UW-Madison Chancellor David Ward told student leaders Monday he feared the UW System could face legal repercussions if it did not enter a period of negotiation with adidas before giving the company an ultimatum to remedy alleged labor violations within 90 days.
UW-Madison’s Labor Licensing Policy Committee recommended the university give adidas 90 days to pay workers in an Indonesian factory severance after the factory abruptly closed in 2011.
But Ward said doing so could have resulted in the company suing the UW System Board of Regents, which would jeopardize the university’s code of conduct, finances and morale.
“My worry was that it would be a problem if adidas won that case,” Ward said. “It seemed that on the basis of my last two phone conversations, they were prepared to do that.”
Ward said if the university put adidas on notice, they would eventually have to enter a period of mediation. He said by entering mediation before putting the company on notice would at least let the university know what its chances of winning a lawsuit would be.
If the university cut ties with adidas, the company would be unlikely to pay the workers, Ward said. Entering the period of mediation would allow the university to negotiate with adidas and influence the company to pay the workers.
Also at the meeting, Associated Students of Madison Diversity Committee Chair Niko Magallon presented legislation denouncing the Student Services Finance Committee’s denial of funding eligibility for the Multicultural Student Coalition, which was ultimately upheld by the Student Judiciary.
MCSC members said they felt SSFC and judiciary discriminated against the group because MCSC represents minorities on campus.
SJ Chief Justice Kate Fifield said to the best of her knowledge, the group’s ideology was never considered when determining its eligibility. She said it is important ASM committees trust each other.
“If you say that we are not capable of making funding decisions or that I or my justices are not capable of ensuring the integrity of the system, that we cannot recognize discrimination when we see it, then we might as well hand over all of the money to the administration right now,” Fifield said. “If there is no trust in our organization, then we have no purpose here.”
