Fact Sheet: Central Java Agreement for Gender Justice

Background

After organizing against gender-based violence and harassment on the factory floor, courageous women workers negotiated a groundbreaking agreement to implement a union-led gender justice program, signed in July 2024. The two garment factories in Central Java, Indonesia, employ 6,250 workers that produce university logo apparel and other products for Fanatics, including both Fanatics’ own products and, under license, Nike branded apparel. The factories are owned by the firm Ontide, which was recently purchased by Korean multinational Creas F&C. For years prior to this, the factories operated under different ownership under the name Kukdong. The workers are represented by four unions: at factory PT Batang Apparel Indonesia, SPN, SPSI, and KASBI, and at factory PT Semarang Garment Indonesia, SPSI. Three global labor partners, the Worker Rights Consortium (WRC), Asia Floor Wage Alliance (AFWA), and Global Labor Justice (GLJ), supported the negotiations and are signatories to the agreement. The agreement illustrates how leading multinational corporations like Fanatics and Ontide can partner with unions and global labor allies to move towards violence-free workplaces with respect for workers’ dignity and rights.

This Agreement was created in response to a pattern of gender-based violence and harassment that was documented by the WRC in response to complaints from women workers. These investigations found that women workers were being touched without their consent, subjected to sexual comments and demands, verbally abused, and being pressured to give “gifts” to factory personnel. Key factory managers were complicit in these abuses and failed to address abuses when they were reported. When the WRC reported these violations and the need for extensive remedies to Fanatics and Ontide in 2022 and 2023, the companies responded by taking prompt remedial action and then by negotiating the agreement ultimately signed by Ontide in 2024.

The Central Java Agreement provides for a union-led program to address gender-based violence and harassment at Ontide’s two Indonesian factories and requires factory management to comply or risk losing their business with Fanatics and Nike. The program includes best practices from the Dindigul Agreement to Eliminate Gender-based Violence and Harassment and the Lesotho Agreement to End Gender-based Violence and Harassment, including: defining GBVH with reference to the ILO Convention 190 on Violence and Harassment; incorporating best practices identified in Convention 190 and the related Recommendation 206; union-appointed worker shop floor monitors on GBVH; a worker-developed list of prohibited practices and available

PSP SPN PT Batang Apparel Indonesia

remedies; a multi-channel grievance mechanism; robust training for the full workforce; and global dialogue among local unions, global labor stakeholders, the supplier, and the supply chain buyer, Fanatics. The Agreement complements the existing collective bargaining agreements at both factories. It is enforced through Fanatics’ binding commitments to member universities of the WRC.

Signatories

Unions

●  Plant-Level Leadership, Union of Textile, Clothing, and Leather Workers, Confederation of All-Indonesia Workers’ Union, PT Semarang Garment (PUK-F.SPTSK-K.SPSI PT Semarang Garment)

●  Plant-Level Leadership, National Workers’ Union PT Batang Apparel Indonesia (PSP SPN PT Batang Apparel Indonesia)

●  Plant-Level Leadership, Union of Textile, Clothing, and Leather Workers, Confederation of All-Indonesia Workers’ Union, PT Batang Apparel Indonesia (PUK-F.SPTSK-K.SPSI PT Batang Apparel Indonesia)

●  People’s Democratic Union, Indonesian Trade Union Congress Alliance, PT Batang Apparel (SBDK KASBI PT Batang Apparel)

Suppliers

●  PT Batang Apparel Indonesia, owned by Ontide (formerly Kukdong Corporation)

●  PT Semarang Garment Indonesia, owned by Ontide (formerly Kukdong Corporation)

Global supply chain buyer

● Fanatics Brands, a leading designer, manufacturer, and seller of licensed fan gear for the NFL, NBA, MLB, and many WRC-affiliated universities, headquartered in the U.S.

International labor allies

●  Asia Floor Wage Alliance (AFWA)

●  Global Labor Justice (GLJ)

●  Worker Rights Consortium (WRC)

Scope

The agreement covers all 6,250 workers at two factories in Central Java, a major garment manufacturing region in Indonesia, approximately 5,600 of whom are women. The Agreement complements the existing collective bargaining agreements at both factories and is not term- limited.

This union-led program on gender-based violence and harassment includes:

Global labor standards on GBVH: The Agreement prohibits all violence and harassment, including GBVH in the world of work, as defined by Convention 190. The Agreement also incorporates other key elements from C190, including an inclusive definition of who is covered by the agreement; recognition that GBVH covers a wide range of behaviors and can result in physical, psychological, sexual, and economic harm; and can occur during or outside of work or can be linked to the workplace. The Agreement puts into practice mechanisms for the unions and management to identify risks and develop policies and practices to address GBVH at the factories and includes a commitment to respect freedom of association.

Union-management committees leading implementation: The Agreement provides for GBVH Elimination Committees at each factory with equal representation from unions and management and a majority of women members. These committees will oversee implementation of the agreement, coordinate investigation of complaints, and issue recommendations for remedy. The Agreement also provides for a role for AFWA, GLJ, and WRC to support the GBVH Elimination Committees, including designating a chair for each GBVH Elimination Committee, in implementing the program and conducting investigations when needed.

Worker-led education for full workforce: A training team consisting in large part of factory workers will provide comprehensive training to the full workforce on GBVH and workers’ rights in the workplace.

Worker Shop Floor Monitors: Based on the Dindigul Agreement’s Worker Shop Floor Monitor program, unions have the right to appoint workers designated as Shop Floor Monitors to serve as part of an Anti-GBVH Task Force to support workers to monitor, report, and remediate GBVH.

Multi-channel grievance mechanism: The grievance mechanism includes multiple options for workers to report GBVH and seek remediation, including bringing complaints to the GBVH Elimination Committees, Shop Floor Monitors, or their unions, and requesting independent investigations.

Anti-retaliation and freedom of association protections: The Agreement provides protections against retaliation for complainants, witnesses, and Shop Floor Monitors. It also recognizes that employer respect for freedom of association is essential to addressing GBVH.

Fair and timely investigations and remediations of complaints: The GBVH Elimination Committees, which consist of union-appointed workers and management representatives, are empowered to investigate complaints and determine remediation if a worker requests it or if there is a conflict of interest for Committee members; the global labor partners will be responsible for the investigation and determining remediation. The Agreement provides for a survivor-centered approach to handling of GBVH cases and fair and timely processes for investigation and remediation. Management’s failure to implement the required remediation may result in a finding of material default and business consequences for Ontide Corporation by Fanatics.

Global Coordination Dialogue: The Agreement establishes a regular convening of all unions, global labor stakeholders, Ontide, and Fanatics to exchange information about program implementation and resolve any disputes among the parties.

Enforcement:

Fanatics sources its own product from these factories and also manages the sourcing of Nike licensed apparel from these plants; as part of its partnership with Nike, Fanatics has been the key point of contact in this process.

Fanatics and Nike are contractually obligated under their licensing agreements with WRC- affiliated universities to condition business with Ontide, as a supplier of university logo apparel, on the latter’s compliance with its legal obligations to workers. This includes Ontide’s obligation to honor collectively bargained contracts like the Central Java Agreement for Gender Justice. Fanatics has provided written affirmation that it will support the program and will hold Ontide accountable for compliance with the Agreement.

Under the Agreement, these commitments will be monitored by the WRC in its role as an official monitor for its affiliate universities, in coordination with the unions, AFWA, and GLJ.