The Swiss running shoe manufacturer On is the focus of current research by the NGO Public Eye. The topic is working conditions and a union conflict in a shoe factory in Cirebon, Indonesia, which also produces for On via multi-level supplier structures.
This is primarily about the Yihong company, a sub-supplier of On’s main supplier Long Rich. There was a labor dispute there in 2025 in connection with the establishment of a union, during which 112 employees were dismissed. On and other brands involved responded by examining the allegations, temporarily suspending orders and taking part in on-site mediation discussions. The review took place as part of an NGO-supported multi-stakeholder mediation led by the Clean Clothes Campaign (CCC), together with local unions and the brands involved.
As a result, 64 of the laid-off employees were rehired. In addition, an agreement was reached between the union and the company, which, in addition to the return to work, also regulated outstanding wage payments.
The report also quotes a statement from On. On points out that it has investigated the case and taken measures as part of supply chain management, including a temporary order stop from the affected supplier. The case also led to the further development of internal review and complaint systems, particularly with regard to multi-stage supply chains.
At the same time, the NGOs involved point to structural challenges in enforcing labor standards, especially among subcontractors who are not directly integrated into contractual brand structures. Criticism also comes in view of the wage level. Although the company pays the region’s legal minimum wage of the equivalent of around 130 Swiss francs (around 139 euros) per month, according to Public Eye and CCC, this is not enough to cover basic living costs.
On the one hand, the case documents labor law conflicts in global supply chains, but on the other hand it also documents how control mechanisms can be actively used together to improve employment relationships.
Note d. Editor: FashionUnited has asked On Running for comment.