Swiss Brand On Suspends Supplier After NGO Claims
Swiss sportswear company On has suspended orders from one of its sub-suppliers after allegations were raised by the NGO Public Eye regarding poor working conditions in Indonesia.
The Zurich-based running shoe brand stated that it is taking the claims very seriously and has launched a comprehensive independent investigation into the matter.
According to Public Eye, the report focuses on On’s direct supplier Long Rich and its sub-supplier Yihong, located on the island of Java. These facilities also produce footwear for other international brands including Brooks and New Balance.
The NGO alleged that many workers were paid only the statutory minimum wage of around 2.9 million Indonesian rupiah (approximately CHF130) per month, which it claims is not sufficient to meet basic living costs.
Further concerns raised in the report include violations of working time regulations, lack of employment contracts, cases of unlawful dismissals, and reported harassment at the factory level. The situation reportedly led to the dismissal of 112 trade union members, although 64 of them were later reinstated following pressure from international brands.
On confirmed that it has suspended all new orders with Yihong until the alleged breaches are addressed. The company also stated that an independent audit conducted in October 2025 did not initially detect the reported issues.
Following the new allegations, On has announced plans to strengthen its grievance mechanisms and improve cooperation with NGOs and local organisations to prevent similar issues in its supply chain.
The company also confirmed that while its suppliers currently comply with statutory minimum wage requirements, it acknowledges that in some regions of Indonesia this level is below a living wage standard.
Public Eye argued that On, as a highly profitable global brand, has the financial ability to ensure all workers in its supply chain receive a fair living wage.
Despite the controversy, On stated that more than 80% of its Tier 1 suppliers already meet living wage standards and that discussions are ongoing with Long Rich to close the remaining gap.
The case highlights ongoing global concerns about ethical supply chains in the sportswear industry and increasing pressure on brands to ensure fair labor conditions across all production levels.