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Nike’s ethics code was put to the test when Thai factory workers demanded back wages from the pandemic. Five years later, an agreement has been made.
“Just do it” could have been the slogan for the factory workers impacted by wage theft who have been advocating for $600,000 in wages from Nike. Five years later, an agreement has been made with the athleisurewear brand, agreeing to compensate the workers affected.
While this case ends on a celebratory note for the factory workers, the harsh reality is that the case isn’t the first of its kind. When the pandemic disrupted supply chains, human rights groups began advocating for the rights of thousands of factory workers forced to work in unsafe conditions or denied wages owed to them. Worse still, is that not every case has been resolved, with workers receiving backwages.
Nike’s payout means that, in this case, fair pay has been granted to the workers in their factories overseas. It also spotlights why big brands must take responsibility for their supply chains and is a wake-up call for ethics in the apparel world.
Pandemic Fallout and Unpaid Wages
One garment or accessory can touch hundreds of hands before it reaches the customer. Along the way are the factory workers, who stitch, glue, dye, and put together pieces of the shirt or shoe you’re wearing. And, even if it’s an American brand, a lot of these factories are overseas in countries like China, Indonesia, and Thailand. It’s the latter where factory workers felt the brunt of the economic impacts of the COVID-19 pandemic. When the world shut down, they lost their jobs overnight. While Thai law calls for severance or notice, hundreds of workers were sent home empty-handed, leaving families already living paycheck-to-paycheck to scrape by.
Many garment and factory workers, mostly women, earned just enough to cover basics before the crisis. Without those wages, entire families could go hungry. Reports show that women in these factories were hit the hardest when it came to the negative economic impacts of the pandemic.
The Role of Local Advocacy Groups
Labourers’ rights groups like the Thai Labour Solidarity Committee jumped in to advocate for the factory workers and filed complaints with the local courts in 2021. Unions in Bangkok rallied too, holding protests outside factory gates and demanding that Nike audit its partners and cover shortfalls. At first, the supplier shrugged it off, claiming bankruptcy risks from the pandemic. But advocates pointed fingers at Nike, saying the brand’s code of conduct required fair treatment across their supply chain.
What started in Thai courtrooms soon hit headlines worldwide. By 2022, outlets like the Guardian and Bloomberg ran pieces on the workers’ plight, tying it to Nike’s “Just Do It” image. Advocacy networks, like the Clean Clothes Campaign, shared reports that exposed weak spots in Nike’s Thai supply chain.
The story grew legs through online petitions that snagged thousands of signatures. Investors and activists called out the delay, asking why a company worth billions let wages sit unpaid while poking around Nike’s books in 2023. Funds focused on ESG (environment, social, and good governance) sent letters demanding answers.
These efforts lit a spark. Workers shared photos of empty fridges and medical bills on social media, pulling in more support. The push showed how local voices can challenge even global giants to make a change.
This case turned into a poster child for supply chain transparency, where brands promise ethics but deliver slowly.
Nike’s Resolution Timeline
Eventually, Nike mediators met union reps in Thailand. But there was a holdup to compensating workers- suppliers claimed they lacked cash, while Nike argued it wasn’t directly liable under contracts. Workers pushed back, saying Nike’s influence made it responsible.
As legal battles dragged on, it was Nike’s own policies on fair labor that finally tipped the scales. By mid-2025, a deal emerged, and it was reported that Nike would compensate the 3,000+ Thai workers.
This Nike case sets a bar for brands’ accountability across their supply chain. It stresses the importance of regular audits and ensuring that factories meet global and local standards for labourers’ rights. As consumers, we can demand transparency from brands through reports about their factories to ensure that ethical claims have substantiated evidence of being met.
Fairness shouldn’t be an afterthought. Brands must work to shape an industry that values people over profits.