Global footwear giant Nike criticized for promoting women’s sport at the World Cup while refusing to pay dues allegedly owed to Cambodian workers

Nike, a sponsor of 13 teams in the Women’s World Cup, including the Matildas, is under fire for failing to pay $1.4 million in severance pay to 1,284 Cambodian workers.

ActionAid Australia, the CFMEU Manufacturing Division and more than 50 organisations, including Human Rights Watch, are urging Nike to pay workers before the end of the tournament to be held in Australia and New Zealand.

Nike is defending women’s sport during the World Cup with a host of commercials, while at the same time reportedly refusing to pay what is owed to some of the world’s lowest-paid workers.

The workers were employed at the Violet Apparel Factory in Cambodia, which was suddenly closed in July 2020 due to the COVID pandemic.

Despite producing goods for Nike, one of the world’s richest brands, these workers would be without their legally due severance pay.

Nike has sponsored 13 teams at the World Cup, including the England Lionesses who also wear Nike-branded kits

Stock image of a Cambodian woman working in a textile factory like Nike’s that has been shut down for allegedly denying workers the payments they owe

The factory is operated by the Ramatex Group, a conglomerate that continues to produce for Nike throughout Southeast Asia.

It has rejected the workers’ claims, justifying a letter from the Cambodian Ministry of Labour. This letter states that in certain cases employers do not have to pay compensation.

Cambodia’s Arbitration Board has declined to rule on the case, citing lack of jurisdiction.

ActionAid is a global women’s rights organization working in 45 countries around the world for a just, fair and sustainable world, in which all women have the right to live in dignity and are free from poverty, injustice and oppression.

ActionAid executive director Michelle Higelin denounced Nike for championing feminism and empowering women in one country while denying women in the developing world funds they desperately need and are entitled to.

“Nike is making the amount it owes female garment workers in less than 15 minutes,” she said.

“For Nike, the amount owed is just pennies, but for the women who are struggling to put food on the table and have been forced into debt since the factory closed, the money owed would be life-changing.

It’s simple: By refusing to pay workers in their supply chain, Nike is contributing to wage theft.

Nike positions itself as a champion of women’s empowerment, but ignores the women who made the gains.

This Women’s World Cup, ActionAid is calling on players close to Nike to raise the issue and help end the three-year battle over wages owed to women garment workers.”

ActionAid Executive Director Michelle Higelin called out the hypocrisy of promoting women’s sports in one country while denying women money they are legally owed in another

Nike has made a commitment to move away from factories that use forced labor, such as those in Cambodia

Nike has been contacted for comment.

In a response in 2020, Nike claimed it had not purchased from Violet Apparel since 2006.

“Specific to the situation at Violet Apparel, we understand that the Ramatex Group is handling the situation independently and that it is moving towards resolution,” the statement said.

“Because Nike has no relationship with the factory, we cannot comment on the specific allegations or recovery status.”

The company released a statement in 2022 outlining its plan to eliminate forced labor in its factories around the world.

“NIKE takes fully seriously the national and international efforts to end forced labour, human trafficking and modern slavery,” the statement said.

“NIKE’s requirements for suppliers are included in our Code of Conduct and Code Leadership Standards.

“The Code of Conduct establishes the required minimum standards that we expect each supplier factory or facility to meet when producing NIKE products and includes strict requirements on forced and child labor, excessive overtime, compensation and freedom from association.’