A group of 20 unions from the garment sector and two labor-rights groups – Asia Floor Wage Alliance (AFWA) and Global Labor Justice–International Labor Rights Forum (GLJ-ILRF) – have submitted a formal complaint alleging that Nike’s treatment of workers and unpaid wages violated OECD guidelines for responsible business conduct. The garment sector unions represent workers in Nike’s supply chain, at the factory and sectoral levels, in Cambodia, India, Indonesia, Pakistan and Sri Lanka.
The case, filed on Feb. 27 at the U.S. National Contact Point (USNCP) for the OECD Guidelines for Responsible Business Conduct (RBC) at the U.S. State Department, points to layoffs and terminations, arbitrary pay cuts, unpaid wages and gender discrimination since the onset of the Covid-19 pandemic in March 2020. The filing also alleges that Nike did not engage with the unions about those impacts, despite the OECD Guidelines’ recommendations and the unions’ requests for dialogue. During the pandemic, Nike allegedly failed to meet its OECD RBC responsibilities to 450,000 workers at 94 factories in its supply chain in those five countries. The organizations are now calling on the sportswear giant to remedy the alleged failings and compensate the workers for lost wages. Nike reportedly did not respond to requests for comment.
