The University's Committee on Labor Standards and Human Rights voted Friday to immediately start the process of ending the contract between the University and the New Era Cap Company.

"The committee ... recommends that the University immediately institute procedures to cut the licensing relationship with New Era Cap Company and that reinstatement or renewal of the license not be considered unless New Era adequately demonstrates that it is in conformance with the University's Code of Conduct (for University Licenses)," wrote committee chair Larry Root in an e-mail to interim University President B. Joseph White.

The decision comes after seven months of conflict that began when the Worker Rights Consortium filed a preliminary report containing several allegations in reference to the company's health and safety procedures, among other alleged problems.

According to University officials and members of the committee, New Era did not start to respond to the accusations until recently, and their response thus far has been inadequate.

White responded that he will follow the committee's advice and said in another e-mail that the first actions to end the contract will be taken today.

The committee made their decision under heavy pressure from White and members of Students Organizing for Labor and Economic Equality, who were present at Friday's committee meeting.

At a National Day of Action rally outside the Fleming Administration Building April 4, SOLE members asked White to make a decision regarding the New Era contract. In response, White said he was in favor of cutting the contract, but the decision would be based on the recommendation of the committee and asked the committee to make the decision at their next meeting.

SOLE members also asked White on two occasions to cut a symbolic version of the contract during the rally, but White refused.

"I have decided not to participate in a symbolic cutting of the contract with New Era with a giant pair of scissors or to do anything else that might appear to be 'celebratory,'" White said.

"I understand the need to sometimes take painful action in pursuit of overarching goals and needs. But any action that will reduce work, and therefore employment or employment security for people, at New Era or elsewhere, is regrettable, if necessary. My mood about it is somber, not celebratory."

Though the members of the committee voted 6-1 in favor of cutting the contract immediately, Root said committee members still had some reservations about the consequences of their decision.

"My concerns are that people making Michigan goods are respecting the Code of Conduct," Root said. "But a negative outcome would be if things aren't corrected and it means people lose their jobs."

Root added that he hopes the relationship between New Era and the University does not end and that the contract continues because he said the purpose of their action was not to hurt the company, but to help the workers.

Despite their concerns, the committee agreed the University should make "as strong a statement as possible" against New Era, Root said.

SOLE members said they believed the committee made the right decision, given the WRC's stated allegations - which include a failure of New Era "to protect workers adequately from musculo-skeletal disorders," a high number of avoidable injuries due to needle punctures and inadequate measures taken by the company to protect workers from blood contamination - and the company's lack of response to those allegations.

The University "is a spotlight school," said committee member David Deeg, who is also a member of SOLE and an RC sophomore. "Students feel it has a role of positive change and of being a public voice. Our students feel like it failed in being that public voice."

University spokeswoman Julie Peterson said last night that the company had not yet been officially notified of the University's decision to end the contract and added that it will take at least three months for the contract to become obsolete. The University is required to give the company a 90-day notice before the contract can to be terminated.