NIKE has been accused by a group of 70 investors and more than 50 human rights groups for failing to compensate over 4,000 workers in its supply chain in Cambodia and Thailand.
The first claim involves workers from the Violet Apparel factory in Cambodia, which closed in July 2020, allegedly, without paying $1.4m in legally owed wages and benefits.
Go deeper with GlobalData
Additionally, Nike is accused of an “illegal wage theft scheme” at the Hong Seng Knitting factory in Thailand in 2020, reportedly depriving Burmese migrant workers of nearly $0.6m in wages, now amounting to $0.8m with interest.
However, this is not the first time the sportswear giant has been urged to comply with due diligence and pay dues.
In September 2023, Clean Clothes Campaign highlighted growing pressure on Nike during its online annual general meeting (AGM) on 12 September to pay the unpaid garment workers.
Fighting ‘false’ narrative
Worker-driven Social Responsibility Network, and labour union and non-governmental organisation alliance, Clean Clothes Campaign published a report accusing Nike of presenting “false” arguments over the past four years and refusing responsibility for the workers.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe report claimed Nike “denies” the Violet Apparel workers produced its products and “falsely claims” Hong Seng Knitting workers consented to unpaid leave under coercion.
The duo highlighted that Nike has been under “huge pressure” from rights groups, investors, unions, and workers themselves to ensure the workers have been paid. Despite these efforts, they noted that rather than ensuring the workers receive what they are owed, Nike has instead put considerable energy into refusing responsibility for the workers.
They explained: “In the case of Violet Apparel, the brand refuses to acknowledge that the workers produced its product, despite clear evidence to the contrary. In the case of Hong Seng Knitting, the company falsely claims that workers consented to taking unpaid leave despite clear evidence of their coercion in being forced to sign documents they didn’t want to. Instead, Nike has been hiding behind social audit reports of companies they hired to confirm their side of the story without releasing the content of those reports despite multiple requests by labour rights advocates.”
The organisations shared that a former warehouse manager at Ramatex’s Violet Apparel factory from 2010–2020 alleged Nike redirected orders to their factory despite worse working conditions.
Christie Miedema, campaign and outreach coordinator at Clean Clothes Campaign, criticised Nike for spending $1 billion on marketing in early 2024 while refusing to pay $2.2 million owed to workers.
She argued that Nike’s best way to demonstrate its commitment to inclusivity is by ensuring fair treatment for the women in its supply chain.
Miedema said: “Nike is spending ridiculous amounts of money to beat competition from new brands Hoka and On Running and not to lose any market among women and presenting itself ever more as a woke and inclusive company. But as long as their customers and investors see them denying justice to the women of colour in their supply chain this money is wasted.”
Nike did not return a request for comment when approached by Just Style.
