Two Australian bodies have accused global footwear brand Nike of refusing to pay 1,284 Cambodian garment workers US$1.4 million in legally owed severance pay.
Global women's rights organisation, ActionAid Australia, alongside the Manufacturing Division of the CFMEU and the garment workers they represent, are calling on Nike to pay their workers by the end of the Women’s World Cup.
In July 2020, 1,284 women garment workers at the Violet Apparel Factory in Phnom Penh, Cambodia were let go when the factory abruptly closed during the COVID pandemic according to multiple reports.
ActionAid Australia executive director Michelle Higelin said Nike makes the amount that it owes female garment workers in under 15 minutes.
“For Nike, the amount owed is mere pennies, but for the women who are struggling to put food on the table and have been forced to take on debt since the factory closed, the money owed would be life-changing,” Higelin said.
“It is simple: by refusing to pay workers in their supply chain, Nike is contributing to wage theft.”
Nike reportedly made kits for 13 national teams in the 2023 FIFA Women's World Cup. It also made off-pitch collections, including one for Australia’s CommBank Matildas team.
Higelin said ActionAid is appealing to players with close ties to Nike to raise the case.
“Many of the women we’re watching on the field know what it’s like to stand together to win equal and fair wages,” Higelin said. “We commend these players for the strong and inspiring stance they’ve taken for gender equality, and we hope when they hear about the plight of Cambodian women garment workers, they’ll act together to urge Nike to do what’s right.”
Meanwhile, CFMEU national secretary for the textile, clothing and footwear manufacturing division, Jenny Kruschel, said no worker should be exploited in the name of fashion.
"We call on Nike to pay the unpaid wages and compensation to the workers who made their garments now,” Kruschel said.
“All brands and manufacturers should be held accountable for their supply chains. When we buy a garment, we should know the name and location of the factory that made that garment, have confidence that all workers can work in a safe workplace, be treated with respect, and receive a living wage.
“Workers must have the right to organise and join a union.”
On Sunday, August 6, ActionAid activists and trade union members gathered outside Federation Square in Melbourne during the Sweden vs USA match to demand Nike pay their workers.