Rebecca Lake – An Indonesian factory that produces apparel for Nike has revoked its application to be exempt from the minimum wage on Tuesday, after accusations arose that factory managers were pressuring workers to sign an agreement forfeiting their right to the pay increase, a workers rights group has reported.

Jim Keady, the director of Educating for Justice, a US-based group focused on workers' rights at Nike's suppliers, confirmed on Tuesday that the factory in Sukabumi, 80 kilometers south of Jakarta, had agreed to pay the full minimum wage.

"I'm very happy for the workers in the factory. They are getting the justice they deserve," he said. "Now we have to move forward case by case, factory by factory and make sure that in all 40 [Indonesian] Nike factories, the 171,000 workers get what they deserve."

Keady said he spent Tuesday investigating another factory making Nike products in Serang, Banten province, for labor rights abuses that include avoiding payment of the minimum wage and intimidation against its workers.

The EFJ investigative team estimates that six to eight factories are seeking exemption from the minimum wage. So far, the group has only investigated shoe manufacturing plants, but it said it suspects the majority of Nike apparel factories will also be trying to avoid paying the new minimum wage.

"What I plan to do over the course of the next two to four weeks is work with my contacts and just methodically go through the list of all of Nike's factories here and make contact with all of the trade unions at each one of the factories to find out if they are being paid the minimum wage," he said.

In response to the recent wage allegations, Nike spokesman Greg Rossiter reiterated that Nike's code of conduct was "very clear" on treatment of workers.

"Nike expects contract factory workers to be paid at least the minimum wage required by country law and provide legally mandated benefits, including holidays and leaves, and statutory severance when employment ends," Rossiter said. He added that Nike representatives were now investigating the claims of worker intimidation.

Keady, a former professional football player who turned activist 15 years ago after being distraught by sweatshop practices in the early '90s, said that even after the recent achievement, there was still a long road ahead.

"I think that there will be a battle. Personally I would love it to be as easy as a domino effect, but having been at this for 15 years, I know we are going to have to scratch our way to each victory," he said.