Disclosure of Factory Locations by UIUC Licensees

The University of Illinois at Urbana-Champaign asked its licensees, through the CLC, to disclose the location of all factories where merchandise bearing the University's name, symbols and insignia are manufactured. The letter from the CLC on behalf of the University appears below.

List of University of Illinois Factory Disclosures - August 2001 (pdf)

List of University of Illinois Factory Disclosures - August 2001 (excel)

TO: Licensee

FROM: Bruce Siegal,
Vice President and General Counsel

RE: License Agreement Notice - Public Disclosure of Factory Sites

DATE: November 30, 1999

As you know, collegiate institutions across the country are developing labor code of conduct standards and monitoring/verification systems designed to ensure that licensed collegiate products are produced under fair and humane working conditions. Many institutions view public disclosure of factory sites as an essential part of the process. Several licensed manufacturers have already either publicly released or stated their intention to publicly release factory site locations.

This Notice presently affects Licensees currently licensed with the CLC Member Universities referenced below. However, CLC is providing this Notice to all Licensees, including those not licensed with the above-referenced institutions, in recognition that other Member Universities will soon follow suit with similar public disclosure requirements.

The University of Arizona, Duke University, Georgetown University, the University of Michigan, University of North Carolina - Chapel Hill, St. John's University and University of Wisconsin -Madison have set forth their public disclosure requirement, as follows:

Effective January 1, 2000, the Member University requires that each Licensee disclose to the Member University or its designee the location (including factory name, contact name, address, phone number, e-mail address, products produced, and nature of business association) of each factory used in the production of all items which bear Licensed Indicia. Such information shall be updated upon change of any factory site location. The Member University reserves the right to disclose this information to third parties, without restriction as to its further distribution.

Thus, for Licensees currently licensed with respect to the above-referenced CLC Member Universities, this requirement shall be in effect as of January 1, 2000, and licensees must provide the factory site information to CLC by that date. This requirement is made pursuant to Paragraph 24 of the License Agreement, which requires Licensees to comply with guidelines, policies and/or requirements as announced by CLC.

In addition, please be aware that certain CLC Member Universities will announce additional labor code standards and monitoring/verification systems in the near future. Many have committed to the Fair Labor Association (FLA) code-monitoring program. Accordingly, CLC encourages you to begin giving serious consideration to labor code issues, if you have not already done so. As you know from prior correspondence and communications sent by CLC over the past couple of years, CLC has worked diligently with CLC Member Universities and other collegiate institutions to develop uniform labor code standards and monitoring/verification systems, and streamline the process as much as possible. CLC and the Member Universities appreciate your cooperation in achieving effective solutions to these critical labor issues.

Please forward the referenced factory site information to the attention of Deborah Moore at CLC. Please direct any questions to Bruce Siegal (via telephone or e-mail at bsiegal@clc.com), or Bill Battle (via telephone or e-mail at wrb@clc.com).

BBS/djm

Enclosure (CLC Labor Code Standards, to be implemented by certain Member Universities)

Labor Code Standards

I. Introduction: The Collegiate Licensing Company ("CLC") and the collegiate institutions represented by CLC ("Member Institutions") are each committed to conducting their business affairs in a socially responsible and ethical manner consistent with their respective educational, research and/or service missions, and to protecting and preserving the global environment. While CLC and the Member Institutions believe that Licensees share this commitment, CLC and certain Member Institutions have adopted the following Code of Conduct (the "Code") which requires that all Licensees, at a minimum, adhere to the principles set forth in the Code.

Throughout the Code the term "Licensee" shall include all persons or entities which have entered into a written "License Agreement" with CLC to manufacture "Licensed Articles" (as that term is defined in the License Agreement) bearing the names, trademarks and/or images of one or more Member Institutions. The term "Licensee" shall for purposes of the Code, and unless otherwise specified in the Code, encompass all of Licensees' contractors, subcontractors or manufacturers which produce, assemble or package finished Licensed Articles for the consumer.

II. Standards: Licensees agree to operate work places and contract with companies whosework places adhere to the standards and practices described below. CLC and the Member Institutions prefer that Licensees exceed these standards.

A. Legal Compliance: Licensees must comply with all applicable legal requirements of the country(ies) of manufacture in conducting business related to or involving the production or sale of Licensed Articles. Where there are differences or conflicts with the Code and the laws of the country(ies) of manufacture, the higher standard shall prevail, subject to the following considerations. In countries where law or practice conflicts with these labor standards, Licensees agree to consult with governmental, human rights, labor and business organizations and to take effective actions as evaluated by CLC, the applicable Member Institution(s) or their designee, and the applicable Licensee(s) to achieve the maximum possible compliance with each of these standards. Licensees further agree to refrain from any actions that would diminish the protections of these labor standards.

B. Employment Standards: Licensees shall comply with the following standards:

1. Wages and Benefits: Licensees recognize that wages are essential to meeting employees= basic needs. Licensees shall pay employees, as a floor, at least the minimum wage required by local law or the local prevailing industry wage, whichever is higher, and shall provide legally mandated benefits.1

2. Working Hours: Except in extraordinary business circumstances, hourly and/or quota-based wage employees shall (i) not be required to work more than the lesser of (a) 48 hours per week and 12 hours overtime or (b) the limits on regular and overtime hours allowed by the law of the country of manufacture or, where the laws of such country do not limit the hours of work, the regular work week in such country plus 12 hours overtime; and (ii) be entitled to at least one day off in every seven day period.

3. Overtime Compensation: In addition to their compensation for regular hours of work, hourly and/or quota-based wage employees shall be compensated for overtime hours at such a premium rate as is legally required in the country of manufacture or, in those countries where such laws do not exist, at a rate at least equal to their regular hourly compensation rate.

4. Child Labor: Licensees shall not employ any person at an age younger than 15 (or 14, where, consistent with International Labor Organization practices for developing countries, the law of the country of manufacture allows such exception). Where the age for completing compulsory education is higher than the standard for the minimum age of employment stated above, the higher age for completing compulsory education shall apply to this section. Licensees agree to consult with governmental, human rights and nongovernmental organizations, and to take reasonable steps as evaluated by CLC, the applicable Member Institution(s) or their designee, and the applicable Licensee(s) to minimize the negative impact on children released from employment as a result of implementation or enforcement of the Code.

5. Forced Labor: There shall not be any use of forced prison labor, indentured labor, bonded labor or other forced labor.

6. Health and Safety: Licensees shall provide a safe and healthy working environment to prevent accidents and injury to health arising out of, linked with, or occurring in the course of work or as a result of the operation of Licensee facilities.

7. Nondiscrimination: No person shall be subject to any discrimination in employment, including hiring, salary, benefits, advancement, discipline, termination or retirement, on the basis of gender, race, religion, age, disability, sexual orientation, nationality, political opinion, or social or ethnic origin.

8. Harassment or Abuse: Every employee shall be treated with dignity and respect. No employee shall be subject to any physical, sexual, psychological or verbal harassment or abuse. Licensees will not use or tolerate any form of corporal punishment.

9. Freedom of Association and Collective Bargaining: Licensees shall recognize and respect the right of employees to freedom of association and collective bargaining.

1. CLC and the Member Institutions will continue to monitor these issues and will promote studies that examine conditions and factors related to minimum and prevailing wages and employees' basic needs.

University of Illinois at Urbana-Champaign
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