MADISON, Wis. -- Wisconsin canceled its licensing agreement with Nike Inc. on Friday, becoming the first university to take that step over concerns about the company's treatment of workers in Honduras.
Chancellor Biddy Martin said Nike hasn't done enough to help workers collect severance payments they are owed at two factories that abruptly closed last year.
"Nike has not developed, and does not intend to develop, meaningful ways of addressing the plight of displaced workers and their families in Honduras," Martin said. "It has not presented clear long-range plans to prevent or respond to similar problems in the future. For this combination of reasons, we have decided to end our relationship for now."
Nike expressed disappointment with the university's decision in a statement released Friday night, while noting the factories were operated by subcontractors. Under Nike policy, subcontractors are responsible for compensation of their employees.
Wisconsin's code of conduct requires the 500 companies that make products bearing its name or logos to take responsibility for the subcontractors' actions. Its contract with Nike generated $49,000 in royalty income for the university last year.
Badgers Cut Ties With Nike:applause:
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