ZURICH, SWITZERLAND - June 22, 2026 - In November 2025, Swiss NGO Public Eye informed the Swiss premium sportswear brand On of labor rights violations, including allegations of union busting, at PT YNI – a subcontractor (Tier 2 factory) in Indonesia. In response, On immediately paused new production at the facility until full remediation has been demonstrated. Through a collaborative effort between brands and NGOs, 64 union members were successfully reinstated this April, marking a rare outcome for labor rights in the region.
Collaborative Remediation
In its recently released 2025 Impact Progress Report, On provides a transparent overview of its supply chain and working conditions. Currently, all of On's partner factories pay the legal minimum wage, and more than 80% of assessed main factories (Tier 1) meet the living wage benchmark required for a decent standard of living. Furthermore, all partners are required to comply with On’s Supplier Code of Conduct, which enforces strict standards regarding working conditions, environmental impact, employment and sourcing practices.
"We take all allegations of labor and human rights violations within our supply chain extremely seriously," said Treina Fabre, Head of Responsible Manufacturing at On. "All our suppliers are committed to our Code of Conduct, and confirmed violations result in swift, decisive action. While we are relieved these 64 union members have finally been reinstated, this case has underscored that we must do more to protect freedom of association proactively."
Public Eye’s summary of the case called the final reinstatement a major victory for the local union. Syarip Aripin, an expert at the Indonesian labor rights organization Lips, noted that he was not aware of a similar successful reinstatement case in the region, given how common union-busting practices remain.
Addressing Wage Disparities and Pricing Criticism
However, the report also scrutinizes broader worker wages across the industry, noting that certain suppliers do not yet meet living wage benchmarks. For a premium sportswear brand like On, these systemic wage disparities have drawn criticism from civil society organizations regarding the gap between product retail prices and manufacturing wages.
"We are in active discussions with our main factory partners to close this wage gap," Fabre added. "We have reinforced that transitioning to a living wage is a core expectation for our business partners, and we are committed to working collaboratively to align their progress with our global targets."
Moving Beyond Annual Auditing
Addressing questions regarding why the issue was only caught after Public Eye's intervention, Fabre acknowledged:
"This situation underscores a clear reality: relying solely on annual third-party audits is not enough. We take this as a serious signal that we need more continuous, robust oversight moving forward.”
To enhance its due diligence and prevent future blind spots, On has contracted a specialized third-party platform for continuous risk monitoring. This system will complement On's existing annual auditing process, providing a more dynamic, real-time picture of social compliance across its global supply chain.
To address these challenges holistically, On is equally committed to Responsible Purchasing Practices (RPP) and has begun internal training across its teams. As part of this commitment, the brand is evaluating the root causes of common non-compliance findings, including a comprehensive review of how its own purchasing dynamics influence supplier outcomes and behaviors.
Clarification Note: In a recent interview published by NZZ am Sonntag, On’s Founder and co-CEO mentioned compliance metrics from 2024 supply chain statistics that could be misread as current data. On wishes to clarify that the finalized data for the 2025 reporting year, which was issued as part of On’s 2025 reporting cycle recently, indicates that while 100% of Tier 1 factories meet or exceed local legal minimum wages, the specific living wage benchmark currently sits at 80.9% of assessed Tier 1 facilities.
On was born in the Swiss Alps in 2010 with the mission to ignite the human spirit through movement – a mission that still guides the brand today. Sixteen years after market launch, On delivers industry-disrupting innovation in premium footwear, apparel and accessories for high-performance running, outdoor, training, all-day activities and tennis. On’s award-winning CloudTec® and LightSpray™ innovation, purposeful design and groundbreaking strides within the circular economy have attracted a fast-growing global fan base – inspiring humans to explore, discover and Dream On.
On is present in more than 80 countries globally and engages with a digital community on www.on.com.
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