Nike Accused of Labor Violations in Pakistan

Investors Demand Brand Sign Accord to Protect Workers

In recent news, several investors have called on Nike to sign the Pakistan Accord, an agreement that aims to protect workers' rights in the country. The investors, who manage over $1 trillion in assets, argue that Nike has a responsibility to improve labor conditions in its supply chain.

Allegations of Labor Violations

The investors' concerns stem from allegations that Nike suppliers in Pakistan have engaged in labor violations, including:

• Excessive overtime
• Low wages
• Unsafe working conditions

The Pakistan Accord

The Pakistan Accord is a legally binding agreement between brands and unions that sets out enforceable standards for worker safety, wages, and working hours. The accord was developed in response to the 2013 Rana Plaza factory collapse in Bangladesh, which killed over 1,100 people.

Nike's Response

Nike has not yet publicly responded to the investors' demands. However, the company has a history of working with NGOs and labor unions to improve labor conditions in its supply chain.

Investors' Pressure

The investors' pressure on Nike is a sign of growing investor concern about labor rights in the fashion industry. In recent years, several major brands have been accused of labor violations in their supply chains. As a result, investors are increasingly demanding that companies take steps to protect workers.

Next Steps

It remains to be seen whether Nike will sign the Pakistan Accord. However, the investors' demands are a clear indication that the company faces growing pressure to improve labor conditions in its supply chain.

Stakeholders in the fashion industry will be closely watching Nike's response to these demands. If the company fails to take action, it could face further pressure from investors and consumers.

This situation is a reminder of the importance of ethical sourcing in the fashion industry. Consumers should demand that brands take steps to protect workers in their supply chains.