ICFTU OnLine... 10-09-98

Restructuring at Levi's: the trade unions want a world-wide discussion

Brussels, October 12 1998 (ICFTU OnLine): "Levi Strauss has adopted a fiercely anti-union strategy. The multinational claims to have a social conscience, yet its attitude is far removed from the brand image it tries to give itself. Levi's was the first to adopt a code of conduct in which it committed itself to respecting minimum labour standards, but it doesn't apply it." Meeting in Berlin last week, the executive board of the International Textile, Garment and Leather Workers' Federation (ITGLWF), associated with the ICFTU, denounced the hypocrisy of the world's leading jeans company following its announcement on September 29 that it was to close four factories in Europe (three in Belgium and one in France) that employ a total of 1461 workers.

"After the discussions we have just had with the US delegates, we are convinced of the need to extend the discussion to the world level. We sent a letter on Thursday morning to Levi's head office inviting their CEO Bob Haas to meet us." Patrick Itschert, general secretary of the European textile workers' federation, believes the explanations given by Levi's over the last few months to justify major restructuring (11 factories have been closed down in the US and another two are headed the same way) do not stand up to scrutiny. The reason Levi's is losing its attraction for young consumers, he believes, is because its only concern is to maximise profits. "The Belgian and French sites threatened with closure are profitable. The over-capacity the group claims it is facing coincides, strangely, with an increase in its activities outside the European Union. Levi's is turning to subcontracting and joint ventures. In Turkey for example, the company has drawn up an exclusive sub-contracting agreement. A factory was set up. In August 1997, it employed 150 people. There will soon be triple that number. I firmly believe this is relocation in disguise, and that they've been planning it for a long time."

Furthermore, Levi's does not respect ILO Conventions 87, 98 and 135 on the right of workers to form trade unions and bargain collectively, continues Patrick Itschert. "In Hungary, the management stopped its workers from organising. We fought them for two years and finally, given the size of the movement, they had to give in." An approach which will come as no surprise to the US delegates attending the ITGLWF executive in Berlin last week, as they have also seen the international federation step up its pressure on Levi's central management to respect its commitments (its code of conduct) and internationally recognised labour standards.

As for the 1461 Belgian and French workers, the meeting of the Levi's European Works Council in Brussels on October 5 agreed to give the workers' delegates a time limit within which to put forward counter proposals on the basis of experts' reports. But the unrepresentative nature of the Levi's works council will make the forthcoming discussions very difficult and is stoking union anger. "The management has manoeuvred very skillfully" says Patrick Itschert "in such a way that the trade unionists delegated by the European production units and representing over 3000 jobs are in a minority in face of many staff "representatives" who are in fact executive staff from commercial outlets sent by Levi's management. The Finnish delegate, who represents seven people, has the right to one vote, the same as the French delegates who represents the 530 people threatened with redundancy at the "La Bassée" factory. In the negotiations to set up the works council we wanted proportional representation, but Levi's refused."

The directive on European Works Councils adopted in 1994 by the European Council of Ministers gives workers in "community size" enterprises the right to be informed and consulted over the activities of the group, its structure, its economic and financial situation, its outlook and future developments, in short anything likely to affect the workers. It concerns enterprises with at least 1000 employees in the 18 signatory States, at least 150 of whom are in two or more of these countries. At present there are some 450 European works councils in operation. The directive is to be re-evaluated by the European social partners in a few months time. Its impact on industrial relations could be considerable, leading to greater transparency in the way multinationals operate. Information and consultation rights may be just one step on the way to negotiation. All will depend on the good will of central managements. As has been shown, in the negative sense, first by the closure of the Renault Vilvorde plant and now by closures announced by Levi's.

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