Universities nationwide are ending their contracts with New Era Cap Company because of labor disputes, but officials at Syracuse University are working with the company to improve its practices, said Betsy English, director of Bookstores and Trademark Licensing.

Several universities, including Duke, Georgetown, North Carolina, and most recently, Western Michigan, have ended their relationships with the cap-making company because of the company’s employee complaints concerning health and safety, wage discrimination and problems with unionizing.

Hundreds of employees at New Era’s Derby, N.Y., plant, have been on strike since last summer after seven employees filed complaints with the Worker Rights Consortium, a labor organization that works to ensure collegiate apparel is produced under proper conditions.

The workers alleged that New Era failed to implement and maintain health and safety precautions, reduced employment among older workers and those who were partially disabled, and didn’t allow employees to choose and join their own labor unions, according to the WRC’s assessment of complaints against New Era.

The complaints about the company raise ‘serious concerns that New Era’s actions are causing irreparable harm to workers’ rights and well-being,’ the report added. New Era officials could not be reached for comment, but the company released a statement addressing the WRC’s concerns earlier this year.

In its response, New Era wrote that the company ‘… is in full compliance with all applicable Codes of Conduct … has become the benchmark for the industry in the development of ergonomic programs … has never been a party to any age or disability discrimination proceeding. Our record in this area speaks for itself.’

Scott Nova, executive director of the WRC, said New Era has only recently begun stepping up efforts to improve its facilities after being pressured by colleges and universities. He called New Era’s handling of the Derby situation and other similar New Era problems part of a ‘pattern of a lack of candor.’

‘They refused to cooperate in any way with our investigation and the company only began talking when a number of universities started putting pressure on New Era,’ Nova said.

Despite the number of schools that have stopped doing business with New Era, English said SU has been carefully evaluating the situation and won’t make a decision until all claims have been investigated.

‘We as a university want to be very sure that what we do is very judicious and fair,’ English said. ‘It’s interesting what other schools do but we need to do what’s in our best interest that reflects best on the university.’

The first measure toward alleviating tension between New Era and the WRC will take place in April, when the two sides will meet to discuss what can be done to bring New Era up to par, Nova said.

‘So far it’s been very difficult to assess whether they’ve improved their practices because employees are in the middle of a strike,’ Nova said. ‘We hope we’ll be able to make great strides when we meet in April but how fruitful that will be we don’t know yet.’

SU’s Licensing Administrator Maureen Riedel said like Nova, she too noticed a sudden increase in New Era’s receptiveness to discuss the issue after schools began suspending contracts with the company.

‘When there have been issues, the key is to get communication moving, and recently the communication has been great,’ she said.

Riedel said SU won’t make a decision about what to do with its contract with New Era until after the WRC and the Fair Labor Association, another employee rights’ organization that SU is a member of, meets with New Era representatives.

‘It’d be premature to do something as a university before these agencies come to a conclusion,’ she said. Peter Webber, chairman of SU’s Trademark and Licensing Advisory Board and director of Auxiliary Services, said the university doesn’t want to sever ties with New Era because doing so would discourage the company from modifying its practices.

‘Both associations discourage severing business ties because we want this to be constructive,’ Webber said.

Riedel agreed.

‘We don’t want to cut-and-run with our licensing,’ she said. ‘We want to see it through.’

English anticipates that a decision will be made during the next few months, but said the process may slow because each side needs to document the process.

‘It’s sort of like everything’s building to a conclusion,’ English said. ‘Everyone’s looking for an end. It’s just how we work to those ends that can be difficult and a long road.’

Webber said SU’s affiliation with New Era is limited. In addition to being a member of the WRC and FLA, Syracuse is also a member of the Collegiate Licensing Company, an agent that represents more than 180 universities to provide resources and expertise in dealing with licensing issues, English said.

English said the CLC was also taking an interest in the outcome of the New Era situation, but isn’t making any decisions regarding the company and its products yet.

‘They’ve pretty much said that it’s a work in progress and there’s still work to be done,’ English said. ‘They haven’t reached a conclusion yet because it’s too premature.’

Published on March 26, 2002 at 12:00 pm