April 9th, 2010
MADISON, Wis. - The University of Wisconsin in Madison is cutting ties with Nike because the company has failed to address its concerns related to the closing of two factories in Honduras.
Chancellor Biddy Martin said Friday the shoemaker has not developed "meaningful ways of addressing the plight of displaced workers and their families in Honduras" or plans to address similar situations in the future.
Workers at two factories that were under contract to produce Nike apparel have not received severance after they were abruptly closed in January 2009.
Nike did not own the factories, but the university'€™s code of conduct makes companies licensed to use its logos responsible for the actions of subcontractors.
The Nike deal generated $49,000 in royalties for the university last year.
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