Penn State announced today that it has restored its contract with Adidas, but only after Adidas agreed to pay $1.8 million dollars in severance to workers at its infamous Indonesian plant.
After students belonging to the United Students Against Sweatshops protested over Adidas’ alleged violations of human rights, President Rodney Erickson decided to suspend Penn State’s contract with Adidas on March 13.
“This positive result has come, in part, thanks to the diligent and commendable effort of Penn State students, faculty and community members, who continue to demand fairness for workers in the garment industry around the world,” said Damon Sims, Vice President for Student Affairs, in a release.
President Erickson said at the time of the suspension that he would offer 60 days for Adidas to pay the $1.8 million dollars owed in severance pay to 2,600 workers in Indonesia after Adidas closed a factory in January 2011.
“We are pleased that Adidas has recognized the former workers’ plight, heard our concerns, and the concerns of others,” President Erickson said. “Adidas has resolved the issues associated with the factory closure and its impact on the affected workers. Though Penn State’s influence in the global garment industry is admittedly limited, we will continue to work together, as a University community, to help ensure that the workers who produce apparel in our name do so under fair conditions and with fair compensation.”
Penn State was one of 17 colleges to suspend its contract with Adidas. Adidas took in only $6,800 dollars in royalties from Penn State in the 2011-2012 fiscal year.