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Fact check: Nike sweatshops

Checked on June 14, 2025

1. Summary of the results

Nike's sweatshop controversy represents a complex historical issue that evolved significantly over time. In the 1990s, Nike faced severe criticism after investigations revealed poor working conditions in overseas factories, including the use of child labor - notably exposed by Life magazine's story of a 12-year-old stitching soccer balls [1]. Initially, workers were paid around 20 cents per hour in Vietnam, where 80% of the workforce was female [2]. While Nike first denied responsibility, they later acknowledged these issues and implemented various reforms [1].

2. Missing context/alternative viewpoints

Several important contextual elements need to be considered:

  • Current Conditions: While historical viral claims about 20-cent wages and 70-80 hour weeks are outdated, current conditions still raise concerns. Workers now earn between 65-90 cents per hour and typically work 60-hour weeks [3].
  • Industry-Wide Issue: This isn't exclusively a Nike problem - low wages and long hours are endemic to the entire garment industry [3].
  • Reform Efforts: Nike has implemented significant changes including:
  • A Code of Conduct for suppliers
  • Independent factory audits (both announced and unannounced)
  • Improved wages and safety measures
  • Becoming the first in their industry to release a detailed factory conditions report in 2005 [1] [4]

3. Potential misinformation/bias in the original statement

The discussion around Nike's labor practices often lacks nuance and current context:

  • Competing Narratives: While Nike emphasizes its reforms and compliance requirements [4], advocacy groups like Clean Clothes Campaign argue that the company still pays "poverty wages" and hasn't fully addressed worker exploitation [5].
  • Financial Interests: Multiple parties have stakes in this narrative:
  • Nike benefits from emphasizing their reforms and current compliance measures
  • Labor advocacy groups benefit from highlighting continuing problems
  • Competitors benefit from Nike's negative publicity
  • Workers and labor organizations benefit from continued scrutiny of working conditions
  • Timeline Confusion: Many viral claims about Nike's labor practices are based on conditions from the 1990s, which, while historically accurate, don't reflect current conditions [3]. However, this doesn't mean all labor issues have been resolved.
Want to dive deeper?
What specific labor violations have been documented in Nike factories?
How has Nike's manufacturing oversight changed since the 1990s sweatshop allegations?
What are the current working conditions in Nike supplier factories?
How do Nike's labor practices compare to other major apparel companies?
What role do third-party audits play in monitoring Nike's supply chain?