After a report alleged Adidas had violated workers’ rights, Interim Chancellor David Ward announced Tuesday the University of Wisconsin will enter into a period of mediation with the company.
Ward’s announcement arose out of a situation in which a factory owner at the Adidas-subcontracted PT Kizone in Indonesia fled the factory and left more than 2,800 workers without about $3.2 million in legally-mandated severance pay.
Adidas has said it is not responsible for compensating the workers and that it has adhered to the UW code of conduct, but an investigative report issued by the Worker Rights Consortium last month indicated otherwise.
After Adidas initially responded to the report solicited from WRC, Ward released a statement expressing his concern about Adidas’ claim of no responsibility and his plans to continue his commitment to the matter.
The mediation will address the severance pay dispute, and the process is contractually required to address this type of dispute, according to a UW statement.
“I’m committed to seeing redress for the impacted workers, and I believe mediation is the most efficient and practical method to reach this goal,” Ward said in the statement.
In a statement from Adidas, the group said it has met with UW leadership to further discuss the issue. The group also said it is confident it is adhering to the spirit and letter of the UW code of conduct, and that it welcomes continued discussion with UW to explore solutions.
Student Labor Action Coalition member John Perkins said the latest step from Ward is a disappointment to him and the organization, and that he had hoped Ward would give Adidas notice before cutting ties.
“I’m disappointed to see Ward not taking the lead,” Perkins said. “It seems to me that he is trying to keep up a good public appearance when the real reason he’s not putting them on notice is the big contract we have with them.”
According to the UW statement, the mediation period is undefined but could last up to 60 days depending on the availability of the mediator. In coming days, both Adidas and the university will agree to a mediator and set a date for the mediation.
