On imposes a ban on orders from a sub-supplier following a Public Eye investigation
Keystone-SDA
Swiss shoe maker On has suspended orders from one of its sub-suppliers following allegations by NGO Public Eye of poor working conditions at the Indonesian company.
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The Zurich-based running shoe manufacturer is taking the allegations “very seriously”, the company told the AWP news agency.
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The report focuses on On’s direct supplier, Long Rich, and its sub-supplier, Yihong, on the island of Java, which manufacture products for On, Brooks and New Balance, amongst others.
Many workers were paid only the statutory minimum wage of 2.9 million rupiah, or just under CHF130, a month, according to Public Eye. This is not enough to live on.
At Yihong, the NGO identified breaches of working time regulations, a lack of contracts, unlawful dismissals and harassment. A dispute there reportedly led to the dismissal of 112 trade union members. However, under pressure from the shoe manufacturers, 64 of them were reinstated.
Investigation launched
On told AWP that the conditions described were “in clear contradiction” to its core values and Supplier Code of Conduct and would not be tolerated. The company has launched a comprehensive independent investigation and suspended all new orders with Yihong until the breaches have been rectified.
On has confirmed the reinstatement of 64 trade union members. Public Eye describes this as an exceptional success. The factory has also undertaken to pay back a large proportion of the lost wages.
According to On, an independent audit in October 2025 had failed to uncover the abuses. The company now intends to improve its grievance mechanisms and strengthen its dialogue with Public Eye and local organisations.
The sports brand is targeting turnover of CHF3.5 billion and a gross margin of at least 64.5% for the current year. Public Eye argues that On is highly profitable and could pay all suppliers and sub-suppliers a living wage.
The NGO also refers to On’s sustainability report, which states that statutory minimum wages often do not provide an “adequate standard of living” and that all workers in the supply chain deserve a “fair, living wage”.
On confirms that the factories mentioned in the report pay the statutory minimum wage. However, the company acknowledged that, at least in parts of Indonesia, this falls below a living wage.
Nevertheless, more than 80% of the assessed Tier 1 suppliers already meet the standard for living wages. On is in discussions with the direct supplier concerned, Long Rich, to close this gap.
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Translated from German by AI/mga
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