Nike Statement Regarding Vision Tex and Hugger
20 April, 2010

Nike, in conjunction with two Honduran apparel contract factories and local service providers, will be offering a training and vocational program to workers affected by the insolvency closure of two sub-contract factories last year. Nike welcomes local stakeholder and worker representative engagement to make the training program as effective as possible.

The program, which is due to begin shortly, will offer training to unemployed workers to upgrade their technical skills so they can compete for jobs, together with training in micro-enterprise development for workers who are interested in starting their own businesses.

Nike’s primary contractors are also offering priority hiring to former Hugger and Vision Tex workers as jobs become available. It is our understanding that a number of workers have already secured employment in these contract factories.

Nike is absolutely concerned for the workers in Honduras and we are deeply disappointed that the two failed sub-contract factories did not pay the workers their full severance pay. However, it remains Nike’s position that factories which directly employ workers are responsible for ensuring that their employees receive their correct entitlements and as such Nike will not be paying severance to workers that were employed by Hugger and Vision Tex.

Both factories were paid in full for the product they produced for Nike. Nike also understands that apart from a one time order for 800 units of college apparel at Vision Tex, no collegiate licensed product was made in either Vision Tex or Hugger.

Nike is also upgrading its collegiate factory disclosure processes to increase the frequency in which we report as well as undertaking a deeper review of our procedures around sub-contracting with the intention of upgrading our level of oversight.