After months of refusing to pay severance to over 1,500 Honduran workers, Nike has agreed to pay $1.54 million in workers’ compensation funds.  The 1,500 workers were owed approximately $2.6 million according to Honduran laws after they were abruptly laid off from their jobs when the Choloma and San Pedro Sula Nike factories were shut down.  The factories closed in January 2009.

Nike had initially tried to place payment responsibility on the workers’ subcontractors, Vision Tex and Hugger, however they recently gave in to pressure from university and student anti-sweatshop groups.

The $1.54 million will be divided between the workers based on length of service and workers’ earnings.  Also, Nike will be paying for enrollment and one year of coverage in Honduras’ national healthcare program.

If you or someone you love is seeking workers’ compensation, contact the Pennsylvania workers’ compensation attorneys of Lowenthal & Abrams, P.C. at 800-876-LAWYER to learn more about your rights.