Nike has agreed to compensate over 1,500 Honduran factory workers who were laid off abruptly in January 2009 when two Nike-contracted factories closed.
In addition to contributing $1.5 million to a worker relief fund, the company said in a July 26 statement that it will pay to enroll the workers and their families in the Honduran national health-care program for one year. Over the next two years, Nike will also work with its Honduran suppliers to place those affected in other Nike-contracted factories while offering vocational training programs to prepare them for these jobs.
This move has the potential to improve the company?s relations with UW-Madison. The university terminated its contract with the company last April citing concerns over more than $2 million in unpaid severance packages.