The Labor Licensing Policy Committee announced its plan to end UW-Madison's contract with Nike Friday, saying the company failed to address several alleged labor violations in Honduras.
In December, Chancellor Biddy Martin gave Nike 120 days to address its alleged failure to pay over 1,600 workers severance pay after the sudden closure of two Nike-contracted factories in Honduras.
Nike allegedly owes these workers $2.2 million in severance pay, which is equivalent to about seven months of wages.
Nike has also been cited for its alleged failure to pay into Honduras' national health-care system, resulting in the workers' inability to access health care when needed.
Dawn Crim, special assistant to the chancellor and member of the LLPC, said Martin monitored Nike's progress over the past four months and felt the company had not made significant progress by the April 7 deadline.
She said although Nike has offered these workers job training and priority jobs in other factories, Martin believes their efforts were inadequate, and that they failed to present a clear plan to prevent similar situations from occurring in the future.
""The real solution is better conditions and workers working,"" Crim said.
UW-Madison is the first university to end its relationship with Nike over the issue, and members of the LLPC are working to encourage other universities to cut their contracts as well.
""The chancellor made a really great, move and I'm really happy she showed this leadership. I think we should support her and help her reach out to other universities,"" Daniel Cox, a UW-Madison student and Student Labor Action Coalition member, said.
Several members of SLAC, which has been encouraging Martin to cut the contract with Nike throughout the past several months, said they were thrilled with her decision.
""We should absolutely support the chancellor 100 percent she definitely made the right decision,"" Jonah Zinn, a UW-Madison sophomore and SLAC member, said.
LLPC members also held a conference call Friday to speak with several Honduran workers who lost their jobs when the factories closed.
These workers will visit UW-Madison Friday as a part of a nationwide tour to encourage other universities to cut their contracts with Nike as well.
