As a response to the protesters' plea, Rutgers University president Robert Barchi has announced that the university will snap ties with sports merchandise manufacturer Adidas over the non-payment of severance to the Indonesian workers.

The protesters, belonging to the campus student group 'Rutgers United Students Against Sweatshops', had earlier held a demonstration at the university's bookstore opposing the school's tie-up with the global sports manufacturer giant in the wake of the Indonesian labor controversy.

In a letter sent to the RUSAS protestors, Barchi wrote that he appreciates the group's hard work in bringing the issue to the forefront. As Daily Targum reports, Barchi assured them that their concerns about Adidas have not been ignored.

He wrote: "I agree with you that Adidas' refusal to acknowledge its responsibilities to the PT Kirzone workers and pay them Adidas' share of their legally mandated severance payments is not consistent with the values of this university."

The PT Kizone factory in Indonesia was shut down in early 2011 and its owner fled the country leaving 2,686 workers without jobs and with a shortage of $3.4 million in legally mandated severance pay. Apart from Adidas, the factory also manufactured sports goods for Nike and Dallas Cowboys Merchandising who readily paid $1.6 million, leaving $1.8 million unresolved. But, Adidas has refused to pay the amount, saying it is not contractually obligated to pay anything to the displaced workers, reports Maquila Solidarity Worker.

"We expect the companies with which the university has a trademark license agreement with to respect and uphold the labour and legal rights of workers producing Rutgers-branded products, and Adidas' actions are not in keeping with this expectation," Barchi wrote.

With Barchi's announcement, the New Jersey-based university joins Cornell who also severed all ties with Adidas over the same issue in September. Many Wisconsin-Madison students have also been urging the university to put an end to its $11 million sponsorship agreement with Adidas.