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President reaffirms longstanding commitment to improved labor conditions for apparel workers

In a statement on the University's commitment to improving labor conditions for apparel workers around the world, Dr. Spanier has outlined the University's significant commitment to that cause.

Penn State has played an instrumental role in the development of the first code of conduct for overseas manufacturing plants, and is currently a member of the Fair Labor Association (FLA) and Worker's Rights Consortium (WRC). The results of the University's involvement over the past eight years include requiring all Penn State licensees adhere to a labor code of conduct, belong to the FLA monitoring program and participate in resolving any work place issues identified by either the FLA or the WRC.

The University will continue to review all aspects of the anti-sweatshop environment and efforts to eliminate adverse labor conditions, to include the review and consideration of any new ideas -- such as the proposed Designated Supplier Program -- in collaboration with the FLA and WRC. Following is the full statement:
Graham B. Spanier
April 06, 2006

Penn State has been involved since the initial stages of the movement to eliminate sweatshop labor in the production of merchandise bearing the University's marks and symbols. The University played an instrumental role in the development of the first code of conduct for overseas manufacturing plants and was one of the founding partners of the Global Alliance for Workers and Communities, one of the initial international efforts to provide a partnership of business, public and nonprofit organizations dedicated to assessing and improving conditions in overseas factories and communities. This unique initiative included the direct involvement of the workers themselves.

In 1999, the University became an early member of the Fair Labor Association (FLA), a partnership between leading universities and manufacturers that is dedicated to creating safer and better working conditions for the people who manufacture apparel. In 2000, a University-wide advisory committee of students, faculty and administrators conducted a thorough review of the University's efforts and endorsed Penn State's membership in both the Global Alliance and the FLA.

At the time that the Penn State Advisory Committee on Apparel Manufacturing recommended the continued affiliation with FLA, it also recommended against joining a third organization that was then organizing called the Worker's Rights Consortium (WRC), but urged the University to monitor the WRC's progress as it established its operation, in the event that a later affiliation would be appropriate.

Earlier this year, the University administration concluded that progress by the WRC warranted Penn State entering into an affiliation agreement with the WRC. The University thus now belongs to each of the major organizations that are committed to working with colleges and universities to improve working conditions in overseas plants.

The resulting process, which has been developed over the past eight years, requires that all Penn State licensees adhere to a labor code of conduct, belong to the FLA monitoring program and participate in resolving any work place issues identified by either the FLA or the WRC.

By belonging to both the WRC and the FLA, Penn State hopes that, working cooperatively, the two organizations can accomplish more together than either could alone.

Recently a group of Penn State students issued a "demand" that the University commit to another anti-sweatshop process called the Designated Supplier Program (DSP), which would bar the manufacture of apparel in any foreign plant that is not unionized and paying a "living wage." The proposal, which focuses on collegiate licensed apparel, envisions that university licensees be allowed to use only factories approved by the WRC and that those licensees will pay higher prices to satisfy university requirements.

There are a number of issues needing further clarification. Details are scarce regarding the production capacity needed to satisfy the collegiate licensee manufacturing demand. Given that collegiate licensed apparel is such a small part of the apparel industry, it is unclear what the impact could be on factory workers at factories that are not approved by the WRC. Some experts are concerned that the proposal would waste the remediation efforts made over an extended period of time in existing factories.

Moreover, there is concern about the closure of factories and the massive loss of jobs in countries that do not qualify under a new standard. The concept of a "living wage" has long been discussed, but remains elusive in actual practice. It is unclear how such requirements would apply in countries that do not allow for labor unions. There are long-standing historical divisions in our country on the question of whether Americans should be dictating issues surrounding collective bargaining and wage policy in other countries. Anti-trust issues are relevant in any business arrangement that affects competition in the marketplace, and there are differing legal opinions about such matters.

Seeking clarity on these issues, the University has been involved in discussions with other universities, licensees, the WRC, and the FLA to examine the details and discuss the potential of the DSP. Students from USAS have shared statements and news reports that also require consideration. As it has previously, the University will review all aspects of the anti-sweatshop environment, consider the positions on the DSP from peer AAU and NASULGC universities, examine the position of licensees and factories, study legal implications, and determine if adoption of the DSP is feasible, desirable and will indeed result in a broader improvement of working conditions in factories that produce apparel.

The University has been a national leader in this effort and will continue to work closely with its partners at the WRC and the FLA to champion the best possible conditions for workers.
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