After months of controversy concerning a possible ""boot"" of the apparel contract between UW-Madison and Adidas due to alleged contract violations, the company has pledged to take action.
New efforts are being implemented by the Adidas Group to help find new employment for the former workers of Hermosa Manufacturing, one of its subcontractors between 2000 and 2002.
""The reason why this conversation is important with Adidas is they're one of our licensees and they hold our sponsorship agreement with our athletic department,"" said Dawn Crim, acting special assistant to the chancellor.
The current Adidas contract, which pays for uniforms and athletic equipment, runs through 2011 and is worth approximately $1.2 million per year. As part of the contract, Adidas agreed to a code of conduct with the university regarding the treatment of workers.
""Adidas has been a very responsible licensee in terms of providing us unprecedented access to their books regarding any questions we might have about factories or how apparel is handled in their company,"" Crim said.
When the Hermosa factory located in El Salvador closed in 2005, 260 workers were dismissed without receiving approximately $825,000 in back pay.
""All licensees had paid the money due to the factory—the factory owner absconded with the money,"" said Crim, who traveled to El Salvador in the spring to asses the situation. ""When the plant closed in 2005 there was no severance and back wages for the workers.""
During the spring 2007 semester, Chancellor John Wiley and other Labor Licensing Policy Committee members were engaged in direct communication with the company to resolve the issue in a timely manner.
""We, along with many other campuses around the country, have been working with our licensees—for us Adidas—to encourage them to try and assist in recouping the back wages and severance for the workers,"" Crim said of the university's actions.
She added that the university has asked Adidas to try to rehire the former Hermosa workers within the company's nearby factories.
""We have asked them to go a step further by insuring that the factories they deal with do not allow any type of discriminating actions against workers,"" she said.
Adidas has since released their plan to support the workers.
""We remain committed to pursuing the legal entitlements for which the former Hermosa workers have a constitutional right and we are engaged to that end with governments and civil society in El Salvador and the United States,"" the Adidas Group said in a company statement.
Crim said in the coming months, the university will let Adidas' plan take its course.
""We are pleased that Adidas has taken these additional steps to try and make the workers whole,"" Crim said. ""I would say there is progress being made.""
She said the university will be communicating with Adidas and LLPC members during the summer for progress reports.
To stay updated throughout the summer go to www.news.wisc.edu/laborlicensing.
