudirman, South Jakarta, falling on deaf ears.

The workers marched from the Jakarta Stock Exchange to the Trade Ministry building on Jl. Ridwan Rais, Central Jakarta, and then to the headquarters of the Indonesian Employers Association on Jl. Rasuna Said. The rally caused large-scale traffic congestion in most parts of the capital.

Trade Minister Mari Elka Pangestu is scheduled to meet Nike representatives Tuesday.

The workers demanded Nike continue placing orders with their employers at the present level or provide severance pay for all workers. However, they are not employed by Nike and severance pay, by law, is the responsibility of their employers.

"We came here for the second time to demand our needs are met because we have been unlawfully exploited," Suroto said, as quoted by news portal Detik.com. "Nike has torn up contracts with our factories unilaterally. Nike must compensate for the negative impact felt by Nasa and Hasi workers," he said.

Nike Corporation sent a termination letter to Siti Hartati Murdaya, the president director of PT Central Cipta Murdaya, the holding company for both Nasa and Hasi, on July 6. The letter said Nike was to end cooperation with both companies. It provided nine month's notice, saying cooperation would end in March 2008.

Nike said the decision to end the contracts with both factories was final. The giant firm warned its contractors of their below-standard output levels and other problems in March this year by decreasing shoe orders by more than 50 percent.

Nike then placed orders with another shoe manufacturer, PT Pratama Abadi Industri, to compensate for orders canceled at Nasa and Hasi. Nasa and Hasi will operate as usual until December to complete the rest of Nike's orders.

Worker and deputy union chairman at Hasi, Hari S. W., dismissed Nike's argument, saying the factories had met the company's quality standards and used the production system it had demanded. Nasa worker Agus Darsono said there had never been any problem with product quality and quantity since cooperation with Nike began in 1988.

Sharing his concern over the fate of the thousands of workers, Tangerang Mayor Wahidin Halim said he had asked the central government to find a solution for the workers and had sent a letter to Manpower Minister Erman Soeparno. "We (the local administration) cannot interfere in such problems," Wahidin said Monday.

He said his administration would support the workers's efforts, including Monday's rally in Jakarta. "We don't want to see these workers, who are mostly Tangerang residents, lose their jobs," he said.

[Multa Fidrus in Tangerang contributed to the story.]