Big Fashion and Wall Street Cash In on Wage Theft
2
n Spring 2020, at the height of the first lockdowns and economic upheaval
around the globe from COVID-19, the Knight family, the largest shareholder
in Nike, Inc., the world’s second largest fashion company, paid themselves
$74 million in dividends on their Nike, Inc. stock, adding to a $45 billion net
worth that makes them the 25
th
wealthiest family in the world at time of
writing.
At the same time, Diah,
who prints the famous Nike swoosh onto hundreds of
gloves a day in an Indonesian factory in Nike’s supply chain, saw her hours and
salary cut in half in Spring 2020, throwing her family into a financial crisis. Nike
has 1.2 million workers in its supply chain, and seven in ten are women.
Working in Nike’s supply chain, Diah could no longer afford meat or fish as she
struggled to make ends meet for her family. She worried about the possibility
of appearing ill at work, because her factory management might require her to
take a COVID swab test, which would have cost Diah half her monthly income
at the time.
Diah was just one of the millions of garment workers in the Global South who
lost their paychecks en masse in Spring 2020. Already working for wages barely
above the poverty line, these workers were laid off by the hundreds of
thousands from factories that supply Nike and other Big Fashion companies
and faced wage theft at an unprecedented scale, from illegal layoffs and
terminations to arbitrary pay cuts, unpaid wages for hours worked, and gender
discrimination. Big fashion companies including Nike triggered this crisis when
they canceled or drastically reduced orders en masse in response to economic
uncertainty during the initial months of the COVID pandemic. According to Asia
Floor Wage Alliance’s (AFWA) 2021 report Money Heist, which reported findings
from its 2020 survey of over 2000 garment workers, Big Fashion’s factory
workers lost roughly three months’ pay on average during the first year of the
pandemic. The impact on workers, families and communities that produce
products for the global giants was profound.
Yet a year into the pandemic in 2021, as garment workers struggled to survive,
Nike announced it had made the largest profits in its history. Nike continues to
thrive — as recently as December 2022, the corporate giant enjoyed its best
quarterly revenue growth in a decade. Nike is not alone. In the fashion industry,
20 giant corporations generate 98% of the industry’s economic value, hence
the name “Big Fashion.” Big Fashion is making its highest profits in over a
decade. As we approach the pandemic’s three-year mark, Big Fashion has more
than recovered from COVID, while workers on their supply chains are still
reeling from the impacts.
In 2022, AFWA, an alliance of garment sector trade unions in South and
Southeast Asia, revisited factories from its 2020 survey to see if garment
Diah’s name has been anonymized to protect against retaliation. She is a member of an AFWA-
affiliated union in Indonesia.