In November, members of the Purdue Organization for Labor Equality brought the issue to the University after they learned that two factories in Honduras were in violation of the Purdue Code of Conduct for apparel licensing. The Worker Rights Consortium said the factories, which produced Nike apparel, were closed by subcontractors without warning workers. The workers were owed $2.5 million in severance pay when the factories were shut down. The equipment was liquidated, which provided the workers with a small portion of their money, but they were still owed more than $2.1 million.
The University looked into the issue as it has in the past with other breaches of conduct for apparel production.
According to a University news release, James Almond, senior vice president for business services, said there was not a code of conduct violation.
“However, we are concerned about the accuracy of Nike’s (data) reporting,” he said in a letter to the Purdue Organization for Labor Equality which was released Monday.
Almond asked Nike to update the University by March 1 concerning the steps being taken to improve the management of the factory data and from licensed partners.
According to the news release, in the letter to Nike, Almond said that “failure to effectively remediate (the data reporting system) could lead to code of conduct violation.”
The Worker Rights Consortium has acknowledged that it is debatable whether Nike is obligated to pay the workers.
“The primary responsibility for payment resides with the factory,” Almond said in the press release. “Since the bankrupt factory can’t pay, the factory’s customers were asked to pay. The customers New Holland/H.B. Sports and Liberty have paid their bills to the factory, but they have not been able to assume the factory’s responsibility for the severance pay. Because Nike has ordered product through Liberty and New Holland, Nike then was asked to help.”
The consortium asked Nike to do what it could to correct the violations. Nike claims it has made numerous attempts to bring about a resolution.
David Rosenthal, a member of POLE, said they do not agree with the ruling that Purdue made concerning the code of conduct and will take a new plan of action to ensure workers across the globe are being treated fairly.
“With this most recent failure to uphold our Code of Conduct, POLE embarks on a new plan of action, continuing our work to hold Purdue, and all of those it does business with, accountable to the standards of labor rights and economic justice outlined in our Code of Conduct,” Rosenthal wrote in an e-mail.
However, Rosenthal said POLE does agree with Almond on the importance of keeping correct data records.
“If reliable factory data is not maintained and reported regularly, it becomes impossible to establish accountability and verify violations to Purdue’s Code of Conduct. We support the University’s request for Nike to improve its reporting practices, but feel a stronger position needs to be taken to ensure compliance.”
by Andrea Hammer, Purdue
One Response to "Nike “Not in Violation”"
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Again I pose the question:
How responsible were the workers for the reasons as to why the companies had to be shut down?
Were there any quality issues, ie: Good stitching, logos properly displayed, stains, undue size variance?
Or any production issues, ie: Timelly delivery, proper packaging, etc.?
Or maybe unfair, lobe sided labour laws that protect ineffective, poor performing employees and who can not be discharged with out the company paying an irrational amount of money in severance pay?
I wonder why so many companies have abandoned Honduras, and gone to other countries with the jobs that used to belong to Hondurans?
Maybe it has to do with the recurring trend of the Union leaders forgetting to protect the employers so that the employees can have be employed in the future.
So much to learn, so much to correct.
It is almost incredible that ignorance can be so corrosive at this time and age.