Penn State Suspends Contract With Adidas Over Closure Of Indonesian Factory
STATE COLLEGE, Pa. (AP) — Penn State has suspended its licensing contract with Adidas, saying the apparel company owes 2,600 workers severance pay after they lost their jobs when an Indonesian factory closed.
The university says the suspension will last 60 days. The university says it will terminate the contract if the company doesn't pay the severance during that time.
A Penn State student group had said they would protest if the university didn't take action on the matter by Wednesday.
Penn State President Rodney Erickson informed Adidas of the suspension in a letter Wednesday to Bob Leuenberger, of Adidas Team Sport, in Iowa. Leuenberger did not respond to an email message from The Centre Daily Times.
Erickson says Adidas' actions "fall short of our expectation for fair, just and humane behavior."
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