Home / Knowledge / News / Purdue Uni reviews allegations about two Nike contractors
Purdue Uni reviews allegations about two Nike contractors
09
Dec '09
Purdue officials announced Wednesday (Dec. 2) that they are reviewing allegations that two factories, which supplied products to Nike contractors, did not pay severance to workers after closing factories in Honduras, in violation of Honduran law.

The university also will consider whether the contractors should take over responsibility for the severance pay."We take these licensing matters seriously and work to ascertain all the facts before making any determinations, in fairness to all parties," said James Almond, senior vice president for business services.

This Central American country has been in the throes of widespread political unrest, including a military coup in June and the just-completed presidential election. Industry there also has been seriously impacted by the global recession causing hardship for the Honduran workers.

"While all of these cases are difficult to unravel with certainty, the complaint involving Nike is more complex than most," Almond said. "What is clear is the Honduran factories have closed and only some of the severance has been paid by those companies."

A watchdog group, the Worker Rights Consortium, contends that because there are no other potential sources of funds besides the plants' customers, Nike should make every effort to get the contractors to pay the workers, Almond said. Both contractors contend they do not have a legal liability nor financial ability to pay. There also is a dispute as to whether and how much collegiate-licensed product the two factories produced. "The WRC has recommended Nike use all of its influence to compel the contractors to pay money owed by the closed factories," Almond said. "The WRC acknowledges that while it is debatable whether university licensing codes of conduct obligate a licensee like Nike to pay workers through its own resources, they contend the licensee must do whatever it reasonably can to compel contractors to do so."

In this case, while Nike and the WRC agree the matter has been discussed with the contractors, no progress has been made in getting them to pay. The Purdue Organization for Labor Equality contends Purdue should terminate its licensing contract with Nike unless the remaining dollars are paid.

The business relationships also are complex. Nike's contractors, Liberty and HB Sports/New Holland, subcontracted work to the two factories that closed in January. Nike says its records indicate that Liberty's last Nike products were completed by the end of 2007 and HB Sports' were completed in December 2008.(Nike statement). Nike also states that these subcontractors did not manufacture collegiate-licensed apparel for Nike except for a one-time order in 2007, although Nike acknowledges that collegiate license tags were found in one of the plants. Nike says the tags had been "erroneously used on blank product," not on collegiate-licensed apparel. Nike also says that one of its independent licensees doing business with one of the subcontractors incorrectly listed itself as a collegiate supplier.


Must ReadView All

EU renews GSP+ scheme for Pakistan 2 years

Apparel/Garments | On 24th Feb 2018

EU renews GSP+ scheme for Pakistan 2 years

Pakistani exporters can enjoy preferential duties on exports to the...

Surat wary of e-way bills

Textiles | On 24th Feb 2018

Surat wary of e-way bills

There is no respite for Surat’s textile manufacturers and retailers....

Retailers choose sides in Alibaba-Tencent battle in China

Apparel/Garments | On 24th Feb 2018

Retailers choose sides in Alibaba-Tencent battle in China

Two big Chinese firms— Alibaba Group Holding Ltd and Tencent Holdings ...

Interviews View All

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Top executives
Textile & apparel bodies

The decision to reduce GST on MMF yarn to 12% is transformational

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search