Thursday, June 18Thursday, June 18The Swiss running-shoe brand On Holding AG has suspended all orders with its Indonesian sub-supplier Yihong after an investigation by the NGO Public Eye uncovered systemic labour-rights violations, including poverty wages, unlawful dismissals and harassment of trade-union members. The move, confirmed by On’s communications team to the AWP news agency on 18 June 2026, follows Public Eye’s report that workers at Yihong—on the island of Java—were paid the statutory minimum of 2.9 million Indonesian rupiah (≈ CHF 130) per month, an income Public Eye described as insufficient to cover basic living costs. The NGO also documented breaches of working-time regulations, the absence of employment contracts and the dismissal of 112 union members during a labour dispute.
On’s direct supplier, Long Rich, manufactures footwear for On, Brooks and New Balance. The Zurich-based company stated it is treating the allegations “very seriously” and has immediately halted all business with Yihong while an internal review is conducted. Public Eye’s findings, published the same day, triggered the suspension and have intensified scrutiny of labour standards across the athletic-footwear supply chain.
The controversy arrives as On faces broader questions about its sourcing practices. Earlier this month, the company launched a high-profile marketing campaign tied to its “Forever Run” sustainability pledge, yet the latest revelations underscore the gap between corporate commitments and factory-floor realities in Indonesia. Industry analysts note that wage levels in the region remain among the lowest in Asia, complicating efforts by brands to reconcile cost pressures with fair-labour standards.
Trade unions and labour-rights groups have welcomed On’s decision but called for transparent remediation and independent verification before any resumption of orders. Public Eye’s investigator, who requested anonymity, told Swissinfo that “the systemic nature of the abuses at Yihong demands structural change, not just a temporary ban.” On has not indicated a timeline for reinstating the supplier, stating only that it will work with Long Rich to ensure compliance with its code of conduct.
The episode adds to a wave of supply-chain scandals that have roiled European footwear and apparel brands in 2026, prompting renewed calls for mandatory due-diligence legislation in Switzerland and the EU.
Άσχημα τα μαντάτα για τη Μέγκαν Μαρκλ: Κινδυνεύει με ζημία 5 εκατ. δολαρίων, αν δεν πουλήσει τις μαρμελάδες της πριν λήξουν Σε μία προσπάθεια να διαθέσει τα προϊόντα του lifestyle brand της, η δούκισσα του Σάσεξ ανακοίνωσε μια νέα συνεργασία
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On suspends orders from supplier following NGO claims 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. + Get the most important news from Switzerland in your inbox The Zurich-based running shoe manufacturer is taking the allegations very seriously, the company told the AWP news agency. + Is Swiss footwear brand On getting too greedy for its own good? The report focuses on Ons 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 ...
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