GARMENT unions and organisations in six countries in Asia and the United States joined forces today to demand an end to the practice of “stock buybacks.”

The practice by big fashion companies, where companies buy back their own shares, which reduces the number of shares available and makes them more valuable because of their rarity on the market, comes after years of unpaid wage claims by workers.

Some 50 organisations and their allies, Asia Floor Wage Alliance (AFWA), Global Labour Justice-International Labour Rights Forum, in Bangladesh, Cambodia, India, Indonesia, Pakistan, Sri Lanka and the US, have united to demand that sports giant Nike pay the workers in its supply chain approximately $9.3 million (£7.49m) in Covid wage claims.

In 2021, Nike increased its share buyback programmes and authorised an $18 billion (£14.51bn) buyback programme. 

With that money, workers in Nike’s supply chains could have been paid their wages 2,000 times over.

US Congressional Representative Jesus Garcia said: “Nike’s stock buyback plan is an example of why stock buybacks should be banned.”

AFWA international co-ordinator Anannya Bhattacharjee said: “Big US-based fashion companies like Nike left millions of low-wage garment workers in their supply chain across Asia in crisis after their purchasing practices during the pandemic causing massive income loss and wage theft.”