The chair of UW-Madison's primary licensing advisory committee said Monday she is unhappy with the way Chancellor David Ward decided to enter a period of mediation with Adidas, rather than give the company 90 days' notice to pay severance to its workers as the committee recommended.
Labor Licensing Policy Committee Chair Lydia Zepeda said she was surprised when she heard about the chancellor's decision.
"I had talked to him the day before and he did not mention this as a possibility at [any] point," Zepeda said.
The issue concerning adidas began Jan. 19 when a report alleged that an adidas factory, owned by PT Kizone, abruptly shut down, leaving the workers unemployed and owed severance fees. Almost two weeks later, after various demonstrations from student groups urging Ward to give adidas 90 days' notice to remedy the situation or cut ties with the company, it seemed he agreed.
"After appropriate and speedy consultation, I am inclined to give notice to Adidas that we believe it is in material breach of the terms of the Code of Conduct," Ward said in a letter.
But when Ward changed his mind, Zepeda said the LLPC should have been consulted as outlined in the committee governance document.
Ward's failure to consult the LLPC about his decision was not Zepeda's only grievance with the mediation process. She was critical of the decision to negotiate with adidas behind closed doors.
"I always prefer things to be conducted in the open," she said. "I think that transparency is one of the key factors that's needed to that [help] outcomes to occur."
Additionally, Zepeda said any agreements made during the private discussions are non-binding.
Despite Zepeda's concerns, Ward affirmed last week that his decision is the most effective way to assure the workers are paid.
"I'm committed to seeing redress for the impacted workers, and I believe mediation is the most efficient and practical method to reach this goal," Ward said in a statement. "I look forward to a positive resolution to this matter as soon as possible."
Zepeda said she has not been able to speak with Ward, who is currently in England. However, when the chancellor returns she said she would like to clarify what the mediation process is and what the chancellor is willing to give up to negotiate with adidas, who firmly refuses to pay the workers.
"Are we giving up the code of conduct? Is he hoping that this will be a way that adidas is willing to do something for the workers at PT Kizone? Because adidas has made it very clear that it won't," she said.
