While Nike did not own the factories, located in Chomala and San Pedro Sula, it hired them as suppliers to produce its apparel…More from Cornell University here.

University of Wisconsin’s code of conduct requires the 500 companies that make products bearing its name or logos to take responsibility for the subcontractors’ actions. U.W.’s Chancellor, Biddy Martin, said, “We remain hopeful that Nike – which has had a positive impact on working conditions in the industry overall over the past several years – will ultimately decide that it is in everyone’s best interest to ensure that the workers receive severance or to establish a meaningful alternative plan.”

In response, Nike said that while it regretted UW’s decision, it sees the factory’s owners, Anvil and New Holland, as responsible for the compensation.

“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,” said Nike in a statement. “Hugger and Vision Tex were subcontracted factories to two factories, Anvil and New Holland, that took orders from Nike. Nike paid in full for all products ordered from Anvil and New Holland and we understand that those factories, in turn, paid in full to Vision Tex and Hugger.”