University of Wisconsin cuts ties with Nike over labor concerns - WAOW - Newsline 9, Wausau News, Weather, Sports

University of Wisconsin cuts ties with Nike over labor concerns

MADISON (AP) -- The University of Wisconsin-Madison is cutting ties with Nike because the company has failed to address its concerns related to the closing of two factories in Honduras.

Chancellor Biddy Martin said Friday the shoe maker has not developed "meaningful ways of addressing the plight of displaced workers and their families in Honduras" or plans to address similar situations in the future.

Workers at two factories that were under contract to produce Nike apparel have not received severance after they were abruptly closed in January 2009.

Nike did not own the factories in question, but UW-Madison's code of conduct makes companies licensed to use its logos responsible for the actions of subcontractors.

The Nike deal generated a total of $49,000 in royalties for the university last year.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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