Nike Compensates Migrant Workers Five Years After Labour Controversy

Nike has reached a settlement to compensate thousands of former garment workers at a Thai supplier following a multi-year investigation into pandemic-era wage theft allegations.

The payments made to roughly 3,300 workers relate to a Bangkok factory owned by Hong Seng Knitting that manufactured Nike apparel and accused to have coerced workers into accepting unpaid leave in 2020 according to an initial investigation by labour organisation Workers Rights Consortium.

In December 2024, a separate investigation commissioned by the Fair Labor Association, a human rights monitoring organisation that counts Nike as a member, recommended the brand help compensate workers who were furloughed without pay by a supplier. However, it concluded that there was no evidence of systemic coercion or illegal action on the part of the factory or brand, but instead identified several “significant issues,” including poor communication, Nike’s sudden exit at the pandemic’s onset and a lack of any complaints mechanism.

The FLA’s investigation was privy to criticism from multiple labour advocacy organisations including Clean Clothes Campaign and the Worker’s Right Consortium for failing to defend worker’s rights and recognise that coercion, intimidation and abuse led to workers being denied pay. Central to this criticism was the case of garment Burmese migrant worker Kyaw San Oo, who became a prominent advocate during the dispute and faced retaliation in the form of a criminal charges.

In early 2025 based on the FLA’s recommendation, Nike agreed to pay workers like San Oo, who did not sign the documentation to voluntarily opt out of being paid their full wage during the pandemic. Since then the brand has compensated all of the wages for unpaid leave days taken in 2020 to all workers. While workers who are still employed at Hong Seng have received compensation in the form of paid leave, those who have left have been paid out in cash, according to the FLA’s most recent update on the investigation. The latest report also noted that any unused leave will be cashed out at the end of 2025.

However, the most notable outcome of the pay out was for Kyaw San Oo. In December, after five years the WRC confirmed that the worker received a compensation of $42,000 for the retaliatory harm he suffered, an increase from the roughly $1,800 Nike agreed to based on the recommendation of the FLA’s 2024 report on the case.

San Oo’s case drew much attention to the FLA, including internal conflict within the organisation, leading board member Nazma Akhter, founder of Bangladeshi labour organisation AWAJ Foundation, to resign from the board in protest. Labour advocacy groups have pointed to her departure as a key factor in Nike’s decision to offer the final compensation amount ultimately agreed upon. However, the FLA said the settlement figure was agreed among the parties in early October following recommendations from its working group, adding that Akhter remained involved in the process and did not resign until December 18. It marks one of the largest compensation settlements in the garment industry to a single worker.

Nike said that when it became aware of the allegations at Hong Seng Bangkok in 2020, it promptly worked with a third-party investigator and legal counsel to review and investigate. While the brand noted that multiple investigations found that the impacted workers were compensated in accordance with local law and Nike’s code of conduct, it often encourages its suppliers to go above and beyond legal requirements

“We were glad to collaborate with involved parties to bring final resolution to this case, in alignment with the FLA’s conclusions and recommendations,” it said.

The outcome “affirms that corporations are accountable for the abuses in their supply chains,” said Clean Clothes Campaign in a statement. It noted that the final payment to San Oo “raises the stakes for brands that would disregard migrant workers’ human rights and the right to organise.”

Learn more:

Nike Told to Compensate Workers in High-Profile Labour Controversy

An independent investigation commissioned by The Fair Labour Association — a human rights monitoring organisation that counts Nike as a member — identified several ‘significant issues’ in a long-standing case of alleged wage theft.

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Editor's note: This story was updated on Jan. 15, 2025 to add the Fair Labour Organisation's comment on Nazma Akhter's resignation.