The Badgers drop Nike
Though Nike Inc. has a very minor position in licensing the University of Wisconsin’s logos and trademarks, the school is officially terminating its agreement with the corporate giant because of its questionable employment practices. Specifically, the university is displeased with Nike’s treatment of its workers in Honduras where Wisconsin apparel is fabricated.
Chancellor Biddy Martin has made it clear that Nike is not doing enough to help its workers in Honduras who have been displaced after the abrupt closing of two Honduras factories. The employees were given no warning, benefits, or severance packages. When Wisconsin brought this to Nike’s attention, Nike failed to address the issue and failed to present future strategy to avoid similar situations. Nike’s poor response forced the university to end its business relationship.
Nike’s response was shifting the blame citing that under Nike policy subcontractors are responsible for compensation of their employees. And in this case, the two factories that closed in Honduras were operated by subcontractors. Furthermore, Nike affirmed that no Wisconsin gear was actually made in those two particular factories.
It is a relief to see a school stand-up to Nike; however, the contract only generated $49,000.00 in royalties for the university last year. The school made more money selling hot-dogs and sodas in one home game then it did with Nike in royalties for all of 2009. If this occurred with Adidas, the school’s main provider of athletic gear and equipment, the school’s anticipated breach would probably not resolve so quickly.
At this point, The Matador applauds the University of Wisconsin for taking the first and necessary steps to discourage poor working conditions and standing up to Nike. Hopefully, other school’s will follow in the same path as Wisconsin.
