A University of Wisconsin-Madison labor licensing committee discussed Wednesday updates to ongoing labor rights issues with companies contracted by the university, including Palermo’s and adidas.
The committee discussed the recent regional National Labor Relations Board acknowledgement that Palermo’s, a sponsor of UW Athletics, wrongfully terminated approximately nine workers’ employment. Palermo’s workers had been on strike since early this year over alleged unsafe working conditions and being fired illegally.
According to Lydia Zepeda, chair of the Labor Licensing Policy Committee, a complaint over the Palermo’s controversy has also been filed with the Worker Rights Consortium, an independent group that produces reports on whether labor conditions adhere to the university’s code of conduct.
“Given that the codes of conduct are different than labor laws, for the same act it could be in compliance with the law but be in violation with the codes of conduct,” Zepeda said.
She said if the WRC report shows Palermo’s violated the university’s code of conduct, the LLPC, which already recommended the university cut ties with the company, would discuss recommending a further response.
The LLPC also discussed the university’s ongoing lawsuit with adidas over the controversial shutdown of an adidas-contracted Indonesian factory that left nearly 2,800 workers unemployed and owed due severance in January 2011.
According to Zepeda, adidas released an argument against allowing a union representing the displaced workers to be included in the lawsuit, saying the fired adidas employees would not directly benefit from the union’s presence.
Zepeda said the union will have an opportunity to respond before the court rules on the union’s participation. She said, as a result, it will probably be months before the court rules on the lawsuit.
Also in the meeting, the committee discussed creating a Designated Supplier Program, which would consist of a list of factories that are known to provide workers with favorable labor conditions, including a living wage.
LLPC committee member Jane Collins said factories of this nature have already been identified in Central America, they just need to be made more visible.
Although it would require a lot of work, Collins said she supports identifying and archiving these factories to present to university contractors.
