Without “significant progress” in resolving an ongoing labor dispute in Honduras, Cornell University said it will end its licensing agreement with Nike by the close of the year. The Ivy League school would become the second university after the University of Wisconsin to cancel its contract with Nike over a contractor's treatment of workers in Honduras.
As reported, labor groups claim more than 1,800 employees didn't receive more than $2 million in severance that they were due when two factories – — Vision Tex and Hugger de Honduras – in Honduras were closed in January 2009. Nike at one point subcontracted apparel production from the facilities.
The decision was issued by Cornell University President David Skorton in an internal letter dated June 28 to university's Licensing Oversight Committee, which recommended the contract be severed.
“I have made the decision to allow the licensing agreement to run through its expiration date of December 31, 2010, at which point I will allow our agreement to expire unless significant progress is made,” Skorton wrote. “I am doing this to allow Nike time to accelerate discussions I understand are underway between the company and union representatives acting on behalf of the displaced workers and to become more assertive in its efforts to remediate the Codes of Conduct violations.”
While Nike has offered training and vocational programs, the company has said the payments are the responsibility of the subcontractors. Cornell's oversight committee said it holds licensees responsible for the actions of subcontractors.
In response to Cornell's decision, Nike in a statement said it is working to resolve the issue. “Nike is very concerned for the affected workers of Vision Tex and Hugger and continues discussions with key stakeholders on this matter,” the statement read. “In addition, we are in direct discussions with Cornell on our ongoing efforts in support of the workers in Honduras.”
