Nike announced an agreement to pay $1.5 million to help workers in Honduras who lost their jobs when two subcontractors closed their factories. Central General de Trabajadores de Honduras (CGT) represented the former employees of the Nike contract supplier factories.
The agreement comes after several universities and a nationwide group, United Students Against Sweatshops, held campaigns to encourage the company to provide severance pay to the laid-off workers in Honduras.
In a press release, Nike said the $1.5 million will go towards helping “improve the lives of workers affected by the Hugger and Vision Tex factory closures in Honduras.” In addition, Nike offered to work with Honduran suppliers to offer job training programs to workers affected by the factory closings.
“Nike will also cover worker’s enrollment in the Honduran Institute of Social Security (IHSS) to obtain health care coverage for a year or until they find new employment, whichever comes first,” says the company.