School: Nike didn't address concerns

MADISON, Wis. -- The University of Wisconsin is
cutting ties with Nike because the company has failed to address
its concerns related to the closing of two factories in Honduras.

Chancellor Biddy Martin said Friday the shoemaker has not
developed "meaningful ways of addressing the plight of displaced
workers and their families in Honduras" or plans to address
similar situations in the future.

Workers at two factories that were under contract to produce
Nike apparel have not received severance after they were abruptly
closed in January 2009.

Nike did not own the factories, but the university's code of
conduct makes companies licensed to use its logos responsible for
the actions of subcontractors.

The Nike deal generated $49,000 in royalties for the university
last year.