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Tuesday, Nov 04, 2025

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Nike Accused of Wage Theft and Failing to Compensate Workers

Allegations Arise from Factory Closures in Cambodia and Thailand
Nike faces accusations from a coalition of 70 investors and over 50 human rights groups for allegedly failing to compensate more than 4,000 workers in its supply chain in Cambodia and Thailand. The primary allegations involve two factories: Violet Apparel in Cambodia and Hong Seng Knitting in Thailand.

The Violet Apparel factory in Cambodia closed in July 2020, reportedly without paying $1.4 million in legally owed wages and benefits. Additionally, Nike is accused of orchestrating an "illegal wage theft scheme" at the Hong Seng Knitting factory in Thailand in 2020, allegedly depriving Burmese migrant workers of nearly $0.6 million in wages, which has now accrued to $0.8 million with interest.

Despite growing pressure from human rights groups, investors, and labor unions, Nike has repeatedly denied responsibility. A report by the Clean Clothes Campaign accuses Nike of presenting false arguments and refusing to acknowledge the workers’ contributions. The campaign highlights the contrast between Nike's substantial marketing expenditures and its failure to settle the $2.2 million owed to workers.
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