Monday, Nike Inc. announced plans to pay $1.54 million in workers’ compensation to 1,500 Honduran workers who were suddenly laid off last year.  In January 2009, workers at the Choloma and San Pedro Sula factories were surprised when the factories were closed without notice.

Nike’s decision comes after months of pressure from anti-sweatshop university and student groups.  Initially, Nike had refused to pay any workers’ compensation or severance claiming that it was the responsibility of the workers’ subcontractors, Vision Tex and Hugger.

The $1.54 million will be distributed between the 1,500 workers based on length of service and earnings.  Nike will also cover the cost of enrolling the workers in Honduras’ national health care program for one year.

While some workers’ compensation advocates are praising Nike’s decision, others believe the workers’ are still owed millions in severance payments.

If you or someone you love is seeking workers’ compensation, contact the Champaign workers’ compensation lawyers of Thomas A. Bruno & Associates at 217-328-6000 to learn more about your rights.