University pursues Hermosa closure

UW-Madison’s Labor Licensing Policy Committee (LLPC) recently hosted representatives of the adidas Group and the Workers Rights Consortium (WRC) in an effort to bring closure to issues related to former workers of Hermosa Manufacturing.

During the past year, the university has engaged in continuing discussions with Gregg Nebel, director of Social and Environmental Affairs for adidas in an effort to resolve outstanding issues of back pay and new employment for former workers of the now-closed Hermosa, an apparel producer located in Apopa, El Salvador.

When the factory, which contracted with adidas between 2000-02, was closed in 2005, 260 workers were dismissed without receiving $800,000 in back pay or severance.

During its time contracting with Hermosa, adidas paid its obligations to workers, but the funds were embezzled by the local factory owner, who is being prosecuted in El Salvador. Additionally, the 63 workers who associated with a union at the plant may have been put on a “black list” for their activism and denied new employment in the region.

As a result the April 4 meeting, the LLPC will recommend to Chancellor John Wiley that the university pursue a new set of benchmarks with adidas. The agreement would ensure long-term jobs for 10 of the former Hermosa workers by June 1 and another 10 by Sept. 1.

For more information, visit http://www.news.wisc.edu/laborlicensing/.