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UW–Madison addresses Nike–Honduras issues

December 10, 2009

Chancellor Biddy Martin is asking Nike to act during the next four months to remedy reports of workers’ rights abuses at the factories of two of the company’s subcontractors in Honduras.

At issue is the treatment of workers at two apparel factories, Hugger de Honduras and Vision Tex. Both factories, at which it is believed that collegiately licensed apparel was produced, were shut down without notice in January.

Since then, their owners have allegedly failed to pay workers a combined total of more than $2 million in legally mandated severance and back wages. Nike is a UW–Madison licensee.

To begin to address the issue, on Nov. 3, Martin was the first college president to write to the corporation asking for a detailed remediation plan.

In November, the university’s Labor Licensing Policy Committee (LLPC) recommended that UW–Madison initiate termination of licensing agreements with Nike in response to perceived material breaches of the code of conduct.

In response, Martin wrote the committee on Dec. 4 notifying the group that she believes the company is working in good faith toward a resolution and plans to give the company four months to solve the issue or make “satisfactory, demonstrable progress” or allow the company’s relationship with the university to lapse.