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The University is notifying licensed vendors making products bearing the
school logo of a Nov. 15 start date to begin meeting labor code requirements as
new contracts come due for renewal.
The letter is part of the ongoing process to ensure that merchandise carrying
Carolina's name or logo is manufactured under fair working conditions, campus
officials said.
The University has instructed its licensing agent, Collegiate Licensing Co.
(CLC) in Atlanta, to notify by letter approximately 585 licensed vendors. Most
contracts come up for renewal annually on dates that vary during the calendar
year.
The University also sent licensees a July letter informing them it had adopted
the CLC Code of Conduct and other measures, as well as of plans to alter new
contract terms.
This month's notification to vendors was among several recommendations from
the Licensing Labor Code Advisory Committee -- comprised of students, faculty
and administrators -- that were adopted in April by then Acting Chancellor
William O. McCoy. Other recommendations endorsed then included full public
disclosure of the locations of facilities manufacturing Carolina products,
independent monitoring of production facilities, and, when the term is defined,
a living wage for employees at those sites.
Beginning Nov. 15, licensed vendors renewing contracts will be required to
comply with the terms of the CLC code. In addition, they must either join the
Fair Labor Association (FLA) -- a non-profit organization made up of
corporations, universities and non-governmental organizations -- as a
participating company or have all manufacturing sites run by them or
subcontractors conform to FLA standards and certified monitoring, according to
the University letter.
Regarding public disclosure, the University has set a March 31, 2000, target
date for developing a formal process to address complaints about code
violations, the letter said. When that process is in place, all licensees must
provide Carolina with the names and addresses of all subcontractors that will
make Carolina-licensed products so that the information can become public.
Effective dates for this requirement will depend upon individual contract
renewal schedules.
The University's approach in moving forward must be balanced, fair-minded and
cost-effective, said McCoy, who returned as interim chancellor in July. "We
wish to give licensees sufficient lead time to bring their work sites in
compliance with the CLC code," he said. "In addition, linking code adherence
with contract renewals will facilitate typical business planning cycles.
"At the same time, however, we want to ensure that our expectations are clear
regarding meeting the terms of the CLC code and the University's new
policies."
Because some licensing committee members expressed serious concerns about
joining FLA during discussions in May, the panel agreed on a two-pronged
approach that would include an alternative action, said Rutledge Tufts,
committee co-chair and a member of the executive committee of the University
Advisory Council, comprised of FLA-member campuses.
First, the licensing committee agreed to join FLA for at least one year and
seek to guide its evolution in a way that would ultimately meet the
University's requirements, Tufts said. Carolina is among 118 colleges and
universities -- five of which are in North Carolina -- that are FLA members.
Recent modifications to FLA's charter have strengthened its ability to deal
with full, public disclosure of manufacturing sites, independent monitoring and
-- when a definition emerges -- setting a living wage standard, he said.
Another key benefit of working with the FLA is to spread out the costs of these
complicated tasks among members, Tufts added.
Second, the licensing panel decided in May to start a university-sponsored
pilot program to offer vendors practical guidelines based on actual case
studies, Tufts said. The pilot program concept was another recommendation
originally suggested by the committee in April and endorsed by McCoy.
CLC, the University agent, has enlisted Verite, a non-profit labor code
monitoring group, to carry out the project. Interest among potential partner
campuses has been strong, Tufts said. The project will show licensees how to
implement the code properly and bring work sites into compliance, he said. An
independent monitoring agent would visit plant sites and work with management
and employees.
"We think this project could prove invaluable to manufacturers and
subcontractors in working through the practical business issues that are
involved with these complex issues," Tufts said. "We see this as a win-win
situation for both the licensees and the University in working toward the goal
of verifiable, fair working conditions."
In the July letter to licensees, the University also cited the pilot project
and sought input.
Carolina ranks among the leading universities worldwide in sales of products
bearing its name. Sales totaled about $75 million in 1998. Carolina received
some $2.7 million on royalties from such sales in 1998. Seventy-five percent of
those funds go to scholarships and financial aid; the rest go to the athletics
department.
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