As the Olympic Games approach, a coalition of human rights advocates and major Nike investors is urging the sportswear giant to pay $2.2 million in overdue wages to garment workers in Cambodia and Thailand. The demand, supported by 70 investors managing over $4 trillion in assets, calls out Nike's failure to address two significant labor rights violations.
In Cambodia, the Violet Apparel factory's closure in 2020 left workers without $1.4 million in legally owed wages. In Thailand, an illegal wage theft scheme at the Hong Seng Knitting factory deprived Burmese migrant workers of $800,000. Despite ongoing protests and global pressure, Nike has denied responsibility and ignored evidence of its products being manufactured at these factories.
The investors' resolution, set for discussion at Nike’s September annual meeting, emphasizes the contrast between Nike's substantial marketing expenditures and its refusal to pay workers. Rights groups, investors, and labor advocates continue to press Nike to address these injustices and uphold basic industry standards.
Christie Miedema from the Clean Clothes Campaign highlighted Nike's misplaced priorities, pointing out that the company spent $1 billion on marketing in early 2024 while refusing to pay $2.2 million owed to its workers. This inconsistency undermines Nike's image as a progressive, inclusive brand. Miedema emphasized that paying these workers is the only way for Nike to genuinely demonstrate care for the people in its supply chain.
The coalition demands immediate action from Nike to resolve these wage disputes and demonstrate genuine corporate responsibility.