The Daily of the University of Washington

Students ask UW to pressure Nike on severance pay issue


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Just a little more than a month ago, the UW celebrated an apparent victory for international labor rights after direct intervention brought about severance payments to almost 1,000 laid-off workers in Guatemala.


Photo by Trung Le.

UW Police Department officers negotiate with Student Labor Action Project protestors about bringing signs into Gerberding Hall yesterday.



Photo by Trung Le.

Student Labor Action Project members left a fake check in UW President Mark Emmert’s office yesterday, but he was not present. The group is asking the UW to pressure Nike to make severance payments to laid-off workers.


Yesterday, some 30 members of the Student Labor Action Project (SLAP) gathered in Red Square before entering Gerberding Hall to ask UW President Mark Emmert once again to protest poor treatment of factory workers producing UW apparel worldwide.

“Two unionized factories that produced logo apparel for the UW for Nike … shut down in January,” said SLAP member George Robertson. “And workers weren’t paid their legally owed severance pay, so $1.5 million is stilled owed to these workers.”

Nike, like all UW licensees, agrees to a code of conduct, a major stipulation of which is that workers get paid all legally mandated benefits. In Honduras, part of that is severance pay for workers when a factory closes.

“The fact that these workers have gone unpaid is a violation of that code of conduct,” Robertson said.

The first step, Robertson said, is for the UW to notify Nike that it has violated the code of conduct and not re-sign the licensing contract with the company — which is set to expire in July — until Nike has at least made a “good-faith move” in getting the workers paid.

SLAP is also trying to make sure these violations happen less frequently by having a student voice at the negotiating table with UW licensees and UW Trademarks and Licensing.

SLAP has direct contact with workers all over the world,” said SLAP member Amanda Alice. “So bringing a student voice, we would be representing workers as well as our own interests as students.”

Alice said violations, such as the Nike dispute, are a direct result of students and SLAP members not being included in the contract and negotiating process.

However, Director of UW Trademarks and Licensing Kathy Hoggan said the issue is more complicated, explaining that Nike is as powerless to get these workers paid as the UW is.

Companies like Nike work with many different factories around the world, Hoggan said, and with the amount of factories that are closing every day, it would not be economically feasible for Nike to pay the severance of every laid-off worker.

“The factory’s closed; they’re out of business because they have no money,” Hoggan said. “Who are we going to pressure? The University of Washington can’t pay; we can’t keep our own people employed. Nike can’t pay [the severance]; they can’t float the boat for the whole world.”

Hoggan praised the work of SLAP but insisted that there was nothing that could be done. Even if the university decided to threaten Nike, renewal of the contract happens automatically through the Collegiate Licensing Company, which wrote the code of conduct UW uses, if the company is in good standing. Schools can opt out of the renewal, but Nike has never been dropped from any of the approximately 100 schools it licenses with, and Nike’s next six-month contract extension is expected to go through, according to a press release from Nike.

“There’s discussions happening in big government offices all over about ‘What are we gonna do with the economy and the unemployment?’” Hoggan said. “And that’s in every country.”

Reach reporter Morgan Gard at news@dailyuw.com.


2 Comments

#1 Sean K.
(Seattle, WA | UW Community)

on May 8, 2009 at 7:01 p.m.
Report this comment

I know that SLAP has compiled some data on the revenue flows. I can certainly predict why the University of Washington is not interested in publishing them. The receive a percentage of the apparel sales (9% I believe); What does that total per annum? How is that money distributed? What is it funding - exactly? Also, how is Nike NOT in control of the production of their branded product. Are they subcontracting this oversight to another company? Has anyone at the Daily read the contracts? This would be a great opportunity for the Daily to investigate this. Would take some work. More than a couple of two minute interviews. Hope you go for it...

#2 Jeff B.
(Lawrence, MA)

on May 13, 2009 at 8:12 a.m.
Report this comment

My calculation for 40,000+ cheated Indonesian workers (2003-6) is over $30 mil. (Doson, Dong Ho Puspa, Starwin, Dong Jo, Spotec & Tae Hwa). Some of the workers were paid some small amounts & brands other than Nike would account for maybe up to half of the total.


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