Nike, Under University Pressure, Agrees to Help Workers

July 27, 2010

Nike announced Monday that together with its subsidiaries, it would provide $1.5 million and vocational training for workers who lost jobs at company suppliers in Honduras. The University of Wisconsin at Madison and Cornell University have moved to end lucrative relationships with Nike over the issue of the company's treatment of these workers. Nike has until now largely argued that it couldn't be held responsible for the actions of some of its subcontractors. A statement from Madison said that its "decision to end its licensing agreement with Nike over the treatment of Honduran factory workers has had a major, positive impact." A spokesman said that it was now possible the university could again negotiate contracts with Nike.

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