The termination of UW-Madison's licensing contract with New Era Cap company marks an important step in the fair labor battles UW-Madison has fought for the last few years.
The university ended the contract with New Era because the apparel company refused to comply with UW-Madison's code of conduct. The code stipulates that licensees must allow monitoring agencies to observe labor practices in factories.
Although this action does not address bad working conditions in factories, it is a move in the right direction. The best way to address poor conditions in factories would be through a lawsuit, but legal action requires the licensing contract to continue.
Suing New Era for unfair labor practices would send a stronger message, but the early termination of the contract is immediate and it shows how the university does business with licensees. Legal action could take many years and have results that would negatively impact the university.
Despite the fact that the university did not acknowledge New Era's labor conditions as a cause of the termination, New Era's actions to not allow the Worker's Rights Consortium to monitor New Era's U.S. factories elude to unfair practices at those facilities.
The university should continue to investigate licensees on their labor practices, as well as cease contracts if licensees fail to comply with UW-Madison's code of conduct.
