On Monday, Nike Inc. announced plans to pay $1.54 million in workers’ compensation funds to over 1,500 Honduran workers who were suddenly laid off last year when the Choloma and San Pedro Sula factories were shut down without notice.  Nike had hired the two factories to produce Nike apparel.  Under Honduras law, the workers were owed $2.6 million in severance after the factories closed.

Initially, Nike had refused to pay any compensation or severance to the laid off workers, believing that it was the responsibility of their subcontractors, Hugger and Vision Tex.  However, after pressure from university and student anti-sweatshop groups, Nike Inc. decided to make a deal with the workers’ union Central General de Trabajadores de Honduras.

Nike will also cover the cost of enrolling the laid off workers in Honduras’ national health care program for one year.

If you or someone you love is seeking workers’ compensation, contact the Raleigh workers’ compensation lawyers of Scudder & Hedrick PLLC at 919-851-3311 to learn more about your rights.