University of Washington cuts ties with Adidas

SEATTLE -- Following months of student protests, the University of Washington has cut all business ties with Adidas over the company's failure to provide severance compensation for workers at a closed factory.

University of Washington's President Michael K. Young instructed the university's Office of Trademarks and Licensing to sever all Adidas' production of UW-licensed items, said Bob Roseth, director of UW's News and Information.

The university's advisory committee has reviewed the school's relationship with Adidas over the past year. The committee decided the company's actions were not consistent with the school's code of conduct. The primary issue, Roseth said in a statement, was Adidas' responsibility for contractors in its supply chain, and their failure to adhere to local law.  Adidas contractor P.T. Kizone failed to meet Indonesian law providing severance compensation for laid-off workers.

"Whatever technical or legal arguments Adidas may rely on to support its position in this case, the bottom line is that its handling of the situation does not meet our expectations for the humane and ethical treatment of workers who produce UW licensed products," Young said in a statement.

Adidas will have 60 days from Tuesday to sell any remaining inventory of school product.