Nike Gives Back to Displaced Honduran Workers

Nike has agreed to provide more than $1.5 million in pay and benefits to 1,800 workers at two apparel factories in Honduras. Employees there lost their jobs when two subcontractors closed the factories in January 2009 and failed to pay severance. The company's action comes after several universities ended or threatened to end their licensing relationships with Nike, and as pressure was building from the nationwide group United Students Against Sweatshops.

According to The New York Times, a Nike spokeswoman says the $1.54 million is for "a worker relief fund" and not severance pay. Nike also agreed to provide vocational training and finance health coverage for laid-off workers.

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