Introduction

University of Alabama at Birmingham (hereinafter “UAB”) is committed to conducting its business affairs in a socially responsible and ethical manner consistent with its educational, research and/or service mission, and to protecting and preserving the global environment. While UAB believes that Licensees share this commitment, UAB has adopted the following Labor Code Standards (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 to manufacture Licensed Products (as that term is defined in the License Agreement) bearing the names, marks and indicia of UAB. 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 Products for the consumer.

As a condition of being permitted to produce and/or sell licensed products bearing the name, trademarks and/or images of UAB, each Licensee must comply with this Code. If UAB, in its sole discretion, determines that any Licensee has failed to comply with this Code, then UAB may either terminate its business relationship and License Agreement with the Licensee or require that the Licensee implement a corrective action plan on terms acceptable to UAB.

Licensees agree to operate work places and contract with companies whose work places adhere to the standards and practices described below. Workplace shall be defined as all manufacturing and residential facilities directly operated by the Licensee or those making products for said Licensees. UAB prefers that Licensees exceed these standards.

Standards

  1. Legal Compliance: UAB 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 products or materials bearing the name, marks and indicia of UAB.  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 take effective actions to achieve full compliance with each of these standards.  Licensees further agree to refrain from any actions that would diminish the protections of these labor standards

  2. Employment Standards: UAB will only do business with Licensees whose workers are in all cases present at work voluntarily, not at risk of physical harm, fairly compensated and not exploited in any way. In addition, Licensees shall comply with the following standards:
  3. Wages and Benefits: Licensees must provide wages and benefits which comply with all applicable laws and regulations and match or exceed the prevailing local manufacturing industry practices.

  4. Working Hours: Except in extraordinary circumstances, employees shall (i) not be required to work more than the lesser of (a) 48 hours per week and 12 hours overtime per week, or (b) the limits on regular and overtime hours allowed by the law of the country of manufacture; and (ii) be entitled to at least one day off in every 7-day period.

  5. Overtime Compensation: All overtime employees must work hours voluntarily. 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 one and one-half their regular hourly compensation rate.

  6. Child Labor: The use of child labor is not permissible and will not be tolerated. 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.

  7. Prison or Forced Labor: The use of forced labor, prison labor, indentured labor, bonded labor or other forced labor is not permissible and will not be tolerated.

  8. Health and Safety: Licensees must provide workers with a safe and healthy work 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. In addition, Licensees must comply with the following provisions:

    • The Licensee shall ensure that its direct operations and those of any subcontractors comply with all workplace safety and health regulations established by the national government where the production facility is located.

    • The Licensee shall ensure that its direct operations and subcontractors comply with all health and safety conventions of the International Labor Organization (ILO) ratified and adopted by the country in which the production facility is located.

  9. Non-Discrimination and Respect for Life: While UAB recognizes and respects cultural differences, 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.

  10. 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.

  11. Freedom of Association and Collective Bargaining: Licensees shall recognize and respect the right of employees to freedom of association and collective bargaining of their choice. No employee shall be subject to harassment, intimidation or retaliation in their efforts to freely associate or bargain collectively. Licensees shall not themselves prevent or cooperate with those who would prevent workers from organizing for purposes of collective bargaining. Licensees shall allow union organizers free access to employees. Licensees shall recognize the union of the employees' choice.

  12. Women’s Rights: Women workers will receive equal remuneration, including benefits, equal treatment, equal evaluation of the quality of their work, and equal opportunity to fill all positions as male workers. Pregnancy tests will not be a condition of employment, nor will they be demanded of employees. Workers who take maternity leave will not face dismissal nor threat of dismissal, loss of seniority or deduction of wages, and will be able to return to their former employment, or a similar position, at the same rate of pay and benefits. Workers will not be forced or pressured to use contraception. Workers will not be exposed to hazards, including glues and solvents that may endanger their safety including their reproductive health. Licensees shall provide appropriate services and accommodation to women workers in connection with pregnancy.

Compliance and Disclosure

Licensees shall disclose to UAB or UAB’s licensing agent the information below.

  1. Manufacturers’ Information: Upon execution and renewal of the License Agreement, upon the selection of any new manufacturing facility which produces Licensed Product(s), or upon request,  Licensee will disclose the company names, contacts, addresses, phone number, e-mail addresses and nature of the business association for all such facilities which produce Licensed Products(s);

  2. Compliance with Code: At least sixty (60) days prior to the end of each contract year of the License Agreement, Licensees will provide written assurance that (i) that they are in compliance with the Code and/or (ii) are taking reasonable steps to remedy non-compliance in facilities found not to be in compliance with the Code.  Licensees will also disclose any difficulties encountered during the preceding year in implementing and enforcing the Code at any facilities which produce Licensed Product(s);

  3. Verification: It shall be the responsibility of Licensees to ensure their compliance with the Code.

Remediation

If the UAB determines that Licensee has failed to remedy a violation of this Code, UAB will consult with Licensee to examine the issues and determine the appropriate measures to be taken. The remedy will, at a minimum, include requiring Licensee to take all steps necessary to correct such violations including, without limitation, paying all applicable back wages found due to workers who manufactured the Licensed Product, and reinstating any worker whose employment has been terminated in violation of this Code. If consultation and agreed upon measures fail to adequately resolve the violations within a specified time period, the UAB and the licensee will implement a corrective action plan on terms acceptable to UAB. UAB reserves the right to terminate its relationship with any licensee which continues to conduct its business in violation of the corrective action plan, in accordance with the terms set forth in the license agreement.