NEW YORK: More than a dozen investors have demanded Nike to clear all dues of garment employees in Cambodia and Thailand ahead of the company’s meeting, reported Western media on Monday.
In a letter to Nike’s CEO John Donahoe they said the company must pay $2.2 million in allegedly unpaid salaries to more than 4,000 workers at two suppliers in Cambodia and Thailand.
The development is likely to put more pressure on the sportswear giant, which is about to hold its annual shareholder meeting on Tuesday.
Nike under strict scrutiny by Canada, U.S.
Nike is already facing strict scrutiny of its supply chains by Canadian and U.S. government agencies.
Kees Gootjes, business and human rights advisor for ABN AMRO, who signed the letter on behalf of the Dutch bank said the Nike investors seek evidence that the company is “future-proofing” its manufacturing.
Nike rejected the accusations in a statement to Reuters. The company said it has not obtained the product from the Cambodian factory since 2006 and doesn’t owe any money to workers in Thailand.
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The investors, including Dutch bank Triodos and pension fund PGGM alleged that Cambodian factory Violet Apparel sacked 1,284 workers in June 2020 with less than a week’s notice and without paying full benefits.
Violet Apparel was owned by global textile manufacturer and Nike supplier Ramatex, before its closure in July 2020, according to the investors.
They say that Violet Apparel manufactured clothing for Nike as a subcontractor until 2020, however, Nike says there is no evidence that Violet Apparel made Nike items after 2006.
As per reports another Nike supplier, Hong Seng Knitting in Thailand, has refused to provide roughly $800,000 pay to more than 3,000 mostly Burmese migrant workers.
