Nike Factory Workers in Asia Reportedly Earning Wages Below Living Standards
An investigation reveals that some workers in Nike's Asian supply chain are forced to take on second jobs, such as collecting trash, to supplement incomes that fall short of covering basic necessities.
Some factory workers manufacturing Nike products in Asia are reportedly earning wages so low that they must take on additional jobs, including collecting discarded materials, to make ends meet. This situation arises despite the sportswear giant's stated commitment to ensuring employees earn a living wage, according to an investigation by The Oregonian.
Workers interviewed in Indonesia and Vietnam described earning monthly salaries as low as $150 to $205, an amount insufficient to cover necessities like food, housing, healthcare, and transportation. Some individuals are forced to work long hours during their days off collecting bottles and scrap materials or selling snacks and cosmetics to supplement their factory pay.
One Vietnamese woman with 20 years of experience at a sneaker factory stated that her wages were "not enough" and that she "has to do this outside work" because "there isn't anything else I can do." Her struggle comes nearly a decade after Nike publicly pledged to ensure factory employees earn a living wage sufficient for necessities and some discretionary spending.
In Vietnam, where Nike manufactures nearly half of its sneakers, some factory job advertisements offered starting salaries as low as $236 a month. Workers in Indonesia reported earning as little as $150 a month, which is less than the retail price of some of Nike's popular footwear.
An Indonesian woman with 25 years of experience at a factory producing Nike products said she earns approximately $270 a month and is unable to save money. She manages to save through a separate food selling business. Another worker estimated that up to 70 percent of her colleagues hold second jobs, with some risking their jobs by secretly selling items within the factories.
Beyond inadequate pay, the investigation also highlighted the cramped living conditions experienced by employees who have relocated from rural areas to work in Nike's supply chain. Some workers reside in small, basic concrete apartments, and many cannot afford motorized transport, walking to work instead.
Nike contracts with 712 factories globally, including 183 in Vietnam and 64 in Indonesia. These facilities employ hundreds of thousands of workers. The company has historically faced scrutiny over its supply chain labor practices, particularly following scandals in the 1990s, and has since promoted improvements in working conditions, including enhanced safety, cleaner environments, timely wage payments, and the elimination of forced overtime and child labor.
Despite these acknowledged improvements, widespread concerns about pay persist. The scrutiny comes as Nike navigates financial challenges, including falling sales and a recent announcement of a significant cost-saving restructuring. The company defended its labor record, asserting that substantial progress has been made in its supply chain and that efforts to improve conditions continue. Nike has stated, "For more than 30 years, Nike has consistently worked to advance a responsible and resilient supply chain... we know it is not complete and the work continues."