UW-Madison's Labor Licensing Policy Committee met with an Adidas representative Friday to propose a remedy for the ongoing dispute involving the company's athletic apparel contract with the university.
Gregg Nebel, director of social and environmental affairs for Adidas, told LLPC members the company continues to address issues facing former Hermosa Manufacturing workers, an Adidas factory in El Salvador until 2005.
When Hermosa shut down, it failed to give 260 workers back pay upon their dismissal. After attempting to unionize over the unpaid severance pay, 63 workers were allegedly blacklisted, leaving them unable to find employment.
Since allegations of worker abuse at Hermosa, many students have pushed Chancellor John Wiley to cut the $1.2 million per year contract with Adidas.
At the meeting, Wiley said he is frustrated with the lack of progress but does not think cutting the UW-Madison contract with Adidas is necessary.
I think we need to continue to work with our suppliers,"" Wiley said, adding he has been willing to act to resolve labor conflicts in the past.
Nebel discussed Adidas' efforts to find new employment for the 63 workers and to secure the back pay of the former employees.
""Some sort of training needs to be provided. They are lacking English language and computer skills,"" Nebel said, adding few of the blacklisted workers can pass necessary machine skills tests.
According to Nebel, the workers were given the opportunity to attend a free nine-week training session to hone these skills. Adidas is hosting a job fair with 11 factories on May 9, exclusively for the 63 blacklisted workers.
However, some LLPC members said Adidas' efforts were not enough and the company should be more aggressive in finding jobs for the workers. The committee said the longer the workers are unemployed, the harder it will be for them to secure employment on their own.
""You have to demonstrate that you're actually following through on these commitments. The burden is not on the workers, the burden is on [Adidas],"" LLPC member Patrick Barrett said to Nebel.
The committee asked Adidas to institute an incentive program for factories to hire the former Hermosa workers as well as benchmarks for hiring, giving the company until June 1 to locate stable employment for at least 10 workers and 10 more by Sept. 1. Nebel agreed to report back to the committee by the middle of this week on Adidas' reaction to the university's demands.
John Bruning, a student member of LLPC, said he doubts the athletic company will comply with the university, and unless Nebel returns with a positive solution, he said he thinks UW-Madison should cut its Adidas contract.
