Many investors are calling on sportswear giant Nike to pay apparel workers in Cambodia and Thailand that a labour rights group said lost wages after Covid-19 factory shutdowns. The investors want Nike to provide US $ 2.2 million in allegedly unpaid wages to more than 4,000 workers at two suppliers in Cambodia and Thailand.
The investors want evidence that Nike is “future-proofing” its manufacturing ahead of a slew of European Union regulations aimed at the fashion industry, said Kees Gootjes, business and human rights advisor for ABN AMRO who signed the letter on behalf of the Dutch bank.
The investors, including Dutch bank Triodos and pension fund PGGM, cite a June report by the Washington, D.C.-based non-profit Workers Rights Consortium alleging that Cambodian factory Violet Apparel dismissed 1,284 workers in June 2020 with less than a week’s notice and without paying full benefits, including damages for being dismissed without cause.
As per a report of Reuters, in this regard a letter has been sent to John Donahoe, CEO, Nike, though Reuters could not independently verify the allegations.
The investor request could add more pressure to Nike, which is set to hold its annual shareholder meeting. Nike already faces growing scrutiny of its supply chain, including investigations by Canadian and US Government agencies.
Nike denied the allegations and said it has not sourced product from the Cambodian factory since 2006 and that it also found “no evidence” that it owed workers in Thailand back pay.
