The company is giving $1.5 million to displaced workers who were left jobless when two factories in Honduras closed, WWD reports.
The move comes after the University of Wisconsin-Madison severed its licensing contracts with Nike in protest over the company's earlier stance that it would not be responsible for any severance payments after an estimated 1,800 employees at the Nike-contracted factories were laid off in January 2009, according to the paper.
Cornell University had also reportedly threatened to cancel its contract, prompting Nike to take action.
In addition to the workers' relief fund, Nike will also reportedly pay workers' health insurance for a year or until they find a new job. It will also offer a vocational training program and give workers priority for any other jobs it may have in Honduras.
"Nike and CGT are concerned for the workers in Honduras and have agreed to take important steps to support former employees of Hugger and Vision Tex [the two shuttered factories]," Nike told WWD in a statement.
United Students Against Sweatshops, meanwhile, tells WWD that the turnaround is "an unprecedented victory."
In other retail news, Ann Taylor has tapped Naomi Watts to front its fall campaign.