Nike updates statement on confrontation at Cambodian factory

Nike Inc. late Wednesday issued an updated statement regarding an ongoing labor dispute at a Cambodian factory that makes Nike products."

Nike Inc. late Wednesday issued an updated statement regarding an ongoing labor dispute at a Cambodian factory that makes Nike products.

Matthew Kish

Staff reporter- Portland Business Journal

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Nike Inc. late Wednesday issued an updated statement regarding an ongoing labor dispute at a Cambodian factory that makes Nike products.

Also Wednesday, Reuters reported that workers continue protesting at the factory despite efforts to disperse a crowd of 3,000 workers.

Last weekend police used stun batons and riot gear to disperse the crowd. Reuters reported that a pregnant woman was pushed to the ground and lost her child. Twenty-three people were injured in the confrontation with police.

Nike on Tuesday said it was investigating what happened. It expanded its statement Thursday.

The Nike statement in full:

Nike is deeply concerned with the treatment of workers outside of a contract factory in Phnom Penh, Cambodia that makes Nike products. Better Factories Cambodia (BFC) has confirmed to Nike through an independent investigation that some workers sustained injuries during a protest in Cambodia on Monday.

As outlined in Nike's Code of Conduct, Nike requires its contract manufacturers to respect their employees' rights to freedom of association. We immediately began working with BFC and the contract manufacturer, and we have reached out to the Cambodian government, to address the need for worker safety while exercising their freedom of association rights to protest.

Workers are employed by the contract factories, not by Nike, and wages and compensation are the responsibility of the factories. It is our understanding that this factory raised its own minimum wage on May 1 and pays above the country’s minimum wage. In addition to wages, the workers are eligible for additional monthly allowances for housing, transportation and food as well as an attendance bonus.


We have been in close contact with this contract factory since last week over this issue and we will continue to monitor the situation. The factory is closed today out of concern for worker safety due to additional protests planned.

This factory is part of BFC, a program established by the ILO (International Labor Organization) and IFC (International Finance Corporation).

Matthew Kish covers banking, finance, footwear/apparel and higher education.