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Nike Says Its Factory Workers Earn Nearly Double the Minimum Wage. At This Cambodian Factory, 1% Made That Much.

11 22
25.04.2025

by Rob Davis, photography by Sarahbeth Maney

This article was produced by ProPublica in partnership with The Oregonian/OregonLive. Sign up for Dispatches to get stories like this one as soon as they are published.

They are lines in the payroll ledger of a Cambodian baby clothing factory, invisible lives near the bottom of the global economy.

There is Phan Oem, 53, who says she clocked up to 76 hours a week producing clothing for Nike and other American brands, sometimes forced to work seven days a week. She says she feared being fired if she didn’t work through lunch breaks, on holidays and occasionally overnight. After 12 years spent packaging clothes, her base pay was the minimum wage: $204 a month.

There is Vat Vannak, 40, who at six months pregnant traveled by bus to join hundreds of workers who protested in the streets last year after Nike pulled out and the factory went bankrupt, leaving them unpaid. The authoritarian Cambodian government warned them to stop.

And there is the medical worker who said she saw one or two factory employees a month being sent to the hospital after falling unconscious. She said they were among eight to 10 workers a month who became too weak to work. Three other former employees said they sometimes saw two to three people go to the clinic for these issues in a single day. The reason, the medical worker said, was that they didn’t sleep much, didn’t eat enough and worked long hours.

Nike’s manufacturing apparatus in Southeast Asia has been shaken in recent weeks by news about President Donald Trump’s tariffs. Cambodia and Vietnam, mainstays of Nike’s supply chain, have faced import taxes of 49% and 46%, among the highest of any nation. Nike shares have been hammered.

The stories of workers at Cambodia’s Y&W Garment illuminate the longer-term legacy of Nike’s push into the region more than two decades ago, when labor abuses led co-founder Phil Knight to acknowledge that Nike products had become synonymous with “slave wages, forced overtime and arbitrary abuse.” The former employees’ recent experiences cast doubt on the company’s commitment to reform.

Unless tariffs force Nike to return manufacturing to the United States, labor advocates say, the company will have to offset the higher import taxes either by raising prices on its apparel or by pressuring its foreign factories for greater productivity, squeezing workers and their wages.

Vat Vannak, mother of 7-month-old Bun Kakada, said that the $250 a month she earned at Y&W Garment, including overtime, left her no money for savings. Phan Oem, 53, cuts mangos to prepare a dish for her mother. Phan said she struggled to find work after Y&W Garment closed because she was considered too old.

Nike has prided itself on the story of its reinvention since the 1990s sweatshop scandal. “We’ve gone from a target of reformers to a dominant player in the factory reform movement,” Knight wrote in his 2016 memoir, “Shoe Dog.”

The company has worked to convince consumers that it is improving the lives of its factory workers, not exploiting them. It became the first major apparel brand to disclose the names and locations of its suppliers. It established a written code that requires its suppliers to create a safe, healthy workplace, prohibit forced overtime and honor workers’ right to form unions. The company reports annually about its progress. In Nike’s marketing materials, contract factory workers are often smiling.

A key tentpole of Nike’s claims is that its suppliers pay competitive wages. Nike says contract factory workers for whom it has data now earn an average of 1.9 times their local minimum wage, without counting overtime.

Scrutinizing that claim is extraordinarily difficult. Nike acknowledges that the analysis omits more than a third of the 1.1 million people who make its sneakers and apparel worldwide. Nike says its focus in collecting wage data has been on its biggest suppliers. It hasn’t said which of its 37 producing countries are included.

ProPublica obtained a rare view of wages paid to the factory workers who produce Nike clothing: a highly detailed payroll list for 3,720 employees at Cambodia’s Y&W Garment. Covering earnings from longtime managers down to freshly hired 18-year-old sewing machine operators, the spreadsheet shows the workforce falling far short of the amount Nike says its factory workers typically earn.

While Nike says contract factory workers for which it has data earn 1.9 times their local minimum wage, a Y&W Garment factory payroll ledger shows many workers earning a base pay of $204 a month, Cambodia’s minimum wage last year. Even including bonuses and incentives, more than three-quarters of the factory’s employees earned close to the minimum wage. (Obtained by ProPublica. Highlights and redactions by ProPublica.)

Just 41 people, or 1% of the Y&W workforce, earned 1.9 times the local minimum wage of about $1 per hour — even when counting bonuses and incentives. These higher-paid employees included accountants, supervisors and a human resources manager.

Nike didn’t answer specific questions about ProPublica’s findings, including whether it dropped Y&W as a supplier because of any violations of its code of conduct.

In a statement, Nike said its code sets clear expectations for suppliers and that it “is committed to ethical and responsible manufacturing.”

“We build........

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