July 26, 2010
Nike’s actions resolve all outstanding issues, UW president says
The agreement reached today between Nike, Inc., and former workers at two Honduran apparel factories resolves all issues that had been raised by the UW’s Advisory Committee on Trademarks and Licensing, paving the way for renewal of the University’s contract with the apparel company, says UW President Mark Emmert.
Nike announced Monday that it will contribute $1.54 million to a workers’ relief fund, to be administered by the group representing the former employees, the Solidarity Center and the Worker Rights Consortium. The fund will be supervised by a professor at Cornell University and distributed to roughly 1,500 eligible workers.
“We are delighted at this outcome,” says Emmert. “More than taking responsibility for correcting the violations of its subcontractors, Nike’s actions chart a responsible course for its competitors to follow in similar situations.”
Two Nike subcontractor factories in Honduras Hugger and Vision Tex closed in 2009 without paying the legally mandated severance to their employees.
Nike also has agreed to work with its Honduran suppliers to provide vocational training and to ensure that former workers receive priority in local hiring over the next two years. Nike also will enroll the workers in the Honduran Institute of Social Security, so that they can obtain health care coverage for a year or until they find employment, whichever comes first.
