Purdue Uni reviews allegations about two Nike contractors

09 Dec '09

4 min read

"From Nike's point of view, the company worked in good faith with its primary contractors, giving them significant advance notice that it would terminate its relationship with them," Almond said. "At the time of the closing, the factories were producing brands unrelated to Nike. Information provided by the Worker Rights Consortium contradicts some of Nike's findings, so we are seeking more information from Nike."

The Worker Rights Consortium and the Fair Labor Association - the two watchdog groups of which Purdue is a member - also are not in agreement. The WRC has reported that Nike is in violation of university labor standards. FLA, on the other hand, has taken no position. The Purdue Organization for Labor Equality has accused the FLA of a conflict of interest.

"Purdue appreciates the WRC and student Purdue Organization for Labor Equality for bringing these allegations to our attention," Almond said. "We expect to make our decision by the end of the year." Purdue grants licenses to manufacturers of logo-bearing merchandise under a standard licensing agreement that requires licensees to pay the university royalty based on the wholesale price of the goods. Purdue's projected total revenue is just under $1 million this fiscal year. All revenue beyond administrative costs is divided between athletic scholarships and the general scholarship fund.

Purdue University

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