IU terminates contract with New Era

In response to allegations of workers' rights abuse, IU has terminated its licensing contract with the New Era Cap Company. The termination came as a result of New Era's repeated refusal to cooperate with the Workers' Rights Consortium, a labor rights watchdog that represents IU and other universities. \nPresident Myles Brand sent a letter to New Era in early March threatening to terminate the contract unless the company complied with the Workers' Rights Consortium investigation of a New Era factory in Derby, N.Y. New Era did not meet Brand's deadline for compliance.\nThe lack of responsiveness by New Era and IU's concern for the continuing disregard for labor rights prompted president Brand to terminate the contract, Vice President for Public Affairs and Government Relations Bill Stephan said.\n"There has been significant time given to New Era to make some headway, but there wasn't the progress we had hoped for," Stephan said. "There were some concerns about health and safety issues in particular, and the (sweatshop advisory committee) determined that there was some legitimacy to these concerns."\nJunior Megan Hise, member of the IU chapter of No Sweat!, said New Era has not shown respect for either its licensing contract with IU or the rights of its workers. \n"They have had ample time to comply and have given us significant reason for concern," Hise said. \nNo Sweat! represents students on the IU sweatshop advisory committee and fights for improved labor conditions worldwide. \nThe Workers' Rights Consortium and universities work in conjunction to improve labor conditions in factories where university apparel is manufactured. The consortium monitors labor conditions for universities, and universities use their licensing leverage to force improvements. \nThe consortium first released an expose of the Derby factory in August 2001, claiming that more than half of the New Era employees there had been diagnosed with a musculo-skeletal disorder. The report damned New Era for not implementing even "minimally adequate occupational health and safety protocols."\nIn a follow-up report released in February, the consortium charged New Era with evading the accusations and refusing to cooperate with further investigations.\nA meeting between the consortium and New Era has been scheduled for April 16. Assistant Vice Chancellor for Student Affairs Damon Sims is hopeful there will be a constructive dialogue. \n"We have indicated that if they do comply finally and move in the right direction, then we will reconsider our relationship with them and perhaps consider renewing the contract," Sims said. \nBut Hise doubts New Era's sincerity in addressing the workers' rights issues, calling it just another stalling ploy.\n"This is just a beginning of mediation with the company, and if they aren't willing to be cooperative, then that doesn't say much for our hope for them to remediate the serious labor rights allegations," she said. "Until the WRC says they have made significant steps and have finished their investigation, I don't think we will be renewing the contract."\nTad Segal, spokesperson for New Era, defended the company, saying the allegations of poor working conditions are "just outright not true," and that the company is committed to its workers.\nThe April 16 meeting between New Era and the Workers' Rights Consortium should satisfy IU's conditions for compliance, he said. \n"The meeting is an effort to sit down with the Derby facility, to provide a full review of working conditions and to allow the Workers' Rights Consortium to take a look for themselves that this is a well run company that respects workers," he said.\n"We hope IU will take another look," Segal said. "We've had a good relationship in the past, and we hope to continue it."\nWith the decision to terminate its licensing contract with New Era, IU joins a small group of other universities including Wisconsin, Michigan and Iowa. \nStephan said the contract was worth "several thousand dollars"