Press Releases
ITGLWF Welcomes Nike Severance Agreement for Honduran Workers
The ITGLWF has welcomed Nike’s decision to provide compensation to workers in Honduras who lost their jobs and were denied the severance payments to which they were entitled by law when their factories closed down eighteen months ago.
Nike has agreed to contribute $1.5 million to a fund administered jointly by the CGT, the Solidarity Center, and the Worker Rights Consortium. Nike will also work with its Honduran suppliers to offer vocational training programmes and to prioritise the hiring of former Hugger and Vision Tex workers as jobs become available over the next two years. In addition, Nike will cover social security coverage for workers for one year or until they find new employment.
The agreement comes after months of pressure from the ‘Nike: Pay for It’ campaign organised by United Students Against Sweatshops, which led one university to sever its relationship with Nike over the Honduran situation. The university was one of many which have included binding codes of conduct into their licensing agreements with sportswear brands.
This landmark agreement marks an important step in the efforts to force buyers to take remediation measures in cases where problems arise in the payment of severance.
