Yesterday, Nike Inc. announced their plans to pay $1.54 million in workers’ compensation to over 1,500 Honduran workers who were suddenly laid off last year when the Choloma and San Pedro Sula factories were shut down without notice.  Under Honduras law, the workers were owed $2.6 million in severance after the factories closed.

Nike has consistently refused to offer severance payments, but gave in to pressure from anti-sweatshop student and university groups to pay the workers’ compensation relief.  The money will be distributed between the laid off workers based on length of service and workers’ earnings.  They have also offered to cover the costs of enrolling the workers in Honduras’ national health care program for one year, provide job training, and give priority to the laid off workers at positions at nearby factories.

While some are praising Nike for its willingness to provide workers’ compensation, many still believe the workers are owed millions in severance payments.

If you or someone you love is seeking workers’ compensation, contact the Philadelphia workers’ compensation lawyers of Lowenthal & Abrams, P.C. at 215-238-1130 to learn more about your rights.