Oregon Public Broadcasting

Nike announced Monday that it would pay $1.5 million to a 'worker relief fund.' As Kristian Foden-Vencil reports, the money is for workers in Honduras who lost their jobs when two subcontractors closed their factories. 

Nike has been under pressure from student groups to pay the severance package because subcontractors refused.

The University of Wisconsin terminated its licensing agreement over the dispute. And Cornell warned of doing the same.

Scott Nova, director of the Workers Rights Consortium, says the Nike payment could end up being a watershed moment:

Scott Nova: "This is the first case we know of in which a major apparel brand has assumed defacto financial responsibility for its contractors labor-rights violations. And that could open the door to much more accountability on behalf of brands like Nike."

Nike stressed the money is not a severance payment, but a relief-fund donation.

The Beaverton company issued a statement saying it's concerned for the workers and will work with its Honduran suppliers to offer vocational training.

Nike also said it will cover enrollment in Honduran Social Security -- so workers can obtain health care coverage.