15 September, 2010
Following an international solidarity campaign, Nike has agreed to pay US$1.5 million to a relief fund for the former employees of two of its Honduran suppliers, Hugger de Honduras and Vision Tex, which closed plants in the Central American country without notice and without paying workers any of the legally-mandated severance payments due them.
Both factories closed in mid-January 2009, without severance payments to approximately 1,800 workers and estimated to total some US$2 million. In addition, Visions Tex failed to pay monies it had committed to paying in December 2008 following a strike, which included the legal entitlement to an annual bonus. The closure occurred just after the formation of a union at the factory.
The union representing the workers, the Central General de Trabajadores de Honduras (CGT), the Worker Rights Consortium and the Solidarity Center of the US will jointly oversee the administration of the fund. According to a joint press release by Nike and the CGT, workers will also receive a year’s access to the health care system, training, and priority hiring.
This groundbreaking agreement represents a significant step forward in the corporate social responsibility debate, with a major multinational company recognising that it must ensure decent working conditions, and the application of national legislation and international labour standards, for all those from whose labour it profits.