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The Central General de Trabajadores de Honduras (CGT) and Nike announced a ground-breaking agreement on July 26 that will provide a US$1.5 million fund for workers in Honduras that formerly produced Nike apparel.

According to a press release from Nike and the CGT, workers will also receive a year’s access to the health care system, training and priority hiring. Read the CGT/Nike news release.

Over 2,000 workers at the Hugger and Vision Tex factories were laid off last year, leaving them unemployed and owed over US$2 million in unpaid wages and severance pay.

The agreement comes after intense pressure was put on Nike by a student-led campaign that had convinced some US universities to end lucrative licensing agreements with Nike.