Committee To Review New Era Contract

In January, UNC decided not to renew New Era Cap Company's contract -- worth $900,000 in retail value -- after it failed to respond to allegations of unfair labor practices.

It was the first time UNC ever ended a contract with a licensing company because of labor violations.

Since then, New Era has made positive efforts to change practices at the Derby, N.Y., factory in question, according to a report by the Worker Rights Consortium. The WRC is a labor rights watchdog group of which UNC is a member.

But Rut Tufts, UNC director of trademarks and licensing, said that until a glaring violation of workers' rights is removed from New Era's contract with its employees, UNC won't even look at the its improvements.

The N.Y. factory management and an employees' labor union have signed a contract that doesn't allow workers to talk with third parties such as the WRC and UNC.

The wording of the contract surprised and worried Tufts, prompting him to ask UNC's Licensing Labor Code Advisory Committee to address this problem before any consideration is given to reinstating New Era's contract. New Era could not be reached for comment Monday.

Tufts said the committee probably will require that New Era change the gag restriction placed on the workers and ask that a special effort is made to allow the workers to feel comfortable voicing concerns.

The committee, which advises what companies should be licensed to manufacture UNC products, does not meet on a regular basis.

But when problems with licensing companies arise, such as the violations at New Era, it meets to make recommendations.

The committee last convened in spring 2001 to discuss workers' rights violations at the Kukdong Nike factory in Atlixco, Mexico.

In situations such as Kukdong or Derby, UNC usually uses its position to remedy the situation instead of just terminating the contract.

"We suspect that all of our factories have labor code violations," Tufts said.

The issue, then, is not whether they exist but what the companies are doing to fix the problems, Tufts continued. "The idea is at first, 'Let's try to fix it.' If in the end that doesn't happen, we'll have to try to take a stronger measure."

UNC took that measure in January when it effectively terminated the contract with New Era after it failed to respond to the allegations.

As one of New Era's biggest licensees, losing UNC is a big deal, Tufts said, explaining the company's response and request to be reinstated. "We're not trying to turn licenses down. We're trying to find licenses who will carry out best practices and award contracts to them."

Bob Knight, a LLCAC member who was briefed on the situation at a meeting of some committee members late last week, said he expects the committee to continue to uphold factory workers' rights.

"UNC has really taken a leadership position in making sure that collegiate licensing and apparel is living up to the mandate of working conditions."

The University Editor can be reached at udesk@unc.edu.