'No' to New Era Awaits Approval From 3 on LLCAC

Committee members want the major sports apparel manufacturer to revise its contract with employees before UNC will reinstate its contract, worth $900,000 in retail value.

But the recommendation is not final until three absent committee members meet to discuss the issue, said Rut Tufts, LLCAC co-chairman and UNC's director of trademarks and licensing.

In a meeting Tuesday, Tufts, committee Co-chairman Jim Peacock and four other committee members recommended that a letter expressing UNC's concern should be sent to New Era.

Tufts said he hopes to hear from the three other committee members later this week.

New Era was found in violation of labor codes in August 2001 after an investigation at its Derby, N.Y., factory by the Worker Rights Consortium, a labor rights watchdog group.

UNC asked New Era to respond to these allegations by January 2002, but New Era didn't, resulting in the termination of its contract.

New Era finally responded to the allegations last month and asked that its contract be reinstated. The WRC also stated in a follow-up report this month that New Era is now in compliance with labor codes. New Era representatives could not be reached for comment Tuesday.

The letter that the committee might draft will ask New Era to change the wording of its contract with employees, which bans them from talking with universities and third parties.

Many contracts prohibit worker strikes, but it is unusual to name groups an employee cannot talk to without being subject to termination, Tufts said.

In the meantime, the committee plans to begin reviewing the paperwork received from New Era two weeks ago in response to the allegations.

A summary report of this information shows that New Era has made positive changes in the last year after they began to negotiate with unions and addressed health and safety issues.

Graduate student Alexandra Zapata, a committee member who attended Tuesday's meeting, was concerned with the length of time New Era took in responding to the allegations last year. She said it reflected a lack of quality and commitment in the company's behavior.

Other committee members expressed similar concerns about New Era's motivations.

Committee member Jack Evans, a professor in the Kenan-Flagler Business School, voiced his concern with the massive amount of paperwork New Era sent in response to LLCAC's questions. "We don't know whether they are trying to beat us down by the pound or whether it is substantive information," he said.

Evans said the company needs to convince the committee that it is working to change the language in the contract.

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