In a report released on Monday Community Aid Abroad-Oxfam (CAAO) said the sports manufacturer was failing to protect workers rights at Indonesian factories contracted to make its training shoes and paying them less than a living wage.
In a report released on Monday Community Aid Abroad-Oxfam (CAAO) said the sports manufacturer was failing to protect workers rights at Indonesian factories contracted to make its training shoes and paying them less than a living wage.
The CAAO's report documents cases of intimidation and harassment of women and union workers which it says are regular occurrences at Nike's Indonesian suppliers.
The group said athletes considering sponsorship deals with Nike should visit the Indonesian factories to see conditions there for themselves.
'Minor reforms'
"The truth is that [there has been] only very minor and grudging reforms."
He said attempts by the US-based manufacturer to monitor the workforce had failed as the company only dealt with supervisors, not production-line workers.
According to the report, Indonesian workers received as little as $1 a day for manufacturing Nike products and were dissuaded by threats from becoming involved in union activities.
In another case the report's authors found that although female workers are legally entitled to menstrual leave, if they tried to claim it they faced a humiliating physical examination by factory doctors.
'Starvation wage'
Speaking at the launch of the report, former US professional soccer player Jim Keady told of how he had spent a month living with as Nike worker in Indonesia attempting to survive on his wage.
He said the experience had left him "hungry and exhausted".
"I can tell you it's not a great job for any human being," Keady told reporters. "It's a starvation wage."
He added that workers were "absolutely flabbergasted" when they were told how much athletes were paid for sportswear promotion deals.
'Improved conditions'
"They begged us to bring these athletes to their homes to see how they are forced to live, ... how they don't make enough money to feed their children," he said.
In a statement Nike Australia defended itself saying it had implemented a number of measures to raise age requirements and wages for workers in Indonesia, as well as ensuring improved factory conditions.
"We uphold the Olympic ideal of human dignity," the company said. "Those campaigning to eliminate sweatshops are addressing the right issue, but targeting the wrong company."
Nike is sponsoring more than 1,000 athletes at this year's Olympics and is the official provider of clothing for the Games.